ObamaCare is HERE!

ObamaCare is here…
The healthcare landscape has changed.

Dave Ramsey’s ELP

As Dave Ramsey’s Endorsed Local Provider (ELP), our goal is to make you aware of these changes.

We have tools available to help answer your questions:

• Do I qualify for a subsidy?
• What would my penalty be if I don’t have health insurance?
• Should I buy a plan now or wait for 2014?
• Should I keep my current plan?

You have more options available now than you will have next year.

MyObamaCareCalculator.com

For an individual / family PRE-OBAMACARE QUOTE, click on your state:

Alabama                             Montana
Alaska                                 Nebraska
Arizona                               Nevada
Arkansas                            New Hampshire
California                            New Jersey
Colorado                            New Mexico
Connecticut                        New York
Delaware                            North Carolina
Florida                                North Dakota
Georgia                              Ohio
Hawaii                                Oklahoma
Idaho                                  Oregon
Illinois                                  Pennsylvania
Indiana                                Rhode Island
Iowa                                   South Carolina
Kansas                                South Dakota
Kentucky                            Tennessee
Louisiana                            Texas
Maine                                 Utah
Maryland                            Vermont
Massachusetts                   Virginia
Michigan                             Washington
Minnesota                          West Virginia
Mississippi                          Wisconsin
Missouri                             Wyoming

Obama-Car

While talking about healthcare reform with my wife, our teenage son started asking questions. We tried to answer him in a way he could understand, but we just weren’t getting through. Health insurance is a foreign language to him. However he is dreaming about which car he will soon purchase. So we introduced ObamaCare to him by way of the Affordable Car Act… a.k.a. Obama-Car:

Obama says his reforms will include additional mandated essential health benefits AND reduce health insurance costs by $2500 per family. That’s simply impossible. That would be like requiring all 2014 cars to be either hybrid or fully electric (more energy efficient), include run-flat tires with electronic low-pressure warnings (better fuel economy), HID headlights (better night vision), GPS (less fuel wasted getting lost), and satellite radio (because it sounds good) at a lower price.

Yes, these OPTIONS are nice if you have the money to pay for them, but they should remain OPTIONS, not REQUIREMENTS.

Instead of a Chevy Cruze starting at $17,000 the new Obama-Car compliant version (such as the Chevy Volt) would be priced around $34,000.

Obama claims these new cars will only be paid in full by the “millionaires and billionaires” because anyone making less than 400% of the poverty level will have some (or all) of their car subsidized by the government.

Now let’s talk about used cars…

Let’s say you like your existing car.  As long as you owned it before March 23, 2010, you would be allowed to keep it. You cannot make any changes to it or it would no longer be “grandfathered” and you would be forced into buying a new Obama-Car next year or pay a penalty.

If it doesn’t get good enough gas mileage or include all the new Obama-Car required Overpriced Bureaucratically Authorized Mandated Add-ons (OBAMA), then you would also be penalized.

Our son is glad Obama-Car doesn’t exist. He can save his own money to purchase any car he chooses… as long as Dad (not Obama) approves of it!

Dislaimer:  This article was never meant to suggest Obama-Car legislation is needed or should ever become law.

Prepare For ObamaCare

Dear Nancy Pelosi,

After 3+ years and 20,000+ pages of additional clarifications…
WE STILL DON’T UNDERSTAND WHAT’S IN IT!

Senate Minority Leader Mitch McConnell (R-KY) points up at ObamaCare

What was Obama texting during Dr. Benjamin Carson’s HSA explanation?

Here is proof that Obama has heard the truth about the right way to reform healthcare:

Dr. Carson’s low income / Medicaid proposal:
“Instead of sending it [big pot of government money] to some bureaucracy, let’s put it in their HSAs. Now they have some control over their own healthcare. And what are they going to do? They are going to learn very quickly how to be responsible.”

The real question is what was so important that Obama needed to be texting during Dr. Carson’s excellent HSA explanation?

Here are a few of my initial guesses:
– This just ruined breakfast. What’s for lunch?
– Need a distraction NOW… How about a round of golf with Tiger?
– I hope this guy doesn’t run for president
– Who scheduled this guy?
– FIRE HIM!

So what are some of your guesses?
(the best ones will be posted here)

More Employers Steer Towards Consumer-Driven Health Plans

Renewing your health insurance used to be easy. Now it seems to take all year. Your employees seem to be healthy, but your renewal rates disagree. You contact your old consulting firm. Utilization is too high…again. Emergency room visits are too frequent…again. Generic prescription substitution is too low…again. You are told to increase co-pays and raise deductibles to create the necessary “steerage” to help hold down your health care costs. The result? Double-digit premium increases…again. You are reminded of the definition of insanity: doing the same thing over and over again expecting different results.

What other options are there?

By now you’ve heard of “consumer-driven” health care plans. At this time there are two versions showing promise, Health Reimbursement Arrangements (HRA) and Health Savings Accounts (HSA). They are designed to lower health insurance costs by engaging employees to take a vested interest in their own health care expenses.

There are significant differences between how these plans work. The employer is the owner of the HRA. The more successful HRA plans are designed to allow a portion of the unspent accounts to roll over from year to year as an incentive to the employee not to spend them. There are no requirements for which type of insurance you use with an HRA. The money that is not spent stays with the employer if an employee leaves.

The employee is the owner of their HSA. Both the employer and the employee can fund this account. HSA funds can be used to help offset all medically related expenses including a tremendous number of things that do not count towards the insurance deductible such as dental, vision, and even some over-the-counter medications. In order to establish an HSA the employee must be covered exclusively by a High Deductible Health Plan (HDHP). The federal government has placed specific guidelines for deductibles and out-of-pocket maximums for these plans to be qualified. Since these plans have a higher deductible than most co-pay plans there is usually a significant premium savings. The concept is to place the premium savings in the tax deductible HSA account and use these dollars to pay your smaller expenses at the insurance company’s negotiated PPO discount while maintaining the insurance plan for major expenses. There are now many examples of the premium savings being large enough to cover most or all of the HDHP deductible!

The HSA accounts can be opened through local banks and credit unions. As long as your HSA qualified health insurance plan is effective by December 1st 2012 you have until April 15th of the following year to deposit up to $3,100 individual or $6,250 family into an HSA account for 2012 and $3,250 individual or $6,450 family for 2013. If you are 55 or over then you can deposit an additional $1000. Account balances roll over year to year. HSAs are the only products that offer triple tax advantages; tax-deductible deposits, tax-free interest earned, and tax-free withdrawals as long as they are spent on qualified medical expenses. Since the employees own their HSA account there is a significant difference in how this money is spent. Imagine your employees all having a vested interest in not spending their health care dollars. This is why self-funded plans tend to benefit most.

The city of Iola, KS is a perfect example. They switched all of their employees to an HSA plan in 2004. Their utilization has decreased substantially which has allowed the city to deposit half of the employee’s individual deductible into their HSA account each year. Employees have embraced the new plan and are seeing their HSA not as an entitlement to be spent but as a retirement account that should be saved whenever possible. The city now has their health insurance costs in check.

The new generation of consultants will need to be focused on educating businesses and their employees offering workshops and educational tools to help employees understand how these plans work.

Otherwise you can keep your current consultant and accept your insurance premium increase… again!

(Originally printed in the Kansas City Star July 17, 2007)

Consumer Driven Lab Tests!

There are several exciting things about Consumer Driven Health Care plans that are proving to reduce costs. One of the best things is pricing transparency.

HSA consumers here in the Kansas City area (and nationwide beginning in October with over 1500 new blood draw locations) have access to special pricing for lab work. Show them your HSA debit card and you can save 10% off your already discounted lab tests!

HSA Coupon

For more information about Metabolic Research Laboratories along with all the tests available call 913-345-0285 or visit

www.24hrblood.com

Here is a direct link to some of the tests that HSA participants will receive special discounts on

Direct To Consumer Pricing

We enjoyed having Metabolic Research Lab representatives Heather & Dr. Al with us on “Insurance Talk” radio show Saturday August 27th, 2011. Click here to listen to the entire show podcast.

TAX TIME! Maximize your Tax Deductions for 2010

Click HERE for latest update

Take your personal HSA tax deduction on line 25

Since this blog is dedicated to offering the most up-to-date Health Savings Account information, we want to make sure you maximize your HSA for 2010. Remember, if you were covered by an HSA qualified High Deductible Health Plan (HDHP) on or before December 1st, 2010 then you have until you file your taxes (or April 15th 2011) to finish up your 2010 contributions and get a 2010 tax deduction.

2010 Contribution limits:
Single – $3050
Family – $6150
Catch up contribution (age 55 or older) $1000 per person*

2011 Contribution limits:
Single – $3050
Family – $6150
Catch up contribution (age 55 or older) $1000 per person*

*If both are 55+ then both have to open HSA accounts for both to participate in catch up contribution

These limits are also stated on the U.S. Department of Treasury website.

These maximum contributions will not be pro-rated if your HSA qualified health insurance plan (HDHP) was either in force all 12 months of 2010 OR if it was in force by December 1st of 2010 AND remains in force all 2011.

Your tax deduction is based on how much you DEPOSIT into your HSA, not how much you spend.

You do not have to itemize to get the tax deduction.

You do NOT have to pay your eligible expenses out of your HSA.

HSA Eligible Medical Expenses

You are required to keep receipts of your eligible expenses in case the IRS audits you. You can choose to reimburse yourself at a later date up to the medical receipts you have accumulated without being subject to 20% penalty or taxable income.

The triple-tax advantages (tax deductible deposits, tax free interest earned, and tax free withdraws for eligible medical expenses) only available with HSAs make them an important tax planning tool that is unmatched when used properly.

Other statistics show that nearly half of the 10 million Americans covered by the required HDHP insurance plans have not established their HSA account, and therefore are not participating in the tax savings they offer. Although OFM Benefits is one of the nation’s premier HSA focused insurance agencies, there are probably some of you that have procrastinated setting up your account. If you have been covered by your HDHP before or on December 1st, 2010 and haven’t set up your HSA, it’s not too late!

OFM is proud to recommend HSA Bank because of their great combination of low fees, competitive interest rates, and a large number of investment options.  With over 350,000 HSA accounts and over $1 billion in HSA deposits, HSA Bank has established themselves as one of the nations leading HSA administrators.  They also recently eliminated all setup fees.

As many Americans are facing huge health insurance premium increases and revenue decreases, HSA qualified plans are becoming even more popular. The average household pays over $13,000 per year for health insurance premiums! We feel HSA qualified plans offer the best value in healthcare today.

If you are self employed or a business owner and would like to receive the premium savings and tax deductions only available with HSAs, please visit www.missionHSA.com

http://www.missionHSA.com

Scott Borden
Host of “Insurance Talk with Scott & Mike” Saturday mornings 7-8 on KCMO Talk Radio 710
  OFM Benefits Consulting, LLC
6400 Glenwood, Suite 307
Overland Park, KS 66202
913-432-2732
913-432-2061 fax

I guess this is why they call them “Cadillac” health insurance plans… they cost about as much!

Unfortunately Massachusetts passed healthcare reform back in 2006 that is eerily similar to Obamacare 2010. The huge premium increases necessary to cover these madate laden policies is causing a new set of problems in Massachusetts.

It looks like many Massachusetts municipalities are paying extremely high health insurance premiums. Some of these “Cadillac” plans cost over $40,000 per year! Everything over $27,500 is going to be subject to additional taxes which will result in…. EVEN HIGHER PREMIUMS!

Here is a link to three Cadillac models you can purchase for under $40,000. At least you can take a few years to pay off a Caddy…

Buy a brand new Cadillac for less than some people pay for health insurance every year!

Since government regulations such as guaranteed issue have made health insurance so affordable in Massachusetts, why don’t we have Washington pass similar legislation for our whole country?

Oh wait…

Let’s pass the biggest tax increase in American history and call it “HealthCare Reform”!

If / When this administration offers enough bribe dollars to pass healthcare reform, although the “benefits” don’t start for 4 years… get ready to start paying for it immediately. There are over 19 tax increases identified (so far) in the 2409 page bill being voted on tomorrow.

Welcome to the Biggest Tax Increase in U.S. History - Business Insider

Although there will be additional hurdles to overcome before this monstrosity becomes law, I am fairly certain it will pass. Wave cash in front of a politician and they’ll quickly forget who they are really working for. I just hope Americans will make them pay this fall.

They’re trying to pass a healthcare plan written by a committee whose chairman says he doesn’t understand it, passed by a Congress that hasn’t read it but exempts themselves from it, to be signed by a president that also hasn’t read it with funding administered by a treasury chief who didn’t pay his taxes, and financed by a country that’s broke.  What could possibly go wrong?

Obamacare

I’m for fixing our current healthcare system, not destroying it! Obamacare will NOT encourage choice and will greatly increase costs in the private sector because of new mandated coverages. Meanwhile Obamacare plans on rolling out a national health plan to “compete” with the fatally wounded private sector spending money without any fiscal responsibility (this is Washington you know). Once the private companies are all gone… then the rationing begins!

Here is a simple petition that expresses a different approach to healthcare reform.

www.freeourhealthcarenow.com

Are HSAs too confusing?

Hello! My name is Scott Borden I am a self-employed independent health insurance agent. I purchase health insurance for my family of 5. If I worked for a big company they would be paying for a portion of my health insurance. There are advantages and disadvantages to being self-employed. No help for health insurance is a big disadvantage.

Is there a smart way to purchase health insurance without breaking the bank?

There are millions of self-employed Americans out there facing the same situation. Over the past 10 years since I first found Medical Savings Accounts (MSAs), I have worked with hundreds of health insurance agents trying to get them to recommend the lower cost Health Savings Account (HSA) qualified plans to self-employed people and businesses. Still today very few health insurance agents agree with me. The most common complaint I hear from agents is that HSAs are too confusing and too complicated. People just don’t understand them. They are too risky. You name it, I’ve heard it all.

Are HSAs really difficult to understand?

I’ll let you decide…

Which health insurance plan should I choose for my family of 5 living in Kansas?

Plan 1: Blue Cross Blue Shield of KC Preferred-Care Blue Premium
Monthly premium $725
$500 calendar year deductible per person usually with a maximum of 3 decuctibles per family
Co-Insurance – 80% up to the stop loss of $10,000
Example: $10,000 x 20% = $2,000 co-insurance out-of-pocket
Primary care physician $20 co-pay (some plans charge more for specialists)
Prescription medication $12 tier 1 generic (350 of which are now $4)
Prescription medication $35 tier 2 formulary name brand
Prescription medication $60 tier 3 non-formulary name brand
Emergency Room $100 co-pay then deductibe and 20% co-insurance
Maximum out-of-pocket $2,500 per individual (NOT including co-pays)
Maximum out-of-pocket $7,500 per family (NOT including co-pays)

Plan 2: Humana Autograph Total + Rx HSA
Monthly premium $365
$5,000 family calendar year deductible
Maximum out-of-pocket $5,000 per family
Take premium savings ($360/month) and deposit into HSA
Use HSA to pay smaller bills
If I don’t spend my HSA ($4,320 in the first year), I KEEP IT!

Which is more confusing?  That wasn’t very difficult to understand, now was it.  Plan 2 simply requires a deductible be satisfied then covers all remaining expenses including inpatient, outpatient, physician visits, and prescription drugs for my entire family at 100% for the rest of the calendar year. 

Which would be the best to own in a healthy year?

The lower premium plan always saves money in a healthy year.
 
Which would be the best to own should I come down with a major disease?

In order to decide which plan “would be the best” we have to calculate which plan would cover the disease at the lowest out-of-pocket expense. Does my monthly premium play a role in this calculation? ABSOLUTELY!

With Plan1 we have to know how many physician visits, how many prescription drugs, how many outpatient treatments, how many emergency room visits, was surgery involved, etc. The policy claims “$2,500 maximum out-of-pocket per person” but unfortunately that didn’t include the co-pays. It is possible in this type of a situation to have literally thousands of dollars worth of co-pays above and beyond the “$2,500 maximum out-of-pocket”

Plan 1 summary:

       $8,700 annual premium ($725 x 12)
    +$2,500 “maximum out-of-pocket” (deductible + co-insurance)
    +$1,000 (hypothetical) additional co-pays for additional services
    + $0 assuming no additional expenses for the rest of the family
   = $12,200 TOTAL COST

Plan 2 summary:

      $4,380 annual premium ($365 x 12)
    +$5,000 family maximum out-of-pocket
   =$9,380 TOTAL COST

Once again – requires a little study and math, but not very difficult.

I own the Humana plan now with a $7,000 family deductible that costs me just over $300 per month. Once money starts accumulating in the HSA then feel free to go to a higher deductible which saves even more money. This grows my HSA even faster!

Unfortunately most health insurance agents don’t want to take the time to educate the public on a lower cost way of managing health care expenses. The lower monthly insurance premiums results in lower commissions.  Why should they work harder to make less?  As long as 95% of the public is willing to keep paying rediculous health insurance premiums they will keep on selling them. 

If I hear one more health insurance agent saying HSAs are too complicated for people to understand I am going to…
I feel much better now!

Did I mention that HSAs offer tremendous tax advantages also?