I’ve not been keeping up my blog. I am going to work to try to do so from now on. I really appreciate it when I get suggestions as to what subjects you’d like to see covered.

Just email me or comment.

Thank you.

Can a person do ANYTHING to protect themselves from huge health insurance premium increases? Well, the best thing a person could do is control the cost of medicine. But since you and I cannot do this, and apparently the ones in charge of things cannot figure out that this is the fundamental problem, what can you and I do to protect ourselves?

As many of you know, I am a big believer in Health Savings Accounts paired with a High Deductible Health Plan. If a person does a cost analysis of what the cost of heatlh care is and compares having a plan like this with a typical PPO or HMO plan, in all but the rarest of examples they will come out ahead … and in most cases … way ahead.

But you’d think that having high deductible health plan (which generally means no utilization except in catatrophic situations) would mean that a person would not be getting rate increases. Sadly, that is not the case.

Here is how it works: if you are a health insurance company and you think that you are going to have some major costs shifted from the government to you [the big bad insurance company] you are going to act to protect yourself.

Since rate increases have to be approved, its prudent to plan ahead. What are the chances that a company is going to get a 200% increase approved? What are the chances that you, the consumer, would keep the policy even if it was approved? Zero, Zilch on both counts.

But what if they raised the premium 21% this year, and 17% next year, and 23% the following year, etc.? What then?

Might this be approved? Yes.

Might you keep it? Yes.

Lets create an example: You have a plan for your family with a $10,000 or higher deductible and no drug benefits. Would that qualify as “high deductible” to you? (I usually mean less than $5,000 when I use that term). Now imagine for a moment that you are paying about $252.00 per month for this $10,000 deductible plan with no drugs benefit.  And the company raises your premium on this plan that you’ve never utilized by 21%. How much is that?

Try $635 per year!

But what if you had a “normal” PPO plan and you were paying about $1,000 per month and the company raised your premium 21%.

That’s an increase of about $2,500 dollars. How does $635 dollars sound in comparison?

These examples I am giving are based on real scenarios. [I rounded some numbers but the basic facts are as illustrated].

So whereas I can not solve the problem for the country as a whole - I can help you – as an individual/family find reasonable solutions to the dilemmas created by politicians.

Call me or email me for more information. I can be reached at 209-498-3010 or 209-390-1163.

I am looking forward to talking to you.

Michael Myers

The health care field really cannot be compared to other fields. For some reason, people in general and those in the field seem to operate with the belief that they should never ask – or be asked – what does this cost?

We ask that question about everything else. Who orders anything without knowing the cost? And if Store “A” charges $150.00 and Store “B” charges $105.00 for the same item … what then? Well, perhaps you just like Store “A” and so you pay $150.00, or perhaps they bring you some other advantage. That is fine. But, then many would no doubt purchase the item from Store “B”, and that too is fine. But in either case, the person knew what they needed to know to make a decision they could be happy with.

But when it comes to health care .. many just won’t ask. This in spite of the fact that in a study done in 2007, HealthMarkets Inc. found that of those who did ask, a whopping 55% were able to get a reduction in the charge from their physician.

At the same time, in a recent study commissioned by Extend Health, Inc., only 13% had ever even asked about a lower price. Only 1 in 3 Americans said they had even discussed what the costs were going to be! Peter Gaillard, HealthMarkets’ vice president commented that “when it comes to health care prices, Americans seem to have lost the will to shop.” And the study confirmed that the more a person earns, the less likely they are to ask the questions.

In this age of higher and higher health care costs, I wonder what the price of other items would be if most people were unwilling to shop for the best price. If the local market could charge you $50 for a 10 lb. sack of potatoes, would they? Would people pay it? Or do you think that such an idea is ludicrous?

Yet when it comes to Health Care – that is exactly what is happening, and I believe that the price of Health Care today is about as out of touch with what it rightfully should be as if we were expected to pay $50 for a 10 lb. sack of potatoes.

Health Insurance is only the funding to pay for Health Care. The cost of Health Insurance is in direct relationship to the actual cost of Health Care. Is it any wonder that the cost of Health Insurance is out of control?

I can’t solve this problem, but I do encourage you to ask about the cost of Health Care. I can also help my clients focus in on what a person should pay for in health insurance and what they should just pass on. Call me with questions [209-390-1163 or 855-MPMYERS].

I’m here to help.

Michael Myers

Life insurance is one of those things that most of us need. That’s an easy statement.

1. But what kind of life insurance?
2. How much life insurance?
3. What if I have health problems?
4. What if I am old?

The thing about life insurance is that the name is a little antiquated and a bit misleading. I once had someone ask me; “Why is it called life insurance, it’s death insurance – isn’t it?” Well, ah, ah, ah, yea. Well, kind of.

You see life insurance allows our loved ones to keep going in the case of our death. It handles things for us, that we use to handle ourselves. Now it can’t replace us. But it can replace what we brought to the table … economically.  But did you know if can do a lot more than that?

Depending on what we buy, here is all the things that can be covered by “life insurance”.

• Long Term Care for us – giving us money to pay for our care should we need assistance. This is helpful not only for when we are old – but if we are injured or suffer disease that requires we have help with daily needs for a period of time.
• If we were to get Cancer or some other dreaded illness, our health insurance may pay for health care, but what pays for our living expenses if we can’t work? That’s right … life insurance might do this.
• And life insurance can be useful in our Retirement Planning, Saving for College, and many other uses.
• In its simplest form, it may pay for our final expenses … which can be much more than most people are aware of.
• Life insurance also cares for short term needs – business needs – buy-sell agreements and the list just goes on and on.

If you have not had your life insurance needs looked at in the last five years, you owe it to yourself to spend some time doing this. I offer a free evaluation and the answers we arrive at will be based on what you believe. But you may think it can’t all be done … and that is where I come in. I will provide you with the information you need to have to make a decision.

Call me today at 209-390-1163 and let’s talk. If you prefer to do some checking online, feel free to visit my web life insurance application page where you can do this. But please understand that a web page is limited. I can provide you more complete information by you talking to me. But if you feel that term insurance fills the need for you at this time, the web page may be all you need.

By now you’ve read or heard that Bin Laden has been killed.

I first read in the news that he had been killed by a bomb a week ago, and the authorities had been waiting for D.N.A. testing to prove it was Bin Laden before they announced it to the world. It was also stated that they “had his body”. Next I heard from President Obama that he had been killed in a firefight. Later I read that he had resisted arrest and had been shot in the head – and buried at sea within 24 hours. Obviously, both accounts cannot be true.

Yet when I read the first report, there were enough “details” to make it appear to be true. The reporter seemed to know what he was saying. Yet either he was just making it up as he went along, or the later official report is untrue.

The purpose of my blog is not to debate which report is true. The purpose of my blog is to point out that you cannot always accept how events are reported by the news media. The news media seems increasingly interested in only two things – 1)getting the story out and 2)scooping their competition. The accuracy of the report seems (increasingly so) to be of little importance. When a person reads a report and they have only passing knowledge of the subject, it is not too difficult to make the reader believe what you want them to believe – if you are a good writer. The thing is, a reporter is suppose to report – not just write a good story.

Because I work in insurance and have for 30 years – I know when a reporter is just “writing” as opposed to “reporting” (when writing on the subject of Insurance). Its patently obvious that what he is writing is not accurate. Oh it may contain bits and pieces of truth, but the overall effect of what is written is just not right. Now to be clear on this, news reporters are not the only ones guilty of this. Politicians? Guilty! Insurance Companies? Guilty! I recently received a letter from a major insurance carrier that had so much spin in it that I got dizzy reading it! (Okay, that was a bit of hyperbole – but you get the point, right?)

Now I want to make clear that not all Insurance Companies engage in these tactics. Most are actually quite forthright in how they interact with brokers like me, and with their customers. Companies that I judge to be honest and forthright are the companies that I choose to promote to you – my customer. And with that in mind – let me just say, I am here to help you. It’s what I do, and it’s how I earn my living. If you have questions about your present coverage and was wondering “this or that” – call me (209-390-1163). I’ll tell you how it is and I’ll be forthright in what I recommend to you. I’m here to help.

I took this quiz from the Kansas Department of Insurance and thought I’d share my results.

Although I answered the quiz with the right answers, I do not exactly agree with the bias in the quiz. It’s true that the law does not create a national insurance plan, however, it is my belief that it is written in such a way to move things in this direction. Only if its modified in some way will that not be the end result. Of course, I do also expect it to be modified. More important than this however, I do not believe it does anything to address costs.

The high cost of health insurance is in direct correlation to the high cost of medicine. If you do nothing to lower the underlying costs, you can’t expect to change the effect of those decisions. Medicine should not have to be practiced defensively. I also find it sad that some in the health care field, view opportunity as a license to take advantage of people in need. Until this is stopped, the high costs will continue.

Health Reform Quiz

QUESTION	CORRECT RESPONSE	% OF AMERICANS ANSWERING CORRECTLY
1. Will the health reform law require nearly all Americans to have health insurance by 2014 or else pay a fine?	Yes, the law will do this. You answered this correctly.Yes. Starting in 2014, most U.S. citizens and legal residents will be required to obtain health coverage, or pay a penalty. Some exemptions will be granted, for example, for those with religious objections or where insurance would cost more than 8% of their income. Learn More »	64%
2. Will the health reform law allow a government panel to make decisions about end-of-life care for people on Medicare?	No, the law will not do this. You answered this correctly.No. No such panels exist. While early versions of the law did contain provisions that would allow Medicare to reimburse physicians for voluntary discussions with patients about end-of-life planning, these provisions were dropped from the final legislation.	45%
3. Will the health reform law cut benefits that were previously provided to all people on Medicare?	No, the law will not do this. You answered this correctly.No. The law reduces payments to the privately administered Medicare Advantage plans, but they will still be required to provide all benefits that are covered by traditional Medicare. Learn More »	40%
4. Will the health reform law expand the existing Medicaid program to cover low-income, uninsured adults regardless of whether they have children?	Yes, the law will do this. You answered this correctly.Yes. Medicaid will be expanded to cover nearly all individuals under age 65 with incomes up to 133% of the federal poverty level ($14,400 for an individual or $29,300 for a family of four in 2010). Learn More »	62%
5. Will the health reform law provide financial help to low and moderate income Americans who don’t get insurance through their jobs to help them purchase coverage?	Yes, the law will do this. You answered this correctly.Yes. Individuals without access to affordable coverage who purchase coverage through the new insurance Exchanges and have incomes up to 400% of the federal poverty level will be eligible for premium tax credits based on their income. Learn More »	72%
6. Will the health reform law prohibit insurance companies from denying coverage because of a person’s medical history or health condition?	Yes, the law will do this. You answered this correctly.Yes. Starting in 2014, all health insurers will be required to sell coverage to everyone who applies, regardless of their medical history or health status. Learn More »	67%
7. Will the health reform law require all businesses, even the smallest ones, to provide health insurance for their employees?	No, the law will not do this. You answered this correctly.No. The law does not require employers to provide health benefits. However, it does impose penalties, in some cases, on larger employers (those with 50 or more workers) that do not provide insurance to their workers or that provide coverage that is unaffordable. Learn More »	25%
8. Will the health reform law provide tax credits to small businesses that offer coverage to their employees?	Yes, the law will do this. You answered this correctly.Yes. Beginning in 2010, business with fewer than 25 full time equivalent employees and average annual wages of less than $50,000 that pay at least half of the cost of health insurance for their employees are eligible for a tax credit. Learn More »	65%
9. Will the health reform law create a new government run insurance plan to be offered along with private plans?	No, the law will not do this. You answered this correctly.No. The law does not create a new government-run health insurance plan. The existing Medicaid program will be expanded to cover more low-income people, government regulation of the health insurance industry will be increased, and tax credits will be provided to make private health insurance more affordable for people.	27%
10. Will the health reform law allow undocumented immigrants to receive financial help from the government to buy health insurance?	No, the law will not do this. You answered this correctly.No. Undocumented immigrants are not eligible to receive financial help from the government to buy health insurance, nor are they eligible for Medicaid or to purchase insurance with their own money in the new Exchanges.	42%

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Did you know that there are an estimated 16.6 million workers employed at small businesses that are eligible for a tax credit because they offer small group health insurance? I find that may small business owners are not aware of the tax benefits or the potential impact on the group’s bottom line.

According to the IRS, the tax credit can be quite large. If you are not now providing benefits to your employees, did you know that even a small business with 10 people with an average wage of $25,000 per employee, and a total employee medical cost of $70,000 per year could get a tax credit of 35 percent of their premium cost, or $24,500?

I’m here to help. Call me [209-390-1163 or 855-MPMYERS] or email me with any questions.

Michael Myers

This is what I’ve been feeling for some time now when it comes to health insurance. Seemed like the companies all just copied each other and the price difference was not anything to write home about.

Well I am very happy to announce that there is a new carrier in California (for the first time in a long time). It is good news because they specialize in PPO and HSA plans – which just happens to be where my heart is at when I enroll a  new client. I just feel that the employer and employees are best served by these plans.

If you haven’t looked at your health insurance plan lately (or even if you have) I may be able to save you significant amounts of money and put your employees in a better position than they currently are in.

Call me at 209.390.1163 or 855-MPMYERS or just email me (see button to right). Let me help. That’s what I’m here for.

Michael

I don’t think it rocket science to note that anyone you talk to has financial needs. We need A Plan. You can’t get where you want to go if you don’t know where that is OR you fail to look at a map and consider the options.

Men and women deal with these needs and/or perceived needs differently. Most women will usually say they’ve not taken care of their future needs well enough, whereas many men just don’t want to think (or talk) about it. Since I’m a man, I can say that although I am not fatalistic, my inclination is to not want to think about things I have no answers to. This inclination I have to fight, because it of course makes no sense. One cannot find a solution if one spends no time seeking the solution.

When it comes to doing planning, women are often more willing to do this, despite any insecurities they may feel. Men do tend to resist doing this.

Speaking of planning … Did you know that today – there are less people with life insurance than ever in my 30 years in this business. The odd thing is that life insurance costs much less today, than it once did. And its not just life insurance where planning makes sense, but also planning for the times we are ill and suffer in some accident. That is also part of planning.

Many think that this would be too expensive, so they never really get the information they need. But if you buy a cup of coffee or other drink of some type each work day, chances are you actually will think it’s quite cheap (since it likely will cost less than the drink) – and the good feeling that one has when taking care of this cannot be described in words. You have to experience it.

I can help you plan. I can give you the information you need to make good choices that will not only protect you and your family – but also give you a peaceful feeling that you will not experience from other things.

Call me today at 209-390-1163 OR toll-free 855-MPMYERS or click the email button to the right and send me a message.

I’m looking forward to talking to you.

Michael Myers

Corporate bailouts. Higher taxes, Stock market losses, Record inflation, Political revolutions, Real estate crisis, High unemployment, and Soaring commodity prices. These are just a few of the topics that have swarmed headlines already this year. In today’s financial marketplace, whenever the news changes, the economy is right behind. With the economy surging and falling so quickly, it’s hard to know what to think. It’s even harder to determine how these changes will affect you.

It is easy to just not really examine this but its very beneficial to do so.

For instance, you may wonder why I included inflation. Isn’t inflation low? Well yes and no. The numbers reported to us seem low. However, the scale has been changed, with gasoline prices and home prices being removed. Food and clothing is not included in the CPI. Put them into the formula and the CPI is not 3%, but rather it is at record levels. So if you don’t buy gasoline, diesel, food, clothing or own a home, inflation is low. Otherwise, its at record levels.

What does this have to do with your retirement? Perception may make things seem okay, but it takes examining it to really come to a reasoned conclusion.

This is what I encourage you to to. I help people with this. If you have a retirement plan, either one you personally manage or one that is managed for you – give me a call and let me give you my two cents. It won’t cost you anything but a little time, but the payback to you could be significant.

I can be reached at 209-390-1163 or toll-free at 855-MPMYERS. Or, if you’d prefer, send me an email by clicking on the email button to your right.

Michael Myers