Kentucky Health Insurance

Kentucky Health Insurance

New surveys of recent graduates show that most are apprehensive about their job prospects. A majority feel that they may not find a job, and many are worried that they may not get employment in their chosen field. In fact, many are looking at a prolonged wait for financial independence. Uncertainty about the fate of health reform is another major concern among these young people. However, even with all these doubts in the air, going without coverage is not advisable. Affordable individual health insurance in Kentucky is available. If you are a recent Kentucky college graduate, going by the following tips can help you stay covered.

•    Health reform law now allows children to stay on a parent’s health insurance plan until age 26. If you are healthy, it may not cost much to keep you on your parent’s plan. You can even contribute a share of the premium if you manage to find a job – while you wait for employer coverage to begin.
•    Short-term health insurance is a good option. Low-cost, high-deductible, short-term plans offer coverage from 30 days to a year. Though they do not cover pre-existing conditions or preventive care, you would get coverage for a sudden or unexpected hospitalization.
•    If you are uninsured for six months or longer, you may be eligible for coverage in the state’s high-risk pool. The pool is meant to bridge the gap till a health insurance exchange is established in 2014.

In a recent survey, most recent graduates reported that their first employer did not provide them with a health insurance plan. If this is the case, you should definitely check out the affordable individual health insurance plans that leading health insurance Kentucky companies offer.

Be Aware

It helps a lot to be educated about Kentucky health insurance and any recent happenings and how they will affect you.

•    Remember that, by 2014, you may be required to purchase health insurance on your own through a health exchange.
•    Budget for health insurance – you should not go without it. You should be aware about the various items that count towards the cost of your policy.
•    Look into whether it is cheaper for you to purchase a Kentucky individual health insurance policy of your own, or to stay on your parent’s plan.
•    Educate yourself to understand health insurance terms.

In order to make the best decision for you, get professional guidance on all of the above from an experienced, licensed Kentucky health insurance broker who can find affordable coverage for you.

Kentucky Health Insurance

Kentucky will set up a health benefit exchange if the Supreme Court approves the health care law. The idea of the exchange is to allow individuals and small businesses to compare coverage, provider networks and costs and purchase affordable Kentucky health insurance online. The law requires all states to have their health exchanges up and running by January 2014, failing which the federal government will step in to set them up.

Gov. Steve Beshear said that though no one is sure about what the Supreme Court will decide, Kentucky is ready to follow the law, if upheld.

The exchange will serve many purposes:
•    allow the purchase and sale of Kentucky individual health insurance plans
•    assist small businesses in purchasing health coverage for their employees
•    help small businesses qualify for tax benefits
•    allow individuals to enroll in health plans, Medicaid and KCHIP, and get tax credits and subsidies for premiums
•    allow individuals without employer sponsored coverage to directly purchase plans of their choice

According to State officials, the governor’s decision has the support of several groups representing health care agencies, advocates and employers, including the Kentucky Hospital Association, the Kentucky Chamber of Commerce, and leading Kentucky health insurance companies such as Anthem Blue Cross Blue Shield.

Neither the governor not these groups support the idea of a federal-run exchange. Bryan Sunderland, vice president of public affairs for the Chamber believes that there should be some sort of local control, but that the state should have the freedom to chart its own course in health care reform.

Chamber officials also said the health insurance Kentucky exchange, if set up, should “operate as an open marketplace that supplements, rather than supplants, the existing insurance market.”
It must be noted that the Chamber has serious concerns about the health care law’s impact on business. These concerns are brought about the provisions of the law. For instance, if employers with more than 50 workers do not provide their workers with coverage, and if the workers who qualify for health insurance subsidies buy their plan through a health exchange, the employer would be subject to a “free rider” penalty of $2,000 to $3,000 per employee.
However, the law also holds benefits for small businesses:

•    Employers with less than 50 full-time workers can purchase employee coverage at a more affordable cost in the health exchange

•    Businesses with fewer than 25 workers who earn an annual average wage of less than $50,000, are eligible for a tax credit if they help their employees purchase coverage

The U.S. Supreme Court is expected to deliver its ruling on the constitutionality of the federal act in late June.

While Kentucky residents and businesses can shop for coverage directly at the health benefit exchange, they cannot do with professional guidance. Obamacare envisions an important role for health insurance brokers. Only educated, experienced and licensed Kentucky health insurance brokers can provide employers and individuals with the information and unbiased guidance they need to make informed decisions.

Kentucky Health Insurance

When you are shopping for Kentucky individual health insurance, you could come across many terms and expressions. Understanding the lingo is the first step towards finding a plan that meets your needs.

Important Health Insurance Terms

•    Premium: This is the amount you have to pay the insurance company every month when you purchase a Kentucky individual health insurance policy. If you choose a plan with a lower premium and higher deductible, this would mean you save money now. A higher premium/lower deductible plan helps you face unexpected medical expenses later and face rising healthcare costs. Remember that non-payment of your premium can result in the cancellation of your policy.

•    Copayment: Your copayment or copay is the amount that you have to pay up front for a specific type of service, in addition to what your insurance covers. For instance, your Kentucky health insurance plan may require a $10 copay for each office visit. The insurance company pays the rest of the charges. If you expect to make frequent doctor office visits, it’s advisable to choose a plan with an affordable copay.

•    Deductible: The deductible is the amount you may be required pay out-of-pocket before your insurance company covers the costs. Most often, your monthly premiums and copays will not count toward your deductible. A good rule is to keep your deductible at a level that is not higher than about 5% of your gross annual income.

•    Coinsurance: This is the money that you have to pay for services, after your deductible has been met. Co-insurance is usually specified by a percentage. For example, if your insurance company covers 80% of your x-ray charges, you would have to pay the remaining 20% even after your annual deductible has been met. This 20% is your coinsurance.

•    Out-of-pocket maximum: When you are buying your Kentucky health insurance policy, pay special attention to its out-of-pocket maximum. This is the maximum amount (through deductibles, copays or coinsurance) that you must pay out of pocket. Once you have paid this amount, the insurer will pay in full for your health care expenses for that year. Your monthly premium will not count towards meeting the maximum out of pocket costs.

•    Claim: The claim is the request or application that you or your health care service provider makes to your Kentucky health insurance company for the company to pay for the benefits of the plan. The insurer may or may not approve the claim, based on their evaluation of the situation.

•    Maximum dollar limit: This is the maximum amount of money that your insurance company will pay for your claim within a specific time period. This amount could vary based types of illnesses or types of services, and whether they are specified for a year or for a lifetime.

•    Effective date: This is the date on which your insurance coverage begins.

Get Professional Guidance

This is just some of the basic health insurance lingo. There is so much more you need to know – more term, types of Kentucky individual health insurance plans available, how to go about getting quotes and comparing them, and selecting an affordable plan to meet your requirements. Contact an experienced, licensed Kentucky health insurance broker for professional guidance.

Kentucky Health Savings Account

According to a recent estimate, a Kentucky couple retiring in 30 years may need almost $500,000 for to pay for medical costs in retirement. There are many medical costs to plan for in retirement, including long-term care and Medicare premiums. The best way to prepare for retirement is with a Health Savings Account (HSA) compatible with a health insurance Kentucky plan.  HAS funds can pay for retirement health expenses tax-free.

What is a HSA compatible Kentucky health insurance plan?

A KY health insurance plan which meets the following conditions is considered HSA-compatible:
•    The plan’s annual deductible must be at least $1,200 for individuals and at least $2,400 for families.
•    The sum of the annual deductible (amount you pay out-of-pocket before your plan pays for your health care) and the other yearly out-of-pocket expenses under the plan (other than premiums) must not be greater than $5,950 for individuals and $11,900 for families.

How HSA’s Complement Your Retirement Plans:

With HSA’s, all of the following are tax free:

-    the contributions made to your HSA
-    interest and investment earnings in your HSA
-    payments made from your HSA for qualified medical expenses (includes doctors, hospitals and prescription drugs, dental and vision, chiropractic and acupuncture, lab costs, and more)

So your retirement savings are safer when you pay for your qualified medical expenses from your HSA. Also, the contribution to your health savings account through a pre-tax payroll deduction is not subject to Federal Insurance Contributions Act (FICA) or the Federal Unemployment Tax Act (FUTA) taxes.

A Kentucky resident who reaches age 65 will find a HSA a great option when it comes to paying qualified medical expenses, premiums for long-term care, Medicare premiums, as well as out-of-pocket expenses, co-insurance and prescription drug premiums.

If HSA funds are used to pay for non-qualified medical expenses or everyday spending, retirees at age 65 would have to pay tax only at their income tax rate which is now at a lower rate than when they were working.

Another advantage is that you don’t lose your HSA even if you leave the KY health insurance plan it is paired with.

HSA plans from Leading Kentucky Health Insurance Companies:

Leading Kentucky health insurance companies such as Anthem Blue Cross Blue Shield, Assurant and Humana offer simple and flexible HSA plans for Kentucky residents.

-    The Lumenos HSA plus plan from Anthem Blue Cross Blue Shield offers traditional health coverage benefits that can be paired with a HSA for more flexibility and tax advantages.

-    Assurant offers several HSA compatible options with CoreMed, its most popular major medical plan. For the available OneDeductible plan, all options are HSA-compatible.

-    HumanaOne’s HSA-qualified High Deductible Health Plan (HDHP) is covered in full for in-network preventive care services. You can choose your deductible. The HSA-qualified plans include an initial 12-month rate guarantee as long as you stay in the same area and keep the same benefits.

For more information on these HSA compatible health insurance Kentucky plans, contact an experienced and reliable licensed health insurance broker.

Individual Health Insurance Kentucky

Health Savings Accounts (HSAs) are becoming more and more popular in Kentucky and in other states. With health care costs rising, a HSA paired with a High Deductible individual health insurance Kentucky plan is a great way to save money. Read on to learn how.

A HSA is a special savings account in which you can save money to pay for your current and future medical expenses. The contributions that you make to your HSA are tax-free. You can open a HSA if you have a HSA-compatible high deductible health plan (HDHP).

How combining a HSA with a Kentucky HDHP saves money:

•    A HDHP-HSA plan has a lower premium than a traditional health insurance plan. The money that you save on your premium can be put into your tax-advantaged savings account and used to pay for your qualified medical expenses, current and future. With a traditional plan, more money goes into paying premiums regardless of the health care services you use.

•    Unused funds in the HSA stay invested and continue to earn tax-free interest year after year.

•    Contributions made to your HSA from your salary are not taxable.

•    If contributions are made to your HSA with after-tax dollars, the amount can be deducted from your gross income, so that you pay that much less income tax at the end of the year.

•    The money that you withdraw from your HSA to pay for your medical expenses is not taxable.

In summary: A Kentucky HSA HDHP plan can save money with low monthly premiums and allow you to benefit from tax savings.

Qualified Medical Expenses that HSA Funds Can Pay For

The qualified health care costs that HSA funds can pay include (but are not limited to):

•    Prescribed medications
•    Over-the-counter medications with a prescription
•    Insulin/diabetic supplies
•    Bandages
•    Contact lens supplies
•    Dental visits/orthodontics
•    Eyeglasses
•    Long-term care insurance premiums
•    COBRA coverage cost
•    Medical insurance premiums while receiving federal or state unemployment compensation
•    Post age-65 premiums for coverage other than Medigap or Medicare supplemental plans

Are you Eligible for a Health Savings Account?

As mentioned earlier, one of the conditions for opening a HSA is that you must have a High Deductible Health Plan. Other requirements include:

•    You do not have other disqualifying coverage such as a non-HDHP plan
•    You are not enrolled in Medicare
•    You are not claimed as a dependent on another person’s tax return

For More Information

One of the biggest advantages of the HSA is that if it is available through your employer, you would still have it even if you left your job. You can continue to make tax-free-contributions to your HDHP-HSA individual health insurance Kentucky plan and save money.

Leading health insurance Kentucky companies offer a variety of HDHP-HSA plans. Contact an experienced Kentucky health insurance broker for more information and guidance to choose the right option.