Planning how to pay for medical expenses

Transcription

1 Bernard Health Planning how to pay for medical expenses A guide to finding the right advisor for you

2 How many types of advisors are there? Seven. Bernard Health Team Member Insurance company representative State Health Insurance Assistance Program representative Independent health insurance broker Financial advisor Human Resources Representative Independent car and homeowner insurance broker Which is the best for you? Read on 2010 Bernard Health Page 2

3 First: Don t worry, you re not the only one who feels like they need a trusted advisor for this stuff! With health insurance becoming more and more complicated, it often makes sense to seek out a trusted advisor to help you figure out what to do. You may need help with any number of issues, including: 1. What do I do about these medical bills? 2. What is the best way for me to receive Medicare benefits? 3. Should I sign up for COBRA, or is there a better option out there? 4. Which of my company s options should I sign up for, or is there a better individual plan for me or someone else in my family? Second: How to use this whitepaper Here, we will go through all of the different options you have when it comes to selecting the best advisor to help you plan how to pay for medical expenses. A few things you ll notice: 1. Like most things in life, each option you have for an advisor in this area has both positives and negatives. 2. We re going to go through each advisor option, and explain those positives and negatives. 3. While we hope some readers conclude that a Bernard Health Team Member is the right choice for them, we know we are not necessarily the right choice for everyone. Our hope is that you find this to be an objective assessment, and useful in your search for a trusted advisor for you and your family Bernard Health Page 3

4 Option 1: Bernard Health Team Member You either set an appointment or just walk in to the Bernard Health retail store looking for help. Each Team Member is licensed and trained specifically and exclusively to help clients with the following four Bernard products, all of which include full analysis of options and set-up or sign-up with the private carrier, provider, or government program (if applicable and necessary): 1. MediGuidance : objective advisory on which of the 14 Medicare strategies to adopt, based on your situation. 2. InsurAdvise : objective advisory on what health insurance strategy you should adopt. Includes analysis of any group option offered through your employer, as well as private and government options. 3. COBRACounsel : objective advisory for those who have COBRA as an option, in addition to other private individual and government options. 4. Med BillWatch : objective advisory in resolving medical bill confusion, including coordinating communication and resolution among the providers and insurance companies involved in your situation. If something goes wrong, you can call us or just come to the store to find us. We re located at 720 Thompson Lane in Nashville, Tennessee (across from Vanderbilt 100 Oaks and next to Baja Burrito). While we strive to have one Team Member be the point for contact for existing clients, all Bernard Health Team Members are able to pick up where the previous one left off, whenever necessary! 1. Advisor is not paid based on whether you buy insurance, so you know they have your best interest in mind % of business comes from giving good advice in this area; focus breeds excellence 3. No matter what happens to your advisor, you re always going to have a place to go 4. Face-to-face environment allows you to bring in COBRA & Medicare mailings, and sort through it with someone 5. No sense of obligation to buy other products such as life insurance, as Bernard advisors do not offer them 6. Bernard is independent and able to work with all insurance companies 1. Similar to how people pay fees to tax advisors, you have to pay a fee for a Bernard advisor 2. Bernard advisors do not sell life, long-term care, auto, or home insurance, so they would not be a one stop shop for all insurance needs Bernard Team Members are salaried, and the majority of Bernard s revenues come from the fees charged for the four products listed above (prices start at $99). Any commissions the insurance companies pay to Bernard Health are used to subsidize the fees Bernard has to charge in order to provide this service Bernard Health Page 4

5 Option 2: Insurance company representative One big positive: Because this advisor is either paid commissions or the insurance company can afford to pay him/her a salary from the premiums of the policies sold to you, it costs nothing to work with one of these advisors Insurance companies offer comprehensive websites and also number support to help you evaluate their products. Live phone support can often help you when you have specific questions about your own policy and situation. Insurance company representatives can help you with a wide array of their own products, including: 1. Individual/family health insurance policies 2. Medicare supplements 3. Medicare Advantage plans (MA Plans) 4. Medicare Advantage plus Part D plans (MAPD) 5. Prescription Drug Plans (PDP s) 6. Life insurance 7. Cancer insurance 8. Critical illness insurance 9. Accident insurance If something goes wrong, you can call the number again and ask for the person you worked with before. Or, the carriers often have comprehensive systems so that a new representative can look at notes from your prior call and help you. Sometimes you can also find ways to log issues through online forms located on their websites. 1. The advisor is not independent, and so can only offer you their company s policies. Note: if you already know you only want to work with a certain carrier, this may not be a big deal. 2. If you have questions about your COBRA packet or Medicare materials, it can be frustrating trying to show this advisor those materials over the phone. 3. If you do not make your decision to buy over the phone in the first conversation, it can be difficult getting the same advisor back on the phone. You do not have to pay this advisor a fee. Insurance company representatives are paid by the insurance companies they represent. They are sometimes salaried, and can also sometimes be paid commissions based on the product that you buy. The insurance company is also paid by the monthly premiums that you pay to it when you buy their product Bernard Health Page 5

6 Option 3: State Health Insurance Assistance Program representative The Tennessee State Health Insurance Assistance Program (SHIP) is a statewide program that provides free and objective counseling and assistance to persons with questions or problems regarding Medicare and other related health insurances. In Tennessee, SHIP operates through the state s nine Area Agencies on Aging & Disability (AAADs). These agencies offer a variety of services besides SHIP, all aimed at helping persons who are elderly and/or have disabilities to live better lives. SHIP is funded by the Centers for Medicare and Medicaid Services (CMS), an agency of the federal government under the Department of Health & Human Services. On its website ( SHIP says: We work to give accurate and helpful information. When we are not able to answer a question or solve a problem, we refer to other agencies and resources. We do our best to give consumers the help that they need. Tennessee s SHIP has a number that you can call if you need to speak with someone again. It is If they are not able to take your call, they have a voic system whereby they invite you to leave your name and number and they will call you back. 1. Because this advisor is a volunteer or paid by the government, it costs nothing to work with one of these advisors 2. They are not contracted or licensed with any insurance companies at all, so their independence gives some people peace of mind that they are getting objective advice 1. This advisor can only help with general Medicare questions, not other issues related to planning how to pay medical expenses. 2. This advisor may not be licensed and generally cannot help with questions regarding specific insurance companies or plan types. They cannot also take you all the way through the sign-up and set-up process with a carrier. 3. There is no financial incentive for this advisor to see things through for you. You do not have to pay this advisor a fee. This program is funded by the government, and also relies on volunteers. So these advisors are either paid salaries by the government or they are not paid at all Bernard Health Page 6

7 Option 4: Independent health insurance broker One big positive: because this advisor is paid commissions by a health insurance company for selling a policy, it costs nothing to work with one of these advisors. The best way to start a conversation with this advisor is to use the internet and Google for health insurance or Medicare help. Some websites collect information you input on their websites, and then sell that information to several independent brokers who will call you directly to offer help. That way, you are not limited to just working with one possible broker, but you can instead interview several over the phone before deciding which one to use. These brokers will often have quote engines of their own, and can run rates with multiple carriers in an effort to meet your needs. Communication can take place all over the phone and via correspondence. Or, if you happen to find a health insurance broker in your area, you can get together for a meeting. Generally, you will end up with at least an and phone number of whoever sold you the policy you ended up buying. You can call or them back and request help. 1. Since these advisors make their money from commissions, they make more money when you buy a more expensive policy. 2. This advisor usually is not able to help you with plans that don t pay commissions, such as Guaranteed Issue Plans and Pre-existing Condition Insurance Plans. 3. It can be difficult to see this advisor in person when you have questions. You do not have to pay this advisor a fee. This advisor is paid commissions on the volume of premiums he or she generates. So, as a general rule, the more expensive the policy is that you buy, the more money this advisor is paid Bernard Health Page 7

8 Option 5: Independent car and homeowner insurance broker Insurance brokers are increasingly focusing on multiline sales, which means they are licensed to sell more than one kind of insurance. The insurance agent who sold you your home insurance or car insurance may have a health insurance license as well. In the spirit of becoming a comprehensive resource for clients, these advisors aim to do it all. If you ask this advisor about health insurance, he or she will be able to run quotes and help you begin the application process. If you have a relationship with an insurance broker whom you trust, you may have their phone number, , and the physical address of their insurance office. If this advisor is local, he or she may be available by appointment if you have questions about your health insurance application or coverage. You do not have to pay this advisor a fee. This advisor is paid commissions on the volume of premiums he or she generates. So, as a general rule, the more expensive the policy is that you buy, the more money this advisor is paid. Generally, however, the amount of income this advisor makes from health insurance is very low. Those who offer to help in this area do so because they hope it will help them get new auto/homeowner clients, or retain existing ones. 1. Because this advisor is paid commissions by a health insurance company for selling a policy, it costs nothing to work with one of these advisors. 2. There may be value derived from the convenience of buying all of your insurance (life, home, auto, property & casualty, long term care, disability, health) through one broker. 1. These advisors sell an average of 2.5 individual health insurance policies annually not enough to be experts, licenses notwithstanding. 2. Since these advisors make their money from commissions, they make more money when you buy a more expensive policy. 3. These advisors usually are not able to help you with plans that don t pay commissions, such as Guaranteed Issue Plans and Pre-existing Condition Insurance Plans. 4. These advisors usually do not know how to help clients with Medicare or COBRA questions Bernard Health Page 8

9 Option 6: Financial advisor In addition to selling mutual funds, annuities, securities, and comprehensive financial planning services, many financial advisors are licensed to sell insurance. This can include life insurance, disability, long term care, and health insurance. If you ask your financial advisor about health insurance, he or she may be able to run quotes independently, or they may run quotes using a resource they have available within their firm. If you have a relationship with a financial advisor whom you trust, you may have their phone number, , and the physical address of their office. If this advisor is local, this advisor will likely be available by appointment if you have questions about your health insurance application or coverage. You do not have to pay this advisor a fee. This advisor is paid commissions on the volume of premiums he or she generates. So, as a general rule, the more expensive the policy is that you buy, the more money this advisor is paid. Generally, however, the amount of income this advisor makes from health insurance is very low. Those who offer to help in this area do so because they hope it will help them get new financial advisory clients, or retain existing ones. One big positive: because this advisor is paid commissions by a health insurance company for selling a policy, it costs nothing to work with one of these advisors. 1. Since these advisors make their money from commissions, they make more money when you buy a more expensive policy. 2. This advisor usually is not able to help you with plans that don t pay commissions, such as Guaranteed Issue Plans and Pre-existing Condition Insurance Plans. 3. This advisor knows a lot about financial products, but usually only helps a few clients with health insurance every year. 4. These advisors usually do not know how to help clients with Medicare or COBRA questions Bernard Health Page 9

10 Option 7: Human Resources Representative Human Resources (HR) representatives often wear several hats. They are responsible for employee recruiting, hiring, training, and retention. They often manage performance management, coaching, leadership development, team building, employee relations, discipline, and termination processes as well. In addition to all of this, HR representatives manage employee salary and benefits, which include health insurance. Occasionally, HR departments will have a dedicated representative who is a benefits specialist benefits specialists often do a good job of answering questions about the details and mechanics of the employer group health insurance plan. Medicare, medical bills, individual health insurance, and sometimes COBRA fall outside the scope of most HR departments. Depending on the size of your employer and the nature of your business, HR representatives are usually available in person or over the phone when you have questions or concerns about your company s group health insurance plan. You do not have to pay this advisor a fee. Your employer pays this advisor to manage the administration of your group health insurance policy. 1. Because this advisor is paid a salary by your employer, it costs nothing to work with one of these advisors. 2. They are not contracted or licensed with any insurance companies at all, so their independence gives some people peace of mind that they are getting objective advice 1. This advisor usually cannot answer questions about Medicare, COBRA, medical bills, or individual health insurance options beyond what is offered by your employer. 2. This advisor usually is not licensed to help you run health insurance quotes or analyze options 3. This advisor is not typically experienced in helping employees transition to other types of health insurance when they leave their former employer Bernard Health Page 10

11 Conclusion Lots of options As you can see, the good news is that you have an array of options. To summarize a few questions to ask yourself when choosing the best advisor for you: 1. Is independence from an insurance company important to me? 2. Is it important to me that my advisor specializes in health insurance as opposed to other types of insurance and financial products? 3. Am I willing to pay a fee for independent advice in this area? Bernard is a unique option If you decide that Bernard is not the advisor for you, we hope you ve at least concluded that we offer a unique option. Why? We are the only independent advisors whose livelihood depends exclusively on giving excellent advice in this area. Exclusive focus hopefully gives us an advantage when it comes to giving you the best advice. If that is important to you, we hope you ll find that the peace of mind you get with Bernard is well worth our fee. Furthermore, whenever possible, we aim to save you money worth many times what you pay us Bernard Health Page 11