Is A High Deductible Plan Right For You?

When you have a high deductible health insurance policy, you’re essentially agreeing to take on a significant portion of the initial medical expenses that you’ll encounter each year. While this type of plan is not right for everyone, it can be a good choice for individuals who:

• Are young and healthy. The younger and healthier you are, the less likely it is that you’ll need regular medical care. And while being a healthy doesn't preclude your risk of having an accident that results in injury, the overall savings you'll experience on your monthly premiums can make facing this risk worth it. In fact, you can take the money you save on premiums and put at least part of it into a health savings account (assuming that you meet the qualifications) and then use those funds to pay your deductible should you have an accident. Since those funds rollover from year-to-year they will still be there should you need them to pay for medical expenses later on in life or for retirement.
• Need a tax deduction. When you have a high deductible health insurance policy with a deductible that meets IRS requirements, you can open a health savings account that allows for a large annual contribution which is tax-deductible. The limits for the contributions change from year to year but in 2012 they are $3,100 for a single-person account and $6,250 for a family account. There is an additional $1,000 catch-up contribution allowed for individuals over age 55.
• It's the only way you can afford health insurance. High deductible health insurance plans have an additional benefit that many consumers don't realize. When you have a high deductible plan, let's say with a deductible of $5,000, you’re expected to pay that first $5,000 worth of medical expenses but you are not doing so at the retail rate charged to consumers who don't have insurance. Instead, the insurance company works with your medical service providers to control the overall cost of treatments. In addition, by giving a defined deductible, they control the overall amount you’ll be on the hook for.

To learn more about the different types of Oklahoma City insurance policies and which might work better for you, give us a call at Alexander & Strunk Insurance today.

Post-Divorce Insurance Adjustments

A divorce can change your entire life almost overnight. It can change where you live, how you live, and what kind of insurance you need. If you're going through a divorce, here are some adjustments you should consider making to your insurance portfolio.

1. Change life insurance beneficiaries: If the current beneficiary of your death benefit is your soon-to-be ex-spouse, you need to consider who you want your new beneficiary to be. You can leave the benefits to a relative, close friend, your children, funeral home or a trust.
2. Get health insurance: If you're currently on your spouse’s health insurance plan then after your divorce you will qualify for COBRA coverage. However you will be limited to the options available on your ex-spouse's insurance policy and you will be subject to COBRA premiums that can include an additional administrative fee. Instead, you might consider getting your own individual health insurance policy with the coverage options you want, the network of doctors you prefer, and a premium you can easily afford.
3. Renter’s insurance: If you are not keeping the home that you and your spouse occupied and are instead moving into an apartment, then you need to consider replacing your Oklahoma City home insurance. A renter's insurance policy not only covers the risk of financial loss to the contents within your apartment (such as your electronics and furniture), but it also covers your liabilities should someone be injured when they're visiting you.
4. Long- and short-term disability: Should you become disabled after divorce you no longer have your spouse’s income to rely on. That makes it very important that you have your own long- and short-term disability policies. That way you can supplement your income after a disability without waiting for Social Security’s approval and waiting period.
5. Auto insurance coverage: Chances are good you shared an auto insurance policy with your soon-to-be ex-spouse. If that is the case then you need to quickly get an auto insurance policy for yourself. Your individual auto insurance policy will not only comply with state mandated insurance regulations but will also cover those events that concern you such as collision, theft and vandalism.

When you're going through a divorce, the last thing you want to think about is how it will change your insurance policies. But to ignore the impact divorce can have on insurance is to ignore the financial risks you face as you head into your new, single life. Give us a call at Strunk Insurance and we can work with you to make all the necessary changes with your new budget in mind.

What Makes HIPAA So Important

When you have a pre-existing condition, it can be difficult to get insurance coverage. If you delay obtaining insurance coverage until you know you are sick and need treatment, it is an action referred to by insurers as adverse selection. It is adverse because in order for insurance to work with existing premium payment structures, it cannot be purchased only by individuals with costly medical treatment expenses. Insurance must be purchased by a large number of individuals in order to protect against the potential of a serious illness or injury.

One way that health insurance companies protect themselves from adverse selection is to create pre-existing condition exclusions that allow them to collect premiums and provide protection for treatment of injuries and illnesses that are unrelated to the pre-existing condition while excluding claims that are related.

HIPAA, the Health Insurance Privacy and Accountability Act, limits the pre-existing condition restrictions that a group health insurance arrangement can enforce. It gives group health plans the ability to exclude conditions for the first 12-months (in some cases 18-months) only if the insured had a significant break in creditable health insurance coverage (which excludes coverage like major medical) that lasted more than 62 days. This protection means that as long as you have continuous coverage, a group policy cannot exclude your pre-existing condition.

But HIPAA also protects the privacy of your medical records, something that’s become increasingly important in this digital age. The way that your sensitive health information is handled and disbursed is tightly regulated and penalties are explained within the act, giving many businesses the encouragement they needed to train staff in proper data handling and enforce compliance.

Between helping secure your coverage and protect your information, HIPAA is one of the most valuable legislative protections to affect the insurance industry in recent years.

Check with Strunk Insurance today to make sure your Oklahoma City Insurance has you covered.