Take a look at these three common mistakes people make when shopping for group health insurance.
Mistake 1: Using Paper Applications to Apply or Prescreen for Group Health Insurance
Instead of filling out paper applications, consider prescreening your group health insurance on-line. One important benefit of online prescreening is that it generally allows groups to prescreen with more insurers than they otherwise may have prescreened with had they filled out paper applications. Prescreening with several insurers using paper applications oftentimes involves filling out either generic applications or multiple applications. If an insurer returns a favorable prescreenusing a “generic” or alien paper application, generally the insurer will want the group to complete new original applications to achieve final acceptance.
Also, there is a benefit from online prescreeningrelative to future applications. In a subsequent renewal period, all applicants who have applied in the past need only update their applications to reflect new information since the last online prescreen or online application. This helps ease the process of upon renewal as it is less labor intensive for both applicants and administrators.
Given the convenience of prescreening with multiple insurers via one online application, combined with the ease of updating applications in the future, we believe the online prescreening and application method is superior to paper applications.
We have a service available to new and current clients that allows them to prescreen and/or apply for group health insurance “online.” Through this system, we email a link to your group insurance administrator that enables a connection to the online application service provider. The group administrator is provided links, user names and passwords for each of the applicants in the group. This information is forwarded to the applicants using each applicant’s personal email account. An applicant logs on to the application service through his or her own email. If an employee does not have email or Internet access, it may be possible to log on through a computer at the employer location.
The online application service allows us to select which insurers the group would like to prescreen. The system filters applications from those prospective insurers and asks the necessary underwriting and medical questions via the online portal. Upon completion of the online application, the applicant signs the application with his or her computer mouse. The information is then electronically sorted and populates the specific applications of the various insurers with whom we are attempting to prescreen.
Provided a group becomes issued and accepted, participating insurers accept online applications as final applications. Information from the application process is kept on secure computer file and can be made available for future prescreens or applications. If a group decides they want to prescreenagain in the future, rather than completely start the process all over again, employees need only update their medical history since the last prescreen or application.
Please call our office at 513-891-9888 with any questions regarding online prescreening. If you are looking at prescreening onlinefor the first time, we recommend that you obtain preliminary group medical quotes to determine if there is any possibility of premium savings (we can provide you with a form for this purpose). If there is a significant differential between the preliminary rates and your current group rates, it may indicate the possibility that conducting an online prescreen of your group is worthwhile.
Mistake 2: Choosing a Too Low Health Insurance Deductible
Higher deductible health plans may be the way to go these days. Even with non-Health Savings Account plans, higher deductible health plans can provide a way to manage premium costs.
The increasing cost in health care is an important issue for everyone these days. There are a variety of factors involved in those increasing costs. While cost shifting contributes significantly to rising health insurance premiums, the overall demand for better and more widespread health care is certainly the biggest driver behind the rising cost of health care.
Cost shifting reflects the “catch-up” that hospitals and medical providers must do in order to make up for delivery of unreimbursed or under-reimbursed care. Unreimbursed expenses include expenses incurred such as indigent care or unrecovereddeductibles and co-pays from insured patients. Under-reimbursement occurs when care is provided at a reimbursement rate that is below the actual cost. When reimbursement rates are set, they are intended to reflect the anticipated “trend” in health care costs. Sometimes trend outpaces the predictions thus leading to reimbursements that are below the actual cost of providing health care services. In either case, health care providers are eventually forced to raise prices to consumers in order to make up for these unreimbursed expenses. When they do, they must pass the cost on to the customers who do pay or are insured through private or government sponsored insurance.
Higher deductible health insurance plans, whether established through individual health insurance or employer based group health insurance plans, reflect a lower premium to the insured in trade for the risk of the insured being responsible for a higher out of pocket liability. The simple adage is that, in most cases, “…premiums are certain and claims are not.” With higher premium lower deductible plans, the higher bill for premiums comes every month. But with a lower premium, higher deductible plan (i.e. $1500, $2500, $5000, etc.) the lower premium comes every month, but an insured may not necessarily have the claims.
Circumstances vary, but when possible to bank the premium difference by using a higher deductible plan, you may come out ahead. Health Savings Accounts provide an enhanced means of setting aside the difference in premiums with tax advantages. But, even non-qualifying higher deductible plans can provide substantial savings. Some higher deductible plans may be available with reasonable office visit co-pays that make going to the doctor for minor in-office care more convenient while reserving larger deductibles and co-pays for more significant outpatient and inpatient care.
Consider all of your health insurance options carefully! But, be sure you take a look at higher deductible plans as you weigh your health insurance alternatives.
Mistake 3: Not Reviewing Other Life and Health Insurance Policies at the Same Time.
The process of shopping for group health insurance almost always entails – should you decide to prescreen or apply – the filling out or completion of health insurance applications, whether on paper or online. During this process, employees and insureds will be required to gather their health history and contact information for their various health care providers. It is a very similar process when someone applies for other types of individual insurance such as disability or life insurance.
Since each applicant is going through this process already, they may as well consider whether their other coverages may be improved upon at the same time – particularly their individual life or disability insurance. When applying for such individual insurance products, generally the addition of a para-med physical may be required.
Contact our office at 513-891-9888 and we can shop preliminary rates for individual coverages. If you feel you have an opportunity for savings, we will provide you with application forms and help in arranging any paramedical exams, if required.