ObamaCare and Class Warfare

I read the news everyday, and there are always quotes detailing how the rich are taking/getting more than their share.  There is no doubt that people with money have more (of everything) than people without.  The beautiful thing about this country (U.S.A) is that we ALL have the opportunity to better ourselves, and succeed beyond our wildest imagination.  It wasn't until the 1920's that Americans really started recieving "things" from their friendly, altruistic government, and it wasn't until decades later that Americans expected these "things".  Prior to that, charities did a fair job of caring for the underprivileged and needy.  At that time, the "hand up" mentality was more common than the "hand out" mentality.  Charity and community were the orders of the day for those that needed it most.  The fact is that "rich" people can afford to equip themselves better than "poor" people because they have done the things necessary to make the money that they have. In spite of the government's best efforts to help the less fortunate: free food, housing, healthcare, college, business grants....etc., there is still a large segment of the population that remains (and will always remain) impoverished.  It makes you wonder who is actually benefitting from these "freebies".  There is a quote that was uttered a long time ago, but has never been truer than it is today,

 "If you rob Peter to pay Paul, Paul will always support the guy that is robbing Peter".

Enter ObamaCare.  There was a great survey on squidoo.com (http://www.squidoo.com/Obamas-Health-Care-Plan-Poll).  The survey has a nice "schmere" of questions, but the this part is what prompted this blog:

Now everyone will be able to get the care they need instead of only the wealthy

This implies that people without money have been going without care.  There are some cases where this is true, but the lions share of people without money (that have a health need), get treated.  There is no question that money will get you better care, and that will always be the case.  The question isn't "should the poor and sick get the care that they need"?  The first question that we should ask is "should the federal gov't be involved in healthcare"?  If we answer "yes" to that question, the next question is "how?".  There are essentially two options. 

1. Create a massive beauracracy to dictate who/how/when/what type of care is recieved; and maybe even provide said care
• this promotes the idea of "Paul" voting for the guy robbing "Peter"
2. Provide tax incentives to any organization that would like to provide/support charity care to the people that needed it most.
• this doesn't promote any voting block...just better care for those in need.

This is not an anti ObamaCare rant.  It is more of a frustration about the lack of personal responsibility and pride that plagues many Americans today.  I am not saying that being successful, or making more money is easy, but in this country anything is possible.  There is no shortage of people/organizations willing to help anyone to learn a new skill/trade to better themselves.  Here is an idea,  help yourself.  Go to the library...it is free.  Read a book, watch a how to video, apply yourself, and attain a goal. 

The problem isn't the system, it is what the system has done to a good portion of the population, and how it has shaped their views about themselves and their abilities to succeed.  The "teach a man to fish" parable comes to mind. 

Opinions, Comments and thoughts are appreciated.

If you would like to contact me directly: tuzzell@insphereis.com

Long Term Care...The Rest of the Story

Long Term Care Insurance is quite possibly the most underutilized insurance product with the best bang for the buck on the market today.  Before we get into the dollars and cents, let me paraphrase a definition.  Long Term Care can take on many forms: skilled nursing, assited living, nursing home, in home aid, certified family member looking after you.  The way that insurance companies define it is where the rubber meets the road.  A couple of months ago, a rep. from a major LTC insurance provider stated that if a person is unable to perform at least two ADL's (activities of daily living) then they can make a claim on their LTC policy.  ADL's are common things.  I am sure that if you gave it just a little thought, you could come up with a handful of people in your inner circle that could have used this type of insurance (after car accident, stroke, surgery...).  The thing that most folks don't understand about making a claim is that it doesn't have to be for forever.  If you just needed aid for a couple of months, that would be an option, and after said care was rendered, the policy would still be in force;  now that's insurance.

Now lets talk dollars.  As I said, LTC can cover many types of care:  skilled nursing ($100-300/day), assisted living ($1000/month and up), nursing home ($2000/month and up), in home aid (20/hr and up), and a family member (certified ) caring for you (whatever they want to charge).  There are other types of covered care, but this is a decent list.  The dollar amounts noted are empirical to my experiences in Arizona.  In my opinion, LTC insurance is cool because you could use in the event that you needed it when you are young, but the vast majority of people will require some form of long term care when they get older.

A good example is a 70 year old woman that needs more care than her family can handle.  She would be well served to get into an assisted living facility.  For this example let assume that they wanted a very nice facility where meals were provided, and there were nurses on staff at all times.  This might cost around $3000-$4000 per month.  If they didn't have an LTC policy in place, she, or her family would be on the hook for about $50,000/year.  This lady wasn't sick, just needed some care.  Grandma might live to be 85 or 90.  The costs of this facility could definitely add up.  If the funds dried up, she would have to change facilities, or rely on Medicaid to foot the bill (at a Medicaid approved facility).  If she had Long Term Care Insurance, a pool of money would have been growing (tax free) since the day of inception.  I could go on and on about how much money she would have had, and saved, with a little forethought.

Scenarios like these are endless, and each situation is different.  The best way to get into one of these plans is at a young age.  This will allow you to take advantage of time, and truly grow a vast pool of money that you can use when the time comes.  As modern medicine continues to improve, life expectancy increases.  The fact is, for 60% (or more) of us, the day that we need long term care will come.

Opinions, Comments and Thoughts are appreciated



For a quote, contact me at www.insphereis.com/tuzzell



http://www.squidoo.com/longtermcare
http://www.consumerinsuranceguide.com/long_term_care_insurance/long-term-care-insurance-is-more-than-nursing-home-care/
http://www.seacoastonline.com/articles/20130303-LIFE-303030324

10 Things to consider before buying Health Insurance

I thought that a list would be pertainant to help you navigate through the confusing world of health insurance.  There are a lot of things to think about when deciding on an insurance plan.  It is important to find a carrier and design a plan that fits the needs of you and your family because, if something medical happens in the future, this could be your health plan for life.  With that in mind, lets get started.

1. Have a budget in mind +Ashley Barnett 
• This might be the most important piece to the puzzle.  If you don't know what you can afford to set aside to protect your family then this is a difficult discussion to have.
2. Be prepared to discuss your medical history.
• I know that this is private, but there is no way around it.  If you don't feel comfortable enough with the agent to talk about yourself, then you might need a new agent.  There is no real way to hide any diagnosed condition from the health insurance provider; they do their due diligence.
3. Understand MOOP (maximum out of pocket)
• This is super important...Each health plan is a little different.  The MOOP is the most that you would have to come out of pocket before the insurance company will cover you 100%.  The math goes like this: deductable + coinsurance (if you have one).  There are specific rules that apply to families in order to make the worst case scenario more manageable. 
4. Will you need prescription benefits
• This is one of the catch 22's of the initial application process.  You may not have a need now, but if you elect to have no Rx benefit at the beginning, it is very difficult to add in later.  Some prescriptions can get prohibitively expensive.
5. What is your comfort level regarding deductable and coinsurance
• Many people that have had a group plan in the past are used to having low deductables ($1000-2500).  In the individual health insurance market, the relationship of deductable to premium is very evident.  If you like the idea of a high monthly premium for a deductable that you hopefully will never reach, then be my guest.  If not, design a plan with a higher deductable, and utilize all of the products that the market has to offer to keep your money in your pocket until you really need it.
6. Is your preferred doctor in the network
• If you have a doctor that you like, this is a deal breaker.
7. If you travel alot, this is important
• If you do any travelling, understand what kind of network your health insurance plan has.  Being out of town, and out of network can turn a nice vacation into a nice bankrupcy.
8. Is dental or vision insurance a concern
• These are insurance policies that many peoplel hold dear to their heart.  Plans for these types of coverages vary, so read the fine print.
9. Having supplemental insurance will limit exposure
• The idea of supplemental insurance has been around for long time.  As health insurance costs continue to rise, the popularity of these cash payout policies is on the rise.  Many people use these as a hedge against a higher deductable in order to maximize their protection and keep their premiums down.
10. Find a knowledgeable agent to guide you through the process
• Having someone that understands the market, the available products, and that can disseminate all of that information to you in simple terms is priceless.

I hope that you feel more prepared to delve into the world of health insurance.  If you have any questions, my contact info is below.  Feel free to use it.

Opinions, Thoughts, and Comments are always appreciated.

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Todd Uzzell
www.insphereis.com/tuzzell
todd.uzzell@gmail.com 

Are You Prepared??

Door of the Unknown

Preparation?  This means something different to everyone.  Some people don't like to plan and prepare, some can't do anything without a plan.  The fact is that life is full of unforeseen events.  While we can't plan for things that we don't know about, we can be prepared.  Here is a fascinating quote from a movie that I think is pertainent, "chance favors the prepared mind".  This just means that if you are prepared, the results of the unknown can be more easily dealt with.  Enter insurance, specifically health and life.  These two insurance products are the epitomy of preparedness.  In my daily interactions with people, I have met many that don't have either one of these two pillars of insurance.  Some of them can't afford it, don't want it, or don't think that they need it.  You could make an argument for any of these reasons, but at the end of the day, responsibility is the order of the day.  "Are you acting in a responsible manner?"  This question is posed on a personal level as well as on the bigger scale (your fellow man).  I am not going to get into the responsibility side of this industry...not today. 

 Let say that you are supremely prepared.  You have health, life, disability, long term care, and all aspects of your property and casualty covered.  At this point, I would probably get you a hug and a high five.  The next question is," do you have enough coverage?  I know that this sounds like another sales pitch, but coverage is relative.  If you have a mansion, six cars, and a million dollars in the bank, you need a different amount of coverage that a standard middle class family with a house, 1.5 kids, two cars and a dog.  This seems obvious, but trust me, it isn't.  An example of this that I run into everyday is people that have health insurance, and honestly believe that they are "covered.  When I ask if they are prepared to spend their savings to support their family in the event of a catastrophic event, they don't look so prepared.  While traditional health insurance is great, it doesn't help you or your family in times of emergency.  It is designed to pay the doctors and hospitals for your care.  If you have a medical emergency, there is a good likelihood that you will be unable to work, or complete your daily tasks for a length of time.  It is for this reason that supplemental cash insurance was created.  These policies cover the person where traditional health insurance covers the doctors and hospitals.  It is hard to truly be covered without these personal coverages supplementing your health insurance.  The truth is that if you are "underinsured", then you are not adequately prepared. 

 

The key is to have a plan in place to make sure that you are prepared for any event that can come your way.  Being prepared doesn't mean that a bad situation won't suck.  It just means that it won't be so life changing for you and your family that you won't be able to bounce back from it and essentially cease to exist in the manner that you have been.  When disater/emergency strikes, it is nice to have family or friends to help.  But the fact is that you are the one that is responsible for you,  not anyone else.  This is a concept that seems to be dying more each day.  In times of need, pointing fingers and blaming won't fix the problems that preparation would have.When someone you know, or even you (God forbid) is strickened with cancer, heart attack, or a major accident; who will pay the bills?  The prepared person would have a list of companies and resources to give as an answer to that question.  The unprepared person doesn't have any answers.  Which one are you???



Opinions, thought and comments are always appreciated.

 

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Todd Uzzell
www.insphereis.com/tuzzell
todd.uzzell@gmail.com 

Are You being "sold", or Are You BUYING?

Everyone hates to be "sold".   There is no doubt that if you walk out of a purchase wondering what just happened, it is a big thumbs down.  The fact is that if the sales person doesn't sell you something, then they don't get paid.  The even bigger picture fact is that if you get "sold", then you are not ever going to buy from that sales person again.  The grey area comes when you have a need (not a want, like a TV or new purse).  When we are looking for something that we need, we often will buy based on that need instead of making sure that what we are buying is the best purchase for our dollars.  Insurance is that kind of purchase.
As a consumer, it is imperative for us to search out the most knowledgable people to help us make the decision that is in our best interest. With the popularity and ease of the internet, we often look that way for answers.  The truth is, the internet offers us limitless information, but little direction.

There are some decisions that are pivotal inspite of how simple the process may seem.  Making the wrong decision for your insurance needs can be devastating.  If you don't understand what each product can and can't do for you before you buy, then how can you make an educated buying decision?  The worst part of the whole thing is that if you have a major health event, you may never be able to change the insurance that you went online and clicked a few buttons to purchase.  I know that our time is precious, and giving up just a few minutes seems like a jaw dropping experience.  But if you don't find out everything that you need to know, it could be a life altering choice.

 

Once you have taken the time to educate yourself on all of your options, then you are ready to "not be sold".  The educated consumer is a buyer.  When you are making a decision with all of the facts in hand, you will be comfortable and happy with anything that you choose to buy.  Insurance is a highly regulated business with many moving parts, find a licensed professional to help you navigate through the minutia.

Opinions, thought and comments are always appreciated.

 

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Todd Uzzell
www.insphereis.com/tuzzell
todd.uzzell@gmail.com 

The 5 Pillars of Insurance

I spoke with someone today that called insurance a "necessary evil".  I had no argument.  Insurance is a double edged sword.  It is something that you never want to use.  If you do need it, you want to have the best available; and you want to pay as little as possible for it.  It truly is a tangled situation. 

For this installment, lets agree that insurance is a need.  With that in mind, I put insurance in five catagories:  Property and Casualty (P&C), Health, Life, Disability, Long Term Care.  The question is, "what do all of these have in common"?  The answer is, "risk management".  In an earlier blog, I talked about limiting exposure as it pertained to health insurance.  The truth is that when managing risk, limiting exposure is the name of the game, and each of these products addresses that in their own way. 

Property and Casualty

This is not my speciality, but I'll tell you what I know.  P&C is an all incompassing field.  This covers your house, car, business, and anything else that you own.  This is the only "head of the monster" that covers your "stuff".  In the process of covering your "stuff", it provides indirect asset protection.  Whether you have assets or not, having your "stuff" insured will help you to replace it in the event of catastrophy.  There are also personal coverages built into P&C coverages.  For instance, if an injury occurs in a house or business, it is often possible to make a claim against the home or business insurance for the medical expenses incurred from said event.  If you get into a car accident, there are protections built in to cover the medical necessities of the injured as well.  Over the years (and many law suits), the Property and Casualty coverages have gotten pretty comprehensive.  As with any insurance, more coverage = more cost. 

Health Insurance

This is the insurance that most people know they should have.  The truth is, if you get sick and go to the hospital, you will get fixed.  You will leave the hospital with a bill, and you can pay it at your leisure (not exactly, but there are restrictions on how hospitals collect money).  The idea behind health insurance is to protect you from major medical bills.  It is not for regular check ups, or generic prescription drugs.  Many people have gotten spoiled with their group plans at their jobs.  These plans generally have a low deductable, and they cover almost everything.  The reality is that health insurance wasn't designed to cover everything that could go wrong with you. 

As the definition of health insurance changes, expectations of coverages vs. costs must change too.  The future of health insurance in America will be high deductables combined with supplemental cash benefits.  This combination will allow consumers to keep costs down, and give them the coverage that they need in case of calamity.  We will also see growth in the defined benefit plans.  The market will design plans that are advantageous to the consumer if it is allowed to.


Life Insurance

Life Insurance is the only policy that is guaranteed to pay out.  The downside is, you have to die to get it.  This insurance has many purposes.  Young people have it to provide for their family in case they die unexpectedly.  Older people have it to leave something to their family when they die.  In both cases, it can be used to cover debts and final expenses.  There are many ways to structure a life insurance policy.  Some people prefer term insurance, and some prefer permanent insurance.  Each of them are valuable, and can be used together very effectively.  With the tax structure ever changing (higher taxes), the life policy is one of the last places to get tax free growth.  It is the only place (that I know of) that you get tax free growth and can remove the money (for any reason) and not pay taxes on it.  Life insurance products are becoming more popular by the day.  There are many types of permanant life products (whole, indexed, variable indexed, universal indexed).  Most of them allow the client to take advantage of the growth in the market without any risk of losing their money.  Wealthy people have been growing their money in life products for years, but this is available to anyone.  With the combination of asset protection and immediate estate formation, having life insurance should be a no brainer.

Disability Insurance

Another way to say this is, "income insurance".  We protect our home, car, health, and wealth.  Why wouldn't we protect our income.  There are many misnomers about disability insurance.  The first is that you must be disabled to make a claim.  The main criteria for making a claim is for a doctor to certify that you cannot do your job.  Once that is determined, you can make a disabilty claim.  It doesn't mean that you can't earn money, it just means that the injury restricts you from completing your daily tasks (and others like it).  The second myth is that disability is prohibitively expensive.  There are a myriad of factors in determining the premium: type of profession, income, current health, duration of benefit, and many others.  When you look at the benefit vs. the premium, it typically doesn't seem very expensive at all.  The main function of disability insurance is income protection. 

Long Term Care Insurance

Over 50% of Americans will use some sort of long term care in their lifetime.  The percentages increase with age.  Most people think of this insurance being used for nursing homes, and in home care for the elderly.  These are two of the reasons people utilize long term care insurance, but it goes much further than that.  If you have a long term care policy in place, you can make a claim on it if you lose just two activities of daily living (ie: eating, bathing, dressing, toileting, transferring (walking) and continence), regardless of age.  It is easy to see how the loss of a couple of these abilities could occur (accident, sickness,.....).  LTC insurance offer a great value to the policy holder, and if it is started early, the value is much more robust.  LTC policies give the client a pool of money that is available from the first day that the policy is in force.  They can be designed to grow at an agreed upon percentage (2-5% usually).  Over time the original pool can get much larger, and is at the clients' disposal (once a claim is made) until the pool of money is exhausted.  Skilled nursing care is not cheap, so a larger pool of money is desired. The main function of LTC insurance is asset protection. 

If you put all five of these products together, it is easy to see how each pillar has a place and function.  If you don't have each one of these in place, make a plan to do so.  We don't all have enough money to have complete protection today, but with a solid plan in place it can be done. 

Opinions, thoughts and comments are always appreciated.

 

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Todd Uzzell
www.insphereis.com/tuzzell
todd.uzzell@gmail.com 

Obama Care...the first shoe drops

The Affordable Care Act, a.k.a Obama Care has been a point of contention since its inception.  It was promoted as the answer to all of our healthcare woes, and we are quickly finding that not to be the case.  Regardless of where you stand, there are some undeniable truths. 

There are a few good things that have come from this legislation.  One of them is that there are no more lifetime limits in health care plans (you cannot exhaust your plan with high cost procedures).  Another benefit is that kids cannot be declined from their parents' plan (but the insurance company can charge more for "sick" kids).  The last major benefit that came along with the ACA is that all preventative care is covered %100 (wellness visits, shots, breast exams, colonoscopies, etc..)  The administration aportioned funds to each state to offer plans to people with pre existing conditions called the PCIP plan.  These plans provide quality coverage adn the premiums are based on age alone.  While these changes are good for the consumer on one hand, they are not free, and the additional funds must come from somewhere.

One way that the gov't decided to help pay for these benefits is with the 85/15 rule (this rule varies from state to state and by size of provider).  This rule states that health insurance providers must use 85% of premiums collected for medical claims, leaving 15% for administrative costs, commissions, and other non medical requirements.  As the new "guaranteed issue" products become available we will see taxes change, and overall costs rise. 

Now for the consequenses that I have seen thus far.  The first effect that is painfully evident is that the health insurance companies are tightening restrictions for new applicants in an attempt to build healthy books of business prior to the "guaranteed issue" products.  These underwriting guidelines have forced more people into the state plans (PCIP), which is why they were formed in the first place.  The latest word from the state of AZ is that they are suspending new applicants to the PCIP program due to budget concerns.  The big question is, "where do the sick people go now?"   The answer is to the emergency room...higher costs for the rest of us.   And this is just the beginning.


Opinions, thoughts and comments are always appreciated.

 

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Todd Uzzell
www.insphereis.com/tuzzell
todd.uzzell@gmail.com