A person’s goal in purchasing health insurance is to get the best possible coverage at the best possible price. Almost all life/health insurance representatives are more than glad to sell you a policy. Frequently selling you one with as high of a premium that you will agree to.
QUESTION: HOW MANY COMPANIES OFFERING MAJOR MEDICAL DO YOU REPRESENT? Truthful answer, 70% of agents represent one, 20% represent two, and only 10% are licensed with three or more. In most states, there are a minimum of 200 major medical insurers, HMOs, and PPOs. An insurance person claiming to be very knowledgeable or an expert would have access to numerous insurers right then and there. Within a major medical plan there are so many variables including doctor co-pays, specialists, deductibles, outpatient care, ambulance, prescriptions and many more.
Do you know many insurance companies will not pay for a $500 ambulance transport unless it turned out to be a matter of life and death? If a person is having serious chest pains, or multiple stroke symptoms, you are going to call an ambulance. Most often, only GOD, not the insurance company can determine what would have happened if an ambulance was not used. How often do you expect the claim will go in your favor?
QUESTION: HOW DO MAJOR MEDICAL, MAJOR HOSPITAL, HMOs and PPOs DIFFER AND WHICH DO I CHOOSE? If the agent can answer this, and ends up with major medical preferred (which could be the right answer), ask another question immediately. Can you also offer me right now an HMO or PPO plan? You are testing the agent’s knowledge and ethics. Tremendous amounts of agents selling health insurance are paid 3 times as much to sell you major medical. They often do not bother being licensed with say a Blue Cross HMO or a PPO provided. These plans are often crucial to individuals with pre-existing health conditions that require a 3 month, 6 month or longer waiting period.
QUESTION: DO YOU HAVE A HIGH DEDUCTIBLE MAJOR MEDICAL & WILL IT SAVE ME MONEY? You have 200 to 300 major medical insurers available to you. Chances are very high your agent is not polished on the details nor has a high deductible plan in his or her portfolio. There are likely around 40 major medical insurers in your coverage area with high deductible options. Many of these same insurers have co-pay options of 70% or 80% to a maximum where it becomes 100% coverage. This plan is often referred to as HDHP, High Deductible Health Plan. You may be shocked by how much you can lower your rates.
QUESTION: CAN YOU EXPLAIN TO ME WHAT AN HSA IS, & DO YOU KNOW HOW I CAN SET ONE UP? Correct answer passing rate on this question would be 5% on the high side. 20% on the bluffing side. A HSA stands for Health Savings Account. It is NOT an insurance policy. President Bush approved the act of setting up an HSA in 1993. Simply put an HSA is a savings plan alternative that you set up, pay into, draw out of for uncovered health expenses, and let accumulate on for future costs on a tax-free basis. For the self-employed, some tax benefits do not currently apply. Your bank, insurance company, credit union, etc can set it up.
SUPER QUESTION: WOULD YOU EXPLAIN WHICH WOULD BENEFIT ME THE MOST, A MAJOR MEDICAL PLAN OR A COMBINATION HDHP AND HSA? Only a health insurance expert can do the job on answering this question, plus the ability to put the honest answer into effect. I have been studying insurance agent traits and abilities for over 25 years, and my best estimate would be one percent. Now where are you going to find that one percent? The yellow pages are probably only going to provide imposters, even though some have the best intentions.
Here is how to find the one percent. I used a major internet and typed in the following four words: hsa hpip major medical. The first 30 listings not only provided sources, but a bonanza of information not contained here. Insurance Agents, try this internet search and promote yourself to being a true health insurance expert.