Insurance COMPANIES not insurance AGENCIES determine the price(s)of their various products. Which means,the price per month for the product you purchase is the same no matter WHERE you find or WHOM you purchase it from. (I.E.) Internet,yellow pages,direct mail advertisement, an acquaintance, etc.
Since your price is IDENTICAL, what should you look for from an agent? Two things to consider before you make a decision.
1. Is the agent involved making an effort to show you why one companies particular product would be your best value possible? 2. Is the agency assuring product integrity and service AFTER THE SALE by offering professional references?
If another agent / agency offers you a different quote for an insurance product from one of our companies, then they are quoting you a DIFFERENT PRODUCT by that same company. Buying insurance on price alone is foolish and dangerous.
Health insurance should be purchased on the merit of value.
That is, not a Price comparison between different companies, rather a Coverage / Price comparison between different companies.
This is the purpose of our spreadsheet.
There are 5 points of consideration:
Most people are aware of their deductible. It is in the area of co - insurance, and especially exclusions and limitations, that clarification is often in order.
What we see in this spread sheet is a coverage / price comparison of four leading companies with the same deductible(s):
Blue cross is the only company to not provide On Job Coverage (in FL).
Sometimes people gravitate towards a particular good or service because of name recognition (marketing).
The "$mart" consumer knows what it is they are buying.
Simply put, don't buy a television commercial; buy the product that offers the most value for your health insurance dollar possible, and get the service you deserve, behind it.
The total cost of a doctor visit is $60 - $140 (depending on the doc.).
If you have a $25 co - pay, that means you pay $25 and the insurance company pays the rest.
When you use a doc. visit co- pay, none of the cost of that visit is applied to your calendar year deductible.
Let’s explore the options, of course, but many times, people find paying extra for “co – pays” is not worth it.
With some companies, we can have the first $500 paid for by the insurance company in case of an accident.
It will cost an additional $8 per month per person insured to do so.
If a medical issue is more serious and the patient is taken from the E/R to the outpatient treatment area, then this situation is waived and we are looking at deductible / co - insurance.
This row on down covers the areas that make up the reasons why we need health insurance. That is, medical treatment(s) that could be very expensive.
Generic medications shouldn't be a real concern because they are inexpensive. However, many times drugs are not available in generic form.
Brand name medication can be very expensive, this is why, in order to save themselves money (and make their products more cost competitive with other companies), some companies will only pay for a portion of these brand name drugs after the deductible is met.(Benefit max.Blue Cross 60% ) ... or perhaps only cover $500 max. per year.
Remember you CANNOT add coverage, after the fact, in regards to a pre-existing condition/expense(s).
We have witnessed clients using thousands of dollars in brand name medication after they leave the hospital or doc.'s office to recuperate at home, sometimes for months, if not indefinitely.
For this reason we feel it is important to have the medications paid for, by the insurance carrier, after the client satisfies their deductible/co-insurance.
Co-Insurance is what you owe after your calender year deductible.
If you owe $0.00 after your deductible is met then you have a 100% co-insurance plan. If you pay $3000 in co-insurance, then you have an 80/20 split on the next $15,000 of medical expense after your deductible.
Example:
$25,000 (Gall Bladder Surgery)
- 1,000 (Deductible)
$24,000 (After Deductible)
x 20% (Of next $15,000 of medical expenses after deductible is met)
= $3,000 (Co-insurance)
Total Owed by the Insured: $1,000 (deductible) + $3,000 (co-insurance) = $4,000
Using the example above, Possible Out Of Pocket Per Year would be $4000.
Please understand, the web is used simply as another form of marketing for insurance companies or agencies.
Again, we, as licensed agents, have no bearing on the price companies ask for their various products.
No one can blame you for trying to "cut out the middleman" in order to save some of your hard earned money, but there is no markup involved by going through an agency vs. applying with a company directly.
What you do receive by going through a value based agency, is having someone with a vested interest in your satisfaction.
An agent is paid each month as you pay your premium. A good agent will be there to answer your questions, to review any and all paperwork with you in the event of a claim.
In the event that billing information has not been submitted properly (we are dealing with human beings here, this can happen) you will want to be in control of the situation and know that you are not experiencing any unnecessary out of pocket costs.
Why be just another name in an insurance companies database, with no representation, especially when you will be paying the exact same price for your insurance?
Also, it is good to have someone to work with you who knows the marketplace and who will continuously (year after year) be "on the lookout" for the best possible products and company for his / her respected client.
You have to be careful. Above and beyond your deductible..
These important points should be discussed with a knowledgeable independent agent, directly. The differences between companies and their products can be significant to enormous.
No one wants to spend more money per month than they have to, that's why it is crucial to recognize exactly what elements of possible medical expense we are trying to protect ourselves and or our family from, and to choose the product that covers those potential financial concerns in the most cost effective manner.
Give us a call/email and we will carefully review this information together, completely.
Well, the reasons are as follows:
Without exception, the companies which offer the lowest amount of value to the consumer offer 'advanced commission' ... to entice sales people.
Companies which offer products of value, pay 'as earned' commissions. SmartHealthIns.com would rather wait to see its money.
Thanks,
Joe Jessome
SmartHealthIns.com