Home » Posts tagged 'Health Insurance'
Tag Archives: Health Insurance
To benefit from insurance coverage, youâll need to pay a premium. A premium is a payment to your insurer that keeps your coverage in place. Insurance companies determine your premium by deciding what the risk is to insure you. Hereâs a breakdown of the basics to help you understand what a premium is, why you have to pay it, how it works and ways to reduce your costs.
What Is a Premium?
An insurance premium is effectively the cost of your insurance, whether for health, auto or life insurance. Most companies allow you to pay the annual premium via monthly installments. However, some companies may require you to pay your premium on an annual basis or a semi-annual basis. Some may even want the entire insurance premium up front. Companies often decide they want the insurance premium up front if you have previously had your insurance policy canceled for non-payment.
The price of a premium is usually decided by an actuary or underwriter who takes a base calculation. The base calculation determines what the risk is to insure you. After the base calculation, the company may discount it based on your health, driving record, location and other personal details. This is all based on the type of insurance youâre looking to secure, too.
Your premium may also be determined based on your insurance history. Every insurance company uses different criteria to determine premiums. Some companies use insurance scores based on personal factors like credit rating, car accident frequency, personal claims history and occupation. If your personal factors are attractive to certain companies, you may want to secure a plan with one of them. It could mean a lower cost premium.
You may also pay more money for higher amounts of coverage, whether youâre purchasing life insurance, car insurance, health insurance or any other kind of insurance.
The value and condition of what you are insuring can also change the amount of coverage you need. For example, if youâre a healthy 28-year-old with no kids, your life insurance premium may be very inexpensive because you might not need a large policy. However, the price could increase as you age and your health and family situations change because you may need more coverage.
How Can You Lower Your Rates?
The type of coverage you purchase affects your premium. If you get more comprehensive coverage with your insurance policy, it may raise your insurance premium. For example, if you insure your vehicle for all risks, you may have to pay more than if you insured it with a policy that doesnât include collision coverage.
Deductibles can reduce your insurance premiums, as well. An insurance deductible is the cost you pay before the insurance company pays anything. If your car is insured and you have a $1,000 deductible, you have to pay $1,000 before the insurance company will begin to cover any costs. If there are $3,000 in damages to your vehicle, you would have to pay $1,000 and the insurance company would pay the other $2,000. As a general rule, the higher your deductible, the lower your premiums.
In the case of health insurance, taking on a higher deductible, higher co-pays or longer waiting periods may lower your costs. However, if you can afford a plan with a lower deductible, you may want to take that. Lower deductible health plans offer customers more predictable prices for higher amounts of coverage.
Your homeowners insurance premium may be affected by the coverage limits you choose, your deductible amount, optional coverages you select, your homeâs age and condition, your claims history and your credit rating.
Car insurance premiums may be affected by your age, your credit score, your driving record, the age of your car, the type of coverage you chose, coverage limits you select, where you live and drive, and how often you drive.
Your life insurance premium may be affected by the amount of life insurance coverage you buy, the type of life insurance policy you select, the length of your policy, and your age, health, and life expectancy.
Some companies, specific policies or types of coverage have insurance limits. An insurance limit is the maximum amount of money the company will pay. Typically, the higher your insurance limit, the higher your premium. Itâs also the inverse of a deductible. You pay the part of the claim or claims thatâs more than the limit on your policy.
Insurance limits can be on a per occurrence basis or on an aggregate basis. For example, a per occurrence basis could be a $20,000 insurance limit on bodily injuries per person, per car accident. An aggregate insurance limit might be a $100,000 limit on construction costs in the event of a natural disaster.
Car insurance laws and policies typically list liabilities as a set of three numbers that stand for the coverage limits when youâre responsible for an accident. If your numbers were 22/66/15, your insurance would cover $22,000 for bodily injuries per person, $66,000 in total bodily injury coverage per accident and $15,000 for property damage per accident. For personal injury protection, collision and comprehensive coverage, the numbers are listed as a single amount for each type of coverage. Your state may have specific minimum limits for certain coverages, so make sure youâre getting a fair rate.
Healthcare laws often change, and many lifetime and annual health insurance limits are illegal. However, some health insurance policies still list annual limits or limits on the number of times certain treatments will be covered, such as acupuncture, chiropractic services and orthotics. Companies may also place limits on prescription medication to keep costs down. There may be policies such as âstep therapy,â which requires you to try less expensive drugs first, or quantity limits, such as only covering 30 pills in 30 days.
Your homeowners insurance policy will often list separate limit amounts for different types of coverage. The limit amounts for liability coverage â in case youâre sued by someone for property damage or injuries that occur on your property â may be different than the limit amount for damage to your home and personal property. Make sure you review all of your homeowners insurance coverage limits, such as the amount it may cost to rebuild your home (dwelling coverage), liability coverage and personal property coverage.
Itâs important to shop around for insurance because different companies have different target clients. You may be the target client for one company, but not for another. That means your premium may be lower with one company than another. The price you pay for your insurance may include taxes or fees, as well. And these could differ from company to company. Before shopping around, call your insurance company and see if theyâre willing to lower your premium.
In addition, insurance companies may decide to pursue a new market segment. That can lower rates on a temporary basis, or on a more permanent basis if that works for the company. In either case, you can get a better deal on your insurance if you are part of the demographic that insurance company wants to attract.
The best insurance company for you may not be the best insurance company for your parents or your best friend. It all depends on your age, location and many other factors.
The Bottom Line
Your insurance company will assess the financial risk of insuring you. The greater they perceive that risk to be, the more your premium will cost. Itâs important to make sure you let your insurance company know all the ways in which you are a low-risk or lower risk client in order to get premium reductions. After shopping around, youâll be able to find the insurance policies that are best for your financial situation.
Tips for Reducing Insurance Costs
- Consider all of the insurance options available based on your individual circumstances. This can help you save money. A comprehensive budget calculator can help you understand which option is best.
- If you need extra help weighing your insurance options, you might want to consider working with an expert. Finding the right financial advisor that fits your needs can be easy. SmartAssetâs free tool will match you with financial advisors in your area in five minutes. If youâre ready to learn about local advisors that will help you achieve your financial goals, get started now.
Photo credit: Â©iStock.com/skynesher, Â©iStock.com/kate_sept2004, Â©iStock.com/AndreyPopov
The post A Beginnerâs Guide to Insurance Premiums appeared first on SmartAsset Blog.
The New Year brings new opportunities to seek restitution for wrongs committed in previous months and even years. Take a look at this monthâs list of class-action settlements to see if any of these offers will let you add some cha-ching to your pocket as you ring in 2021.
UnityPoint Health: Data Breach
Anyone who was affected by UnityPoint Health data breaches in 2017 and 2018 may be eligible for up to $7,000 plus a year of free credit monitoring and identity theft protection.
Also known as Iowa Health System, the lawsuit claims UnityPoint was hit by a data breach that began in November 2017. The multi-hospital delivery and health care system purportedly found the ongoing breach in February 2018, but failed to notify affected persons until April or even July of 2018.
The lawsuit alleges that more than 1 million names, addresses, phone numbers, billing information and health information were exposed, costing patients and consumers time and money to cancel credit cards and fight identity theft and fraud.
UnityPoint denied wrongdoing, but agreed to a $2.8 million settlement. UnityPoint Health said it contacted all affected consumers whose personal information was exposed during the 2017 and 2018 data breaches.
File your valid claim by March 2, 2021 to receive a year of free credit monitoring and up to $1,000 in âordinaryâ expenses, including a maximum of three hours of time valued at $15 per hour and documented out-of-pocket expenses you incurred due to the data breaches, such as postage fees and internet charges. You also may claim up to $6,000 in âextraordinaryâ expenses related to identity theft or fraud caused by the data breaches, including false tax returns and interest on loans you had to take out because of canceling your credit card accounts.
Kalispell Regional Healthcare: Data Breach
You could be eligible for expense reimbursement, cash payments and free credit monitoring services as the result of a $4.2 million class-action settlement.
In October 2019, Kalispell Regional Healthcare notified patients that hackers were able to access employee email accounts and used those accounts to access the personal data of patients.
In response, a lawsuit alleged Kalispell didnât do enough to protect against hackers. The company did not admit to any wrongdoing, but agreed to settle for $4.2 million.
Cyber thieves reportedly gained access to the following patient data:
- Â Â Names and addresses
- Â Â Medical record numbers
- Â Â Dates of birth
- Â Â Telephone numbers
- Â Â Email addresses
- Â Â Medical history and treatment information
- Â Â Dates of service
- Â Â Treating physicians
- Â Â Medical bill account numbers
- Â Â Health insurance information
- Â Â Social Security numbers
If you were notified by Kalispell Regional Healthcare that your personal information might have been compromised, you could be eligible for reimbursement of up to $15,000 in expenses related to the breach. You also may be eligible for up to five hours of time at the rate of $15 per hour.
In addition to reimbursement, you can choose between five years of Experian credit monitoring services valued at nearly $720 and an alternative cash payment of up to $100. Exact cash payment amounts will vary but will not exceed $100.
Claim forms are due by Feb. 25, 2021.
BMW: Failing Coolant Pump
If you owned or leased specific 2007 through 2019 models of BMW vehicles, you could claim up to $1,000 in reimbursements.
A class-action suit alleged the affected vehicles were equipped with electric coolant pumps that once they failed, caused engines to overheat, resulting in the need for expensive repairs. The lawsuit further alleged BMW knew of the problem but did not fix it or reimburse owners and lessees for resulting repairs.
Car owners and lessees may receive a maximum of $1,000 in out-of-pocket repair costs for parts and labor required to replace one failed electric engine coolant pump and a thermostat, if such replacement was needed within the first seven years or first 84,000 miles the vehicle was in service. In addition, BMWâs New Passenger Vehicle Limited Warranty may be extended to seven years or 84,000 miles.
BMW also will replace an electric coolant pump that fails for one year after the settlement becomes effective, no matter how old the vehicle is or how many miles it has on it.
We have the complete list of models covered and all the details you need to make a claim by the Feb. 18, 2021 deadline.
10/17/19 @ 9:00 PM
12/31/20 @ 1:55 PM
12/29/18 @ 8:07 PM
12/21/20 @ 4:02 PM
Sports Research: Deceptive Supplement Labeling
If you bought Sports Research Corporationâs Premium MCT Oil products or Turmeric Curcumin C3 Complex products, you could be eligible for a portion of a settlement over allegations of deceptive labeling practices.
The premium-priced products that were labeled âpacked with beneficial fatsâ and capable of fostering ânaturalâ energy purportedly were falsely advertised. The MCT Oil merchandise contained 14 grams of saturated fat that did not allow it to be considered âhealthyâ as part of a diet. In addition, the ânaturalâ energy supposedly induced by the use of raw coconut materials allegedly underwent processing.
The MCT Oil products were also promoted as containing antibacterial, anti-microbial and anti-viral properties, while the Turmeric Curcumin C3 products were marketed as anti-inflammatory products that provided antioxidant benefits.
If you bought Sports Researchâs MCT Oil products or Turmeric Curcumin C3 products between Jan. 9, 2016 and Jan. 9, 2020, you could be eligible for either a $7 voucher to be used toward the purchase of any Sports Research product or $3 cash.
File your valid claim by Feb. 23, 2021 to receive your healthy dose of restitution.
Chime Digital Bank Service Disruption
Were you unable to access your Chime deposit account between Oct. 16-19, 2019 because of a service disruption? If so, you could be eligible for a portion of a $1.5 million class-action settlement.
The intermittent outage lasted for several days, according to the lawsuit, which resulted in late bill payments and disrupted purchases. The suit also says Chime failed to warn users of the outage and only communicated via Twitter.
Chime did not admit to any wrongdoing, but agreed to the class action settlement.
Compensation is divided into two tiers. Tier one allows consumers who suffered a loss due to the service disruption to receive a cash payment up to $25 with no proof of such loss. Tier two provides payments up to $750 for those who can provide documentation.
We have all the details and how to file your claim by the Feb. 15, 2021 deadline.
BMW: Defective Timing Chain
Former owners and lessees of certain 2012 to 2015 models of BMW vehicles could be eligible for reimbursement for allegedly defective timing chain components.
A lawsuit that alleged certain BMWs equipped with N20 and N26 engines were prone to experiencing damage and needing costly repairs because of defective timing chains.
BMW owners and lessees may qualify for either a reimbursement program or a prospective repair program.
The reimbursement program provides between 40% and 100% reimbursement for vehicle repairs depending on the mileage at the time of service. No cap exists for repair reimbursement if the repairs were completed at a BMW center. However, repairs done at an independent service center are capped at $3,000 for timing chain modules and oil pump drive chain modules and at $7,500 for engines.
A separate program provides reimbursement for future repairs. Some of these claims will be covered under vehiclesâ existing warranties while others will be reimbursed for between 40% and 75% of the total repair costs. Vehicles must be taken to a BMW center.
Expenses are only eligible for reimbursement if the damage was caused by failure of the timing chain or oil pump drive chain modules. Vehicles that have over 100,000 miles or have been in service for over eight years are not eligible.
Check out the details, the list of covered vehicles, and the claim form that must be submitted by the estimated deadline of March 18, 2021.
Navy Federal Credit Union: Unfair NSF Fees
Navy Federal Credit Union has agreed to a $16 million settlement over allegations it charged unfair non-sufficient funds (NSF) fees to its customers.
Navy Federal customers who were charged two or three NSF fees on one transaction between Jan. 28, 2014 and Oct. 27, 2020 may be eligible for cash payments or account credits.
Multiple fees purportedly were incurred when a merchant presented a transaction for payment several times after an initial rejection. With each attempt, Navy Federal allegedly tried to process the payments again, which resulted in an additional NSF fee. This practice of charging the additional NSF fees violated Navy Federalâs own terms of its agreements, according to the suit.
Exact awards will depend upon the number of NSF fees charged and the number of customers who agree to participate in the settlement.
No claim form is required because cash payments or account credits automatically will be distributed, but you have until Feb. 24, 2021 to object to the settlement or to ask to be excluded from it.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
A lot of us donât like to think about this, but inevitably there will come a time where we will all need help taking care of ourselves. So how can we start preparing for this financially?
Many people opt to purchase long-term care insurance in advance as a way to prepare for their golden years. Long-term care insurance includes services relating to day-to-day activities such as help with taking baths, getting dressed and getting around the house. Most long-term care insurance policies will front the fees for this type of care if you are suffering from a chronic illness, injury or disability, like Alzheimerâs disease, for example.Â
If this is something you think youâll need later on, itâs crucial that you donât wait until youâre sick to apply. If you apply for long-term care insurance after becoming ill or disabled, you will not qualify. Most people apply around the ages of 50-60 years old.Â
In this article, we will discuss long-term care insurance, how it works and why you might consider getting it.Â Â Â
How long-term care insurance works
The process of applying for long-term care insurance is pretty straight forward. Generally, you will have to fill out an application and then youâll have to answer a series of questions about your health. During this point in the process, you may or may not have to submit medical records or other documents proving the status of your health.Â
With most long-term care policies, you will get to choose between different plans depending on the amount of coverage you want.Â
Many long-term care policies will deem you eligible for benefits once you are unable to do certain activities on your own. These activities are called âactivities of daily livingâ or ADLs:
- Incontinence assistance
- Getting off and/or on the toilet
- Getting in and out of a bed or other furniture
In most cases, you must be incapable of performing at least two of these activities on your own in order to qualify for long-term care. When itâs time for you to start receiving care, you will need to file a claim. Your insurer will review your application, records and make contact with your doctor to find out more about your condition. In some cases, the insurer will send a nurse to evaluate you before your claim gets approved.Â
Itâs very common for insurers to require an âelimination periodâ before they start reimbursing you for your care. What this means is that after you have been approved for benefits and started receiving regular care, you will need to pay out of pocket for your treatments for a period of anywhere from 30-90 days. After this period, you will get reimbursed for your out-of-pocket expenses and from there.
Who should consider long-term care insurance
Unfortunately, the statistics are against our odds when it comes to whether or not we will eventually need some type of long-term care. Approximately half of people in the U.S. at the age of 65 will eventually acquire a disability where they will need to receive long-term care insurance.Â Of course, the problem is, long-term care can be really expensive. Unless you have insurance, youâll be paying for your long-term care completely out-of-pocket should you ever need it.
Your standard health insurance plan, including Medicare, will not cover your long-term care. The benefits of buying long-term care insurance are that:
- You can hold on to your savings: Many uninsured seniors have to dip into their savings account in order to pay for their long-term care. Because itâs not cheap, many of them drain their life savings just to be able to pay for it.
- Youâll be able to choose from a larger variety of options: Being insured gives you the benefit of being able to choose the quality of care that you prefer. Just like with anything else, you get what you pay for when it comes to healthcare. Medicaid offers some help with long-term care, but youâll end up in a government-funded nursing home.Â
How to buy long-term care insurance
If youâve recently started thinking about shopping for long term-care insurance, youâll want to keep a few things in mind:
- Do you mind being insured on a policy with an elimination period?
- Can you afford all of the costs including living adjustments?
- Are you interested in a policy that covers both you and your spouse, otherwise known as âshared careâ?
There are a few different ways to go about getting long-term care benefits. You can either buy a policy from an insurance broker, an individual insurance company, or in some cases, your employer. Obtaining long-term care insurance through your employer is probably going to be cheaper than getting it as an individual. Ask your employer if itâs included in your benefits.Â
Many people also opt to shop for hybrid benefits insurance policies. This is when a long-term care policy is packaged in with a standard life insurance policy. This is becoming a lot more common in the world of insurance. Keep in mind that the approval process may be slightly different for a hybrid insurance policy than of that of a stand-alone long-term care insurance policy. Make sure to ask about the requirements before you apply.Â
Best long-term care insurance packages
There are not very many long-term care insurance companies that exist as there once was. Itâs hard to wrap our heads around purchasing something that we donât yet need. However, here are a few examples of companies that offer competitive long-term care packages:
- Mutual of Omaha: This company offers benefits of anywhere between $1,500 and $10,000. While the main disadvantage of this companyâs packages is that they do not cover doctorâs charges, transportation, personal expense, lab charges, or prescriptions, you CAN choose to receive cash benefits instead of reimbursements. This company also offers discounts for things like good health and marital status. This companyâs insurance policies offer a wide range of options and add-ons so you can make sure that all your bases are covered.
- Transamerica: This companyâs long-term policy, TransCare III, is good if you donât want to hassle with an elimination period. If you live in California, this may not be the best choice for you because Californiaâs rates are a lot higher than the rates in other states. Your maximum daily benefit can be up to $500 with this program, with a total of anywhere between $18,250-$1,095,000.Â
- MassMutual: Popular for their SignatureCare 500 policy which comes in both base and comprehensive packages, is a long-term care and life insurance hybrid. This is very appealing to many seniors wanting to kill two birds with one stone. This company also has a 6-year period as one of their term options, which is pretty high.
- Nationwide: This program sets itself apart from many other programs available because it allows you to have informal caregivers like family, friends, or neighbors. You will receive your entire cash benefit every month and it is up to you to disperse the funds as you would like. Currently, this company does not have their pricing available online, so you will need to speak with an agent to discuss prices.
Understanding Long-Term Care Insurance is a post from Pocket Your Dollars.