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Insurance & Money Management for Seniors
Insurance Information for Senior Citizens Provided
on Website
Insurance commissioners provide information by life
stages
June 21, 2006 A Website is available to help
senior citizens better understand the complicated subject of insurance.
It is sponsored by the National Association of Insurance Commissioners (NAIC)
and, they say, is designed to help consumers deal with "a maze of
options and cost considerations." It is organized by "life state needs"
and the "Empty Nesters" section is for senior citizens.
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A new survey for the site puts the emphasis on
health insurance, but all types of insurance are covered on the Website.
(Click
here to the section for senior citizens.)
Health insurance -- critical to the peace of mind
of most Americans -- has become increasingly complex and expensive,
according to The National Association of Insurance Commissioners (NAIC).
A maze of options and cost considerations -- from Health Maintenance
Organizations to Health Savings Accounts -- now confront consumers.
To help individuals clear up the confusion and gain
a better understanding of the costs of their coverage, the NAIC has
assembled useful information about health insurance -- all organized by
life stage needs -- on a new consumer education web site called Insure U
(click
to home page).
"The better consumers understand their health
insurance options, as well as their share of the costs for premiums,
co-pays and deductibles, the better they'll be able to plan for health
related expenses," said Alessandro A. Iuppa, NAIC president and
Superintendent of the Maine Bureau of Insurance. "We've created Insure U
to help educate consumers about insurance."
Recent research conducted by the NAIC indicates
that cost and confusion regarding health insurance are significant
issues for consumers across all life stages, even for those with access
to health insurance through their employers or government programs like
Medicare. According to the NAIC survey:
● Only 12 percent of older Americans
thought they were very likely to need long-term care, even though some
data indicate that 60 percent are likely to need long-term care at some
point. In addition, those seniors surveyed underestimated the cost of
long-term care by 100 percent -- saying that expense would come to
around $35,000 a year when the national average is closer to $70,000 per
year.
● Only 36 percent of young singles said they
knew the difference between an HMO and PPO. In addition, a high number
-- 18 percent -- said they had declined health insurance offered by
their employers as a way to save money on the portion of premiums they
are asked to contribute.
● More than half of respondents from established
families said they did not understand the terms under which they can
elect to continue their health coverage from their old employer if their
employment ends, as provided under COBRA (the Consolidated Omnibus
Budget Reconciliation Act). Specifically, they did not understand they
had to pay the full cost of their premiums, or that their coverage would
end after 18 months.
● Of those who have purchased medical discount
cards (which typically provide a discount off fees charged by
participating doctors), 18% said their experience had been very or
somewhat negative.
Tips to Help Consumers Lower their Health
Insurance Premiums
Health insurance -- whether provided by an employer
or purchased by individuals -- is expensive. Following are some ways
consumers can control their costs.
● Married couples in situations where both
spouses are offered health insurance through their jobs should compare
the coverage and costs (premiums, co-pays and deductibles) to determine
which policy is best for the family.
● Always stay in-network when possible, making
sure to get referrals and pre-certifications as required by the plan.
● Keep all receipts for medical services,
whether in- or out-of-network. In the event you exceed your deductible,
you may qualify to take a tax deduction for out-of-pocket medical bills.
● Consider opening a Flexible Spending Account
(FSA), if your employer offers one, which allows you to set aside
pre-tax dollars for out-of- pocket medical expenses.
Health Insurance Tips for Different Life Stages
The NAIC's consumer web site, Insure U, explains
the different types of health insurance and gives focused tips to
consumers based on their likely needs in different life stages. For
example:
● Empty Nesters/Seniors who are under 65
and no longer employed, but whose COBRA benefits have run out, should
research high deductible medical plans. At this life stage, consumers
may want to evaluate whether they still need disability insurance. Many
will want to decide whether long- term care insurance makes sense for
them (e.g., will they be able to afford the premiums into old age, when
most need to use such coverage).
● Young singles who may not yet have a full-time
job that offers health benefits should be aware that in a growing number
of states, single adult dependents may be able to continue to get health
coverage for an extended period (ranging from 25 to 30 years old) under
their parents' health insurance policies even if they are no longer full
time students. They should check with their state insurance department.
In addition, some colleges also offer graduates interim coverage for a
limited time. Another option: young people who can't afford the health
insurance offered by their employers should consider a lower cost,
high-deductible medical plan to cover catastrophic medical costs.
● Young couples expecting a child should make
sure they register their newborn with their health insurance provider
within the deadline required. They should also review their health plan
to see whether prenatal and neo-natal screening and tests, prenatal
vitamins, delivery costs (Cesarean and traditional) and what level of
pediatric care are covered.
● Established families with children should
consider Flexible Spending Accounts if available to help pay for common
childhood medical problems such as allergy tests, braces and
replacements for lost eyeglasses, retainers and the like, which are
often not covered by basic health insurance. All workers who lose or
change jobs should know their rights to continue their health coverage
under COBRA for up to 18 months.
"The more than 45 million consumers without any
health coverage are particularly vulnerable to being targeted by fake
companies selling discount health cards or bogus health insurance,"
noted Catherine J. Weatherford, NAIC Executive Vice President and CEO.
"All consumers should be aware that discount health
cards are not insurance plans, and therefore aren't regulated by the
state insurance department in some states. Before purchasing any kind of
health insurance, all consumers should protect themselves against scams
by taking a few minutes to stop, call their state insurance department
and confirm that the company offering the policy is legitimate and
authorized to sell insurance in their state."
For more information about insurance, consumers can
visit the NAIC's consumer education web site,
Insure U.
About the NAIC
Headquartered in Kansas City, Missouri, the
National Association of Insurance Commissioners (NAIC) is a voluntary
organization of the chief insurance regulatory officials of the 50
states, the District of Columbia and five U.S. territories. The
association's overriding objective is to assist state insurance
regulators in protecting consumers and helping maintain the financial
stability of the insurance industry by offering financial, actuarial,
and legal, computer, research, market conduct and economic expertise.
Formed in 1871, it is the oldest association of state officials. For
more information, visit NAIC on the Web at:
http://www.naic.org/press_home.htm
Source: National Association of Insurance
Commissioners
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