Guanteed Acceptance Health Plans – Good or Bad?

admin — Mon, 22 Jun 2009 18:07:53 +0000

Are Guaranteed Acceptance Health Plans Good or Bad?

I have to tell you that I have never been a big fan of any sort of guaranteed acceptance medical plan, or even those mini-med plans that accept more people but have specified benefit levels.

Pros of Guaranteed Acceptance Medical

Takes anybody who can pay the premium (possibly with age restrictions)

Pros of Specified Benefit Mini Meds

Usually takes more people than individual major medical insurance. For instance, some will accept diabetics.

Cost Benefits?

Guaranted Acceptance or Mini Medical Plans are not cheap! Most of the larger guaranteed plans and specified benefits plans will cost as much, or more, than an individual health insurance plan for any coverage that approaches “real health insurance”.

Is it Health Insurance Or Not?

If it doesn’t smell like a pig, it probably isn’t a pig. Sometimes, guaranteed acceptance health plans will be underwritten by insurance companies, and provide some insurance-like benefits. For instance, some plans may offer to pay an amount like $500 a day while a covered person is in the hospital.

Will this hospital benefit keep you from paying lots of money out of pocket if you have to go to the hospital? …probably not. You really need to do some research on the average cost of being in the hospital for a few days before you spend your cash on any sort of medical discount plan even it does advertise that it takes everybody. What they take is everybody’s money!

That $500/day will not do much to defray your $30,000 hospital bill. And what if you need out-patient services later. A $300 – $500 yearly benefit won’t do much for you either. Really.

But is it health insurance? Well a lawyer friend of mine asked me to find out if one advertised plan she could get for $99 a month was really health insurance. That monthly cost seemed a little unrealistic considering she was middle aged and overweight.

Anyway, I called, and I kept asking the customer service rep if the plan was health insurance. I could not get an answer, and as I persisted, his tone turned from friendly to downright nasty! He knew he could getin big trouble if he claimed he was selling health insurance, and yet he knew the sale would be lost if he admitted it was not.

This simple test should raise a red flag in everybody’s mind.

What About Mini Meds?

Now specified benefit plans are allowed to be called medical insurance, though not major medical. They may provide some benefits, but still have limits on payments that are not likely to help much if you run up medical bills. The point is – if you are healthy you are probably better off with major medical health insurance.

If you have some health issues, every US state has a high risk plan you can join. These high risk plans can cost a bit more than a healthy person would pay for medical insurance, but again, larger min-meds are not cheap either!

How to Find Major Medical Insurance In Your City

Go Here: Best Individual Health Insurance Quotes

Also see mini-med vs major medical health insurance.

PPO vs HMO vs HSA Pros and Cons

admin — Mon, 14 Apr 2008 17:31:06 +0000

Compare PPO, HMO, HSA Health Plans Advantages and Disadvantages

Fast and Free Health Insurance Quote Comparisons

If you are searching for your own individual health insurance or choosing between options for your group major medical, you may not know what the difference between PPO, HMO, and HSA major medical health plans are. We have always felt that the more consumers know about their own health insurance, the more likely they are to enjoy the benefits of it.

Best Family Health Insurance Quotes

HMO: Health Maintenance Organization This type of insurance plan will restrict you to using a plan network for almost all of your covered medical services. In general, any services provided from outside this network will not be covered unless it is a special circumstance. Exceptions may be emergency treatment from outside the area of coverage or some procedures that the network does not contain a provider for.

Advantages of an HMO: In general, HMO plans do the best job of controlling medical costs. You will probably have the lowest copays for any covered services. Many people like the convenience of having a booklet with providers to choose from.

Disadvantages of an HMO: You must seek your medical services from a network provider if you want the insurance company to pay. This can be inconvenient and restrict your choices. Also, since an HMO provides so much coverage, you may be paying for more coverage then you want or need.

PPO: Preferred Provider Organization: This type of plan is a bit more flexible. It will contain a network of medical providers, and the health plan will offer the lowest rates and most comprehensive coverage if you stay inside the providers they control. You may choose to find a provider outside of the network, but accept that you will be covered at a lower rate. As with an HMO, the in-network difference will probably be waived in an emergency.

Advantages of a PPO: The health insurance company gets to control costs within the network, but you can still choose to use the out of network coverage if it is more advantageous for you to select a non-network provider.

Disadvantages of a PPO: You must accept lower coverage if you leave the network (except in an emergency). Again, you may be paying for more coverage then you want or need, though a PPO is usually a decent compromise.

HSA: Health Savings Account with a High Deductible Health Plan: These are higher deductible health insurance policies that are designed to work with a health savings account. Now an HSA can still work with a network, much like a PPO network, though that isn’t the basis of the plan.

HSA Advantages: Within limits, your HSA contributions will be tax deductible. Your contributions can be taken out without a penalty after retirement if you do not use them. The money in the HSA can earn interest too. It can also be used for a variety of medical services that may not be covered by normal health insurance plans. You will not be paying for a very high level of insurance coverage if you do not need to use it.

HSA Disadvantages: Franky, HSA plans sound great, but they just do not work out for everybody. For one thing, you must be a disciplined saver. If you have not put any money into your HSA account, then you will need to fund the higher deductible some other way!

NOTE: We cannot find one major medical plan that works for everybody. People who thought they would be thrilled with an HSA plan ended up switching to a PPO because they did not put money into savings like they thought they would. Others love HSA plans, and use them very well, and they would hate the restrictions of an HMO. Still others would rather have their health plan help them choose their doctors and other medical service, and they have no problem cutting costs by using a PPO or HMO network. Figure out what your own style is, compare health insurance rates, and then make a choice!

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