Waterford, MI

The cost of health insurance has gone up significantly over the last decade, making it difficult if not impossible for smaller businesses to provide health care plans for employees. There are several types of health plans available, including HMO's, PPO's and POS plans. Some larger companies are able to offer their employees a choice of health plans or insurers where smaller companies are only able to offer one.

Here is an overview of the common types of health care plans:

HMO - Health Maintenance Organization

HMO's are generally the least expensive health care plan, but they are also the least flexible, requiring you to visit only those doctors who are in your HMO network. With these plans, you elect a primary care physician who is a part of the network. The primary care physician is your main health care provider and he has to give you a referral in order for you to see a specialist when necessary. This type of coverage requires a monthly premium and a co-pay of $5 - $10 for each doctor visit.

Prescription coverage varies and the percentage of prescription cost covered by the HMO is decided upon by the employer. The amount paid by the employee can be anywhere from a $5 co-pay on some drugs to a larger co-pay of almost the entire amount for others. It all depends on the plan that is worked out by the employer.

An HMO cannot require referrals for emergency care. They are required by law to cover emergency room visits; this is the only care they will cover without a referral from your primary care physician.

PPO - Preferred Provider Organization

A PPO is a more flexible plan than an HMO, allowing you to choose the doctor your visit. They do not require a referral from your primary care physician to visit a specialist, but the premium is generally higher for this type of plan. If you should visit a physician outside your network, you might have to pay for the treatment and file a claim with the PPO insurance provider for a partial reimbursement, generally up to 80%.

POS - Point of Service Plan

The characteristics of this type of plan are a blend of the HMO and PPO plans. You will be required to choose a primary care provider from the associated network. If you should visit a doctor outside of the network, you may be required to pay for the treatment yourself, unless you are referred by your primary care physician. In this case, the health plan will pay.

The insurance plan offered by an employer depends on the size of the company and the number of employees they have. The cost and flexibility of the plans vary. Usually the most flexible plan comes with a higher premium. If you have recently changed jobs and have new insurance coverage, you may end up having to change doctors if your doctor is not within the network of physicians who can accept your insurance.

This article was written by Ted Lewicki, a Farmers Insurance Agent who represents several insurance companies. Ted has been in the insurance business for nearly 50 years; he has been a member of the Better Business Bureau with no reported complaints. He is always available when his customers have questions or concerns or they need to review their insurance coverage. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

Long-term care, Senior Care Package, Family care package, Financial Planning, home Insurance, auto Insurance, life Insurance, health insurance, Insurance, annuities, liability insurance, motor cycle insurance, boat insurance

The cost of health insurance has gone up significantly over the last decade, making it difficult if not impossible for smaller businesses to provide health care plans for employees. There are several types of health plans available, including HMO's, PPO's and POS plans. Some larger companies are able to offer their employees a choice of health plans or insurers where smaller companies are only able to offer one.

Here is an overview of the common types of health care plans:

HMO - Health Maintenance Organization

HMO's are generally the least expensive health care plan, but they are also the least flexible, requiring you to visit only those doctors who are in your HMO network. With these plans, you elect a primary care physician who is a part of the network. The primary care physician is your main health care provider and he has to give you a referral in order for you to see a specialist when necessary. This type of coverage requires a monthly premium and a co-pay of $5 - $10 for each doctor visit.

Prescription coverage varies and the percentage of prescription cost covered by the HMO is decided upon by the employer. The amount paid by the employee can be anywhere from a $5 co-pay on some drugs to a larger co-pay of almost the entire amount for others. It all depends on the plan that is worked out by the employer.

An HMO cannot require referrals for emergency care. They are required by law to cover emergency room visits; this is the only care they will cover without a referral from your primary care physician.

PPO - Preferred Provider Organization

A PPO is a more flexible plan than an HMO, allowing you to choose the doctor your visit. They do not require a referral from your primary care physician to visit a specialist, but the premium is generally higher for this type of plan. If you should visit a physician outside your network, you might have to pay for the treatment and file a claim with the PPO insurance provider for a partial reimbursement, generally up to 80%.

POS - Point of Service Plan

The characteristics of this type of plan are a blend of the HMO and PPO plans. You will be required to choose a primary care provider from the associated network. If you should visit a doctor outside of the network, you may be required to pay for the treatment yourself, unless you are referred by your primary care physician. In this case, the health plan will pay.

The insurance plan offered by an employer depends on the size of the company and the number of employees they have. The cost and flexibility of the plans vary. Usually the most flexible plan comes with a higher premium. If you have recently changed jobs and have new insurance coverage, you may end up having to change doctors if your doctor is not within the network of physicians who can accept your insurance.

This article was written by Ted Lewicki, a Farmers Insurance Agent who represents several insurance companies. Ted has been in the insurance business for nearly 50 years; he has been a member of the Better Business Bureau with no reported complaints. He is always available when his customers have questions or concerns or they need to review their insurance coverage. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

Long-term care, Senior Care Package, Family care package, Financial Planning, home Insurance, auto Insurance, life Insurance, health insurance, Insurance, annuities, liability insurance, motor cycle insurance, boat insurance

The cost of health insurance has gone up significantly over the last decade, making it difficult if not impossible for smaller businesses to provide health care plans for employees. There are several types of health plans available, including HMO's, PPO's and POS plans. Some larger companies are able to offer their employees a choice of health plans or insurers where smaller companies are only able to offer one.

Here is an overview of the common types of health care plans:

HMO - Health Maintenance Organization

HMO's are generally the least expensive health care plan, but they are also the least flexible, requiring you to visit only those doctors who are in your HMO network. With these plans, you elect a primary care physician who is a part of the network. The primary care physician is your main health care provider and he has to give you a referral in order for you to see a specialist when necessary. This type of coverage requires a monthly premium and a co-pay of $5 - $10 for each doctor visit.

Prescription coverage varies and the percentage of prescription cost covered by the HMO is decided upon by the employer. The amount paid by the employee can be anywhere from a $5 co-pay on some drugs to a larger co-pay of almost the entire amount for others. It all depends on the plan that is worked out by the employer.

An HMO cannot require referrals for emergency care. They are required by law to cover emergency room visits; this is the only care they will cover without a referral from your primary care physician.

PPO - Preferred Provider Organization

A PPO is a more flexible plan than an HMO, allowing you to choose the doctor your visit. They do not require a referral from your primary care physician to visit a specialist, but the premium is generally higher for this type of plan. If you should visit a physician outside your network, you might have to pay for the treatment and file a claim with the PPO insurance provider for a partial reimbursement, generally up to 80%.

POS - Point of Service Plan

The characteristics of this type of plan are a blend of the HMO and PPO plans. You will be required to choose a primary care provider from the associated network. If you should visit a doctor outside of the network, you may be required to pay for the treatment yourself, unless you are referred by your primary care physician. In this case, the health plan will pay.

The insurance plan offered by an employer depends on the size of the company and the number of employees they have. The cost and flexibility of the plans vary. Usually the most flexible plan comes with a higher premium. If you have recently changed jobs and have new insurance coverage, you may end up having to change doctors if your doctor is not within the network of physicians who can accept your insurance.

This article was written by Ted Lewicki, a Farmers Insurance Agent who represents several insurance companies. Ted has been in the insurance business for nearly 50 years; he has been a member of the Better Business Bureau with no reported complaints. He is always available when his customers have questions or concerns or they need to review their insurance coverage. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

Long-term care, Senior Care Package, Family care package, Financial Planning, home Insurance, auto Insurance, life Insurance, health insurance, Insurance, annuities, liability insurance, motor cycle insurance, boat insurance

With the price of health care, insurance is a necessity. The cost of medical care is rising rapidly and few people are able to afford this luxury without insurance.

Types of Health Insurance Coverage:

Two common categories of health plans are indemnity plans and managed care plans such as health maintenance organizations (HMO's) and preferred provider organizations (PPO's) and point of service (POS) plans.

An indemnity plan offers the option of choosing your own doctors. They pay for your medical expenses, in full, in part, or up to a specified amount per day for a certain number of days.

Managed care plan provide broader coverage, but involve an arrangement between the insurer and a selected network of health-care providers. An HMO will require that a primary care physician coordinate all of your care, referring you to other specialists within their network, when necessary.

Whichever type of plan you choose to buy depends on your individual health care needs and your budget.

What costs are covered?

Health insurance plans vary, so you will want to ask questions and discuss your health care needs with your insurance agent. When comparing insurance plans, be sure to find out if they provide additional benefits that you may need, including prescription drugs, preventative care, mental health, maternity care and vision to name a few.

Out-of-Pocket costs:

In addition to the monthly premiums, you may have other associated costs like co-payments, coinsurance and deductibles. A co-payment is the amount you pay each time you visit the doctor or have a prescription filled. This is generally an amount much smaller than what it would be without insurance coverage. The deductible is the amount you pay toward your medical expenses during a one-year time before the insurance company picks up any costs. Coinsurance is the percentage of your medical costs that you pay after you have paid any deductibles.

Obtaining Health Insurance:

Some employers offer a group plan or you may belong to another affiliation such as a school or club. When these options are not available, you must purchase private health care. You can talk to your insurance agent about customizing an individual plan that meets your needs and fits your budget.

You want to look for a plan that offers the flexibility and benefits you need at the lowest cost. Like any major purchase, it is a good idea to shop around and get several quotes. Here are some questions you will want to ask:

• What are the cost of co-pays, deductibles and coinsurance?
• Does the plan offer the freedom to choose your own doctor?
• Does the plan cover the medical and health services you need?
• Is the insurance accepted by your current health care provider?
• Is family coverage available?
• Will the policy cover pre-existing conditions?
• Is there a waiting period? How long is the waiting period?
• Is it a requirement to have a complete physical first?
• If you're a smoker, will this have an effect the cost of premiums?

Also check with your state's department of insurance for information about the reputation of the insurance company. Regardless of which company or plan you choose, it's no good if your insurance provider is constantly refusing claims.

Cutting the cost of medical bills is a sure way to cut the cost of insurance. A healthy lifestyle is obviously the most effective way of cutting down on medical expenses. Take advantage of programs that offer free or reduced health screenings. Exercise regularly, eat right, have regular check-ups and avoid bad habits like excessive drinking and smoking.

If you take prescription drugs regularly, see if a three-month supply will save you money. Check online resources for ordering prescriptions through the mail instead of going to the pharmacy. Request a generic equivalence of your prescription when possible. Some pharmacists provide generic drugs automatically unless you or your doctor specifies different.

Carefully read your medical statements to be sure you are only paying for the services received. This is important even if your insurance covers the cost. You can help keep your premiums down by making sure your insurance company is not billed for a procedure you did not receive. Call your medical provider if you have any questions about your statement. If you don't get satisfactory answers, have your insurance company review your claim.

Married couples can save by being on the same plan rather than maintaining separate insurance. Most plans allow you to add your spouse within 30 days of getting married. Some will make you wait until the annual open enrollment period to make this change.

Keep track of your medical expenses; many of them are tax deductible if you itemize. Allowable medical expenses include doctor bills, eye care, prescriptions, lab fees, dental costs, hearing aids and other medical supplies.

If your insurance plan is limited or you don't have insurance, check with your medical provider, local clinics and hospitals to see about free health screenings such as cholesterol tests, eye exams, mammograms and cholesterol testing. Many of these are only offered once a year but it can't hurt to ask.

Some insurance companies cover preventative care such as annual check ups to help you stay healthy, therefore, requiring less in expensive procedures and treatments. Ask if they provide for discounts on vitamins or health club memberships. It also doesn't hurt to negotiate with doctors on their fees, especially if you have no insurance. Many doctors offer a courtesy adjustment to people who do not have insurance.

Insurance can be very expensive; so can medical care. Shop around, ask questions and live a healthy lifestyle to prevent health problems and save money on medical costs. Even if you have the best health coverage available, it's a good idea to stay healthy and avoid medical procedures that can be just as miserable physically as they are financially.

This article was written by Ted Lewicki, a Farmers Insurance Agent who represents several insurance companies. Ted has been in the insurance business for nearly 50 years; he has been a member of the Better Business Bureau with no reported complaints. He is always available when his customers have questions or concerns or they need to review their insurance coverage. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

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Most people are not familiar with gap insurance and why it is so important to have. You should consider purchasing gap insurance if you owe money on your vehicle so that in the event of an accident or theft, you will not have to continue paying on a vehicle you no longer have.

What is gap insurance?

Most people finance their new cars rather than paying cash for them. Gap insurance is a product offered by car dealers to ensure the vehicle is paid off in the event of theft or an accident resulting in a total loss (meaning the vehicle is not worth repairing). Gap insurance protects you from the obligation of continuing to make payments when the vehicle is no longer in your possession, leaving you free to purchase another car without having to pay off your previous car loan.

The value of a car quickly depreciates, beginning right when you drive the new car away from the dealership. Even if you make a large down payment, chances are that if you're in a serious accident or if your car is stolen, your insurance will not be sufficient to cover the balance owed on your car loan. You are responsible to cover any deficiency not covered by your insurance company. This is reason people purchase gap insurance, which covers the balance of the loan remaining after your insurance claim is processed.

Book Value:

You may think your down payment is sufficient to leave your loan balance at an amount less than the book value of your vehicle, but that depends on many different factors such as the length of your loan and how well the make and model of your car retains its value. Unlike your home, your vehicle will lose value over time no matter how well it is maintained. This means there is a good chance that you will owe a balance on the loan after your insurance claim has been processed unless you pay additional premiums for replacement cost or carry gap insurance.

Is Gap Insurance Worth the Cost?

Maybe you have been very lucky or you're an excellent driver who has never had an accident or your car has never been stolen. If this is the case, you've probably never considered purchasing gap insurance. Anything can happen that is beyond your control. Your car can be totaled if it is hit while sitting in a parking lot. If it happens to be in the wrong place at the wrong time, it can be stolen.

The cost of gap insurance is minimal when you consider the possibility of a total loss when you owe more than the book value of the vehicle. Once you have purchased your new car, there is no adding the gap insurance at a later time. Some dealers may allow a grace period or a certain time frame where the option of purchasing gap insurance is available, but it is easier to do before your contract is submitted to the bank.

How Gap Insurance Works:

When you purchase your new car, the salesperson should offer you gap insurance. If you experience an accident or theft, resulting in a total loss, the financial institution will handle the gap insurance claim as long as they have been notified that you carry the additional coverage. They will submit a claim to your gap insurance agent for the balance owed on the vehicle as soon as your auto insurance claim is paid.

Gap insurance does not provide cash to you to buy a new car, but it does pay off the vehicle you no longer have possession of. You will still need to purchase a new car, but at least you will not be obligated to pay off the loan on the vehicle you no longer drive.

How to get Gap Insurance:

Gap insurance is not generally purchased from your automobile insurance agent. In most cases, it is offered to you by the dealer when you purchase your vehicle. The amount of gap insurance you can purchase depends on the financial institution that finances the vehicle. It is generally added to your loan. Some dealers give you up to 30 days to purchase gap insurance if you should elect not to, and then change your mind after purchasing a new car.

When you buy your vehicle, the cost of gap insurance is based on the length of time you need it to cover the loan balance. The insurance is only for the time that you owe on a vehicle. If you pay off the car early, the lender may refund any unused portion of your premium.

If you should pay off your loan as agreed and do not need the gap insurance, the premium in not refundable. The policy expires when the loan is paid in full or if you should default on your payments and the car is repossessed.

Replacement Cost Insurance:

Some people choose to carry insurance with replacement cost. Be sure to check the price on this option as it is usually significantly more than the cost of gap insurance. Gap insurance is a short-term policy that benefits the lender only. Gap insurance pays only the amount due the lender after your auto insurance claim has been processed.

With replacement cost, you receive the replacement cost of a new vehicle less the amount due on your loan. The advantage is you will likely have money for a down payment on another vehicle, but the cost is higher than gap insurance and not all insurance companies offer this option.

In summary, gap insurance is essential if you are financing a new car. By purchasing gap insurance you protect yourself from having to make two car payments in the event of a total loss; one payment for the lost vehicle and one for the replacement vehicle you must purchase. You will generally have 30 days to change your mind if you do not purchase the coverage when you purchase the vehicle; however, some dealers do not offer this option. It is better to have the coverage and not need it than to need it and not have it, so be sure to make the right decision about gap insurance when you finance a new vehicle.

This article was written by Ted Lewicki, a Farmers Insurance Agent who represents several insurance companies. Ted has been in the insurance business for nearly 50 years; he has been a member of the Better Business Bureau with no reported complaints. He is always available when his customers have questions or concerns or they need to review their insurance coverage. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.