Did you ever buy something you thought you needed but found
out later you just wasted your money? Here are some examples of things
in our basement:
An exercise rowing machine
A food processor, used maybe half a dozen times since we
bought it maybe 10 years ago
A paint sprayer. Used once.
A kerosene heater for when the power goes out. Never used.
A propane camping stove for when the power goes out. Never
used.
Clothing that is too small, but was on sale. Purchased
while on a diet.
More exercise equipment, rarely used.
Health insurance is no different
Most people do the same thing when purchasing coverage:
Medical insurance benefits are
purchased that they rarely, if ever use and then they complain because
their insurance premiums are too high.
Health insurance plans with copays, multiple deductibles,
coinsurance are like junky basements filled with things you never use.
They should have purchased Bare Bones Health Insurance and pocketed the
savings.
What is Bare Bones Health Insurance?
Catastrophic health insurance coverage.
Designed to insure situations that are too expensive to
cover with
existing funds.
All inclusive - includes inpatient, outpatient & Rx
Eliminates wasted premium dollars for things that are
rarely used.
Has a clearly defined "out of pocket" limit for large
(catastrophic) medical claims.
Has very few moving parts.
What it is not.
It is not a limited benefit health insurance plan.
It is not a discount plan.
It is not a plan with artificial caps on benefits.
What does Bare Bones health insurance include?
A deductible, then 100% coverage
Everything you need and nothing you don't need.
Many plans include an annual wellness benefit at little or
no charge to you.
The chance to put more money in YOUR pocket rather than the
carriers pocket.
Why don't carriers promote Bare Bones health insurance?
Because profit margins are thin on Bare Bones health
insurance plans.
Carriers would prefer you buy the high mark up plans.
Are Georgia health insurance companies playing By the rules?
The insurance carriers get to keep all the premiums you pay
them.
The only way to get your money back is to have a major
healthcare claim.
You are not entitled to a refund for overpaying your
premiums.
At year's end, the insurance carrier will not send you a
thank you note or flowers. They will send you a renewal rate increase.
You do not buy a copay plan, you rent it.
Every time you use a copay the cash register rings in the
health insurance carrier's home office.
Carriers want you to buy benefits you rarely use so they
can increase their profits.
Carriers will offer “gingerbread house”
plans that look good but are really financial traps.
Every time your application is denied by a carrier you get
a black mark in your medical records (MIB).
You avoid hits on your MIB record
by having your agent prescreen your application BEFORE submitting to a
health insurance carrier.
When you play by the carrier rules, they win and you lose.
When you know how the game is played, you win.
Recently I was interviewed by a major carrier about bare bones health
plans. You can read the interview by clicking here.
Final Comments on Bare Bones Health Insurance
Finding the plan that is right for you can be challenging, but
that is only the first step. If you do not know the underwriting
outcome in advance (final rates and terms) your search is in vain.
Even when you find the right plan, with the right carrier, and
know what underwriting will do, your task has only begun.
You can manage your Bare Bones plan or allow it to manage you.
Once you are weaned off copays and lower deductibles, you need to
understand how to find the best pricing on medical services. Without
that information you will overpay almost every time.
For example: Need an appendectomy? You could easily pay over
$14,000 including a 3 day hospital stay. But by knowing how to use the
system the charges can be under $1,000.
How about medications? A popular medicine used to treat
Psoriasis will run $18,000 per year. When you know how to use your Bare
Bones plan your out of pocket can be under $3,000 per year.
I have over 30 years experience showing clients how to manage
Bare Bones medical insurance plans. My expertise and advice are freely
given to clients who allow me to be their agent of record.
