There’s
an ancient Chinese curse that goes like this:
“May
you live in interesting times.”
Ha,
lucky us!
As
long-time readers know, the purpose of this newsletter is to provide information
that can help you end up with more money in your pocket, and less in the pockets
of the insurance companies, the government, and the medical establishment.
Currently
the government sucks up 45 percent of GDP, and the health care sector takes
up 16 percent. And in both of these arenas there is a ton of bloat,
waste, and corruption. The best way to solve those problems is, and
has always been, transparency and free competition.
Fortunately,
there is still progress being made in these areas. More people than
ever are choosing HSA-qualified health insurance plans. Because those
plans have high deductibles, the consumer tends to become more involved in
asking about costs and comparing prices, thus increasing the need for providers
to actually compete for the business. This is a great thing!
We
can also expect to see more websites and resources available to help you compare
prices and shop for medical services. I’ll be reporting on the
best of these in a future issue.
The
new health care law is still in the process of being implemented, and to get
the most for your money there are certain provisions you should be aware of.
Coming
Changes
Guaranteed
Coverage for Minors
On
September 23, all new plans will cover children without any underwriting.
Anyone under age 19 who has been unable to get coverage due to pre-existing
health problems will now qualify for any available plan, without waivers or
rate-ups.
If
you have a child who has not been able to qualify for coverage, or if you
know anyone in this situation, please contact us immediately. We cannot
sign the child up yet, but we are expecting quite a rush and it will help
us to organize ahead of time.
If
you have a policy that was in force on March 23 or later, you can also add
your child without underwriting, on September 23. However, it appears
that most insurers will no longer be offering child-only policies.
Grandfathered
Plans
Plans
that were in force prior to March 23 of this year are considered “grandfathered”.
This means that many of the provisions of the new health care law do not apply
to these plans.
Any
plan effective on or after March 23 is subject to additional requirements
once you have reached your one-year anniversary date. In addition to
the new rule on covering children, plans will also have to cover preventive
care 100%, and cannot have lifetime limits.
These
rules, particularly the requirement to cover preventive care, will cause a
great increase in usage of these benefits, and, unfortunately, we are predicting
that these plans will have pretty large rate increases.
Thus
if you have a plan that went into effect prior to March 23, you may want to
consider staying with that plan, rather than changing to a new plan that is
not grandfathered. It even appears that raising your deductible
could cause you to lose your grandfathered status.
Preventive
Coverage
All
new plans that went into effect after March 23 will cover preventive services,
such as certain vaccines or mammograms, with no co-pay or deductible.
There may be a rush on the doctors and subsequent waiting lines, so you may
want to schedule your appointment now.
If
you are in a grandfathered plan, your coverage will not change. Once
again, if you switch plans it could be good to get this benefit, but it will
probably also result in higher rates and bigger increases going forward, depending
how many people rush off to get medical tests done that they may have been
putting off.
Get
the Most for your Money
It remains our belief that the best way for most people to insure themselves
is with a high deductible HSA plan, along with a $100 Deductible Accident
Plan. Most of our clients also carry coverage that can provide
additional money if a catastrophe hits – either with a Critical Illness
policy, or disability insurance that provides an income when you can’t
work. Let us know how we can help you get the protection you need, at
the lowest cost available.
It’s
Not What You Make That Matters…It’s What You Keep
Regardless
of age, there are certain financial threats that we all face. Things
like market volatility, rising taxes, rising cost of living, sickness or injury,
lawsuits, emergencies, and the possibility of outliving our money should all
be considered in a comprehensive plan. But how many people really take
the time to evaluate their financial state of affairs and stress test their
financial decisions with all of those factors (and more) simultaneously considered?
The
obvious answer to that question is that very few people make coordinated financial
decisions with clarity and the confidence of knowing that these risks have
been mitigated.
I
have asked Sean Rogers, our resident Financial Advisor to provide you with
relevant, timely, and sometimes contrary information that will help you make
the best “big picture” decisions over time. Sean has really
helped me to shift my thinking and simply have a better understanding of financial
fundamentals and principles that very few people in the financial industry
are talking about.
One
area that has had a big impact on me is around what Sean calls “Distribution
Planning”. Don’t you find that just about every Financial
Advisor out there would be happy to help you manage and grow your assets?
They talk about things like asset allocation, average rates of return, and
staying invested for the “long haul”. That probably sounds
very familiar.
But
how many of those same advisors are talking about your “exit strategy”
and how you can most efficiently access your hard earned retirement money
when you need it most? My guess is that no one has talked to you about
it because Sean was the first person that brought it to my attention.
After all, isn’t that the reason that we work hard and save our money?
The idea is to spend it or pass it on, right?
So
if you want to get some great tips and ideas on taking the money that you
have, taking less risk with it, and still generating as much income from it
possible, you are going to want to register for Sean’s upcoming webinar.
It will be held on August 26th at 9 p.m. EST. To register for this session,
just Click
Here.
I
guarantee you will be very glad you did.
As
always, we are constantly looking for ways to provide the tools, resources,
and expertise you need to help you manage your money in a way that is most
beneficial to you. Let us know if you have any questions, and how we
can bring even more value to you during these “Interesting Times”.
Best regards,
Wiley
Long
President - HSA
for America
P.S. - Next month I’ll introduce a new resource that will save some people a bundle on their prescription drugs, and make you aware of a coming change that may affect your experience in the health care arena.
