Affordable Health Insurance - How Do I Find the Right One, and What Coverage Do I Really Need?

I get questions everyday from people about health insurance, some are just getting out of school, about to get married and start a family, or getting a divorce and losing coverage, they have a need to know what benefits are available to them and how they work.

One of the most frequent questions I hear is "I don't mean to sound stupid but what does deductible mean?" Trust me, there are no stupid questions...if you don't know what someone is talking about ask them to explain it. A deductible is the set amount of money that you are required to pay yourself before the insurance company will pay on specific medical claims (like: hospital expenses, lab work, and x-rays). also, just to be clear your monthly premium does not go towards your deductible, you will always pay a monthly, quarterly or even annual premium, you have a choice when you are setting your plan up.

Shopping for health insurance can be a bit confusing. Another question I hear is "What is co-insurance?" Co-insurance is a percentage of money you will spend after you have paid out your deductible in medical claims for the year, most plans are 80/20,70/30, or 50/50 co-insurance. Let's look at the 80/20 co-insurance plan this means after you have paid your deductible then the insurance company will pay 80% of your on-going claims for the rest of the year, and you will pay 20%. For example a medical bill of $5000.00 would be processed this way. If your deductible is $2000.00 you would pay the first $2000.00 and then the insurance company would pay 80% of the remaining $3000.00 which would be $2400.00 leaving a balance of $600.00 for you to pay.

Most plans being sold today are PPO's which stands for preferred provider organizations. These providers have agreed to charge a set rate for their services. These set rates can give you huge savings in the discounted prices, for example a lab bill of $900.00 when processed by the insurance carrier has a unapproved amount of $600.00 which is like a red tag sale huge discount...now the bill is only $300.00 and the rest of it is a wash, you do not owe it if you used the PPO Network. See the savings.

When you are looking for a health plan you need to ask questions. You will be asked questions as well, like what is your gender, height and weight, zip code, if you or your spouse or girlfriend is pregnant, do you smoke or use tobacco products, do you have any pre-existing conditions? All of these questions will determine what rate you will be given as well as what coverage will be offered to you.

Some questions you need to ask are: What is the waiting period for pre-existing conditions, is maternity covered, what is the lifetime maximum of the policy (the lifetime maximum is the maximum amount of money the insurance plan will pay in medical bills for you as long as you have the policy), which network of providers do you offer? This information is critical to you so that you can make an informed choice of coverage. There are many variables in the health insurance market, and all plans are not created equal.

The plans offered are not going to have everything covered, that is a myth. Dental and vision is not an automatic benefit and neither is maternity. You need to be aware that some pre-existing conditions will not be covered at all, or they could have a waiting period before they are covered. Sometimes, the pre-existing condition will cause you to be declined. If you are declined, don't be discouraged. Just because one insurance company declined you does not mean they all will, keep trying with other carriers. Insurance underwriting is not the same, there are variables with every carrier.

Do you want a Dr. co-pay or a prescription co-pay, be aware not all plans come with these features...and they do drive your premium up.

Most plans do not offer mental health or drug addiction benefits, if they do the benefits are usually limited. It is best to read the limitations and exclusions section of the brochures and policy's to make sure you have a clear understanding of what is covered and what is not.

Rate guarantee's vary as well, and a birthday will cause an adjustment in your rate regardless of the rate guarantee.

I hope that this has been helpful information. Always remember to ask questions, it's how we learn.

What Will Your Taxes Tell You About Your Financial Health This Year?

As tax season approaches, it becomes time for people to take a more realistic look at their financial situation. 2009 was truly a bad year for everyone but we may not know how badly America was hit until after April 15th.

Though tax refunds are wonderful, they often only serve as temporary band-aids. If you've found yourself in debt this year, it is most likely due to an event or situation that won't be going away—like a divorce, pay cut, layoff, or medical emergency.

People often start to feel safe again after they've used a tax refund to get caught up but, a few months down the road, these same families find themselves in just as much or more debt and without a tax refund to magically solve their financial woes.

Luckily, there are solutions that don't also have to be temporary. Chapter 7 bankruptcy in Missouri and Illinois not only stops any repossessions or wage garnishments, but it can also get rid of your unsecured debts. Then, the next time you get a refund for your taxes, you can truly rejoice in the extra "oomph" it will bring to your financial life.

Not everybody finds themselves with a nice, big tax refund. In fact, many people will find that they still owe money to the government—and being in debt to Uncle Sam is not an ideal situation. The government doesn't necessarily have to follow the same rules that creditors do. The government can do whatever it takes to get a debt repaid including levy your bank accounts, garnish your wages, and go after your other property.

So, what can you do if you suddenly find yourself in tax debt? If you have income tax debt that is 3 years old or older, you may be able to get rid of it completely under certain circumstances. If your income tax debt is within the last 3 years, you can take care of that with Chapter 13.

A Chapter 13 bankruptcy will put your taxes into a repayment plan that you can handle. More importantly, filing Chapter 13 bankruptcy stops any more interest or penalties from being added to your debt. Chapter 13 bankruptcy can assist with other kinds of tax debts. If you are behind in your real estate taxes, it may not be long until you see your home being sold at a tax sale. After spending years building memories, raising your children, and truly turning your house into a home, the last thing you want for you and your family is to see it auctioned in 21 days.

Chapter 13 bankruptcy can protect you and your family by stopping the sale and protecting your property. These debts can also be worked into a repayment plan that will fit into your budget and ensure that you keep your home.

Problems can arise quicker than you think and come as a complete surprise. You may not even know that you are in financial trouble until you take a look at your taxes. If, after your taxes, you find that you are in financial turmoil, research what bankruptcy may be able to do for you.