NOW I CAN PROVE IT!!!!

When all of the health care legislation was going on. The one thing I said was, "How does this make sense, I currently pay over $4000 per year for health insurance, but If I opt not to buy under the new reform package, I will get a fine of around $900." Now especially if I can get guarantee issue health insurance. Why should I buy it when I am healthy, if I can get it when I am sick, and pay the same amount. Well I got some information about how things have been working in Massachusetts, who have a similar program. Please see the link below, and I thank the National Center for policy analysis for thier column. It was written by Merrill Mathews.

GAMING THE HEALTH INSURANCE MANDATE
The key to ObamaCare is the individual mandate, which requires individuals to have health insurance or pay a fine. The mandate is supposed to push nearly everyone into the pool to minimize free-riding on the system. But what if millions of Americans decide it's a better deal to pay the fine and remain uninsured until they need coverage? It appears that's exactly what's happening in Massachusetts, which passed its own ObamaCare-like reform with an individual mandate in 2006, says Merrill Matthews, executive director of the Council for Affordable Health Insurance and a resident scholar with the Institute for Policy Innovation.

Last year, Charles Baker, former CEO of Harvard Pilgrim Health Care, one of Massachusetts's largest health plans, noticed some health insurance brokers posting comments on his widely read blog. They were suspicious that people were applying for health coverage after a medical condition developed, got the care they needed, and then dropped the coverage.

Coverage for an individual, noted Baker, now a Republican candidate for governor, might be $2,000 to $3,000 a year, while the penalty was only about $900. So he asked his finance people to see if they noticed any discernible patterns. What did the find?

From April 2008 to March 2009, 40 percent of the individuals who applied to Harvard Pilgrim stayed covered for less than five months; yet claims were averaging about $2,400 a month, about six times what one would expect.
Blue Cross and Blue Shield of Massachusetts has now confirmed it is experiencing similar problems; the company says that in 2009, 936 people signed up for three months or less and ran up claims of more than $1,000.
The disparity between the cost of expensive coverage and the fine for not getting it encourages individuals buying their own coverage -- i.e., those not in an employer plan -- to game the system by paying the fine and remaining uninsured until they need coverage, says Matthews.

Insurers have long recognized this problem, known as "adverse selection," which is why every type of insurance normally restricts people from obtaining coverage after an incident has occurred. Someone can't, for example, buy a homeowners policy for a house that is already on fire. But Democrats have decided to do away with that basic actuarial principle with regard to health insurance, says Matthews.

Source: Merrill Matthews, "Gaming The Health Insurance Mandate," Investor's Business Daily, April 19, 2010.




It basically states what I said all along, all though worse. Because now people not only buy it when they need something, they cancel it after they have the surgery.

The system makes no sense. I wish our elected officials would not only read the bills that come through, really study them and think about what MIGHT HAPPEN, if you do not think it through.

If you want to fix the bill we do not need 2700 pages. We need about one sentence. When the HIPPA law was passed 14 years ago. It stated that if you went from one group plan to another group plan, the pre-existing condition clause was waived, because you had creditable coverage. They did not put that in if you went from a group plan to an individual plan or individual plan to individual plan, That is the only fix that was needed. Extend it to INDIVIDUAL HEALTH PLANS. One sentence that everyone understands.

THANKS FOR READING!!

Eric Wilson is an insurance broker in Chicago. He services Illinois, Wisconsin, Ohio and Indiana. He can be reached toll free at 888-448-5370 or online at www.isellhealth.net

The effects of Health Care Reform have begun!!

During the reform "campaigning" I kept hearing how, health care reform will make buying health insurance more affordable because they were trying to create more competition. Now, I do not know how many insurance carriers there are. I do know that I represent about 16. Some like Medical Mutual, write only in Ohio, and Consumers Life, is their sister company in Indiana and Pennsylvania. Either way, there were enough companies to have competition.

We are starting to see the NEGATIVE affect. In the last two weeks, Insurance Resouce Group, National States, and the big one of American Community, have stopped taking applictions. They will not be able to survive in a "guarantee issue environment". The law is not even in effect yet, and we are starting to see what will happen.

My belief is when it is said and done, most insurance companies cannot survive under the requirements of the health care reform bill. In four years, when the bulk of this goes in place, you will see a lot of carriers go out of business. I think in ten years, there will only be government run health care.

If you have followed my blogs, you know I am totally opposed to the government running anything, it destroys the capitalist society.

Stay tuned to see how it ends up.

I hope, we get this right!!

Eric Wilson is a health insurance broker in Chicago. He writes in in Illinois, Wisconsin, Indiana, and Ohio.

He can be reached toll free at 888-448-5370 or online at www.isellhealth.net.

Thanks for reading.

Aren't you proud of yourself??

I am going to take you back about 30 years. My brother was in 8th grade so he would have been 14, he is 40 now. He was playing a playoff football game, in the rain and it was cold and nasty. They were loosing the game 30-6 with about two minutes to play. All the player and fans by that point wanted to go home. The referree, then called a penatly, I do not remember what it was for, it was not unsportsmanlike conduct or any 15 yard penalty. One while, maybe the right call, not necessary toward the outcome of the game. I hear my Dad yell to the referree, "AREN"T YOU PROUD OF YOURSELF"?? It was an unpopular call.

That is how I see the health care reform bill. While the system needed to be fixed. It could have been done with some common sense and a bi-partisan fashion. The democrats, who most of them do not like the bill either, thought it was better to pass a bad bill, then pass no bill.

Fifty Five percent of Americans were against the bill while only 38% supported it. The remaining were undecided.

What I do know, is that I have to start paying more in taxes NOW, for an entitlement I can get four years from now. Seems like I have to pre-pay for health care for everyone else.

Here is how bad this bill is for our country.
1) It EXPANDS entitlement spending by over $1 trillion in order to "cover" 30 million more people.

2) It ADDS $500 billion in NEW tax INCREASES
3) It Robs Medicare and Social Security ( already BROKE, if you read my recent blogs). It is cut to FUND this new entitlement.
4) In order to keep the CBO score under $1 Trillion they count this TRANSFER from Medicare to the new entitlement a SAVINGS
5) $468 Billion in additional spending on subsidies to purchase GOVERNMENT APPROVED health insurance.
6)$48 BILLION, I am saying the word BILLION a lot in this, in additional Medicaid spending.
7) A HUGE new capital gains tax of almost 4%, that basically affects anyone with savings.
8) The bill has a DECADE of Medicare cuts and a DECADE of tax increases, but only SIX years of BENEFITS.
9) $70 BILLION long term care premiums will be collected under the "CLASS ACT" again to fund the $1 Trillion entitlement.
10)$132 BILLION in cuts to medicare advantage plans.

You know what is NOT IN THE BILL??? What it will take the Federal Government to ENFORCE the mandates. They are hiring 16,500 new IRS agents, which will cost at least $10 Billion and another $60 billion to enforce all of the mandates.

So I say to our congress.. AREN'T YOU PROUD OF YOURSELF??


Eric Wilson is a health insurance broker in Chicago. He can be reached at 888-448-5370. You can visit him online at www.isellhealth.net.

Thank you for reading.

Health Care Reform- what happens now??

I received probably a dozen phone calls today from my clients, some past clients and other insurance professionals wondering what the bill means.

Here is how I can answer it. Within six months the following will happen..

Children will not be subject to pre-existing conditions

A Government Risk pool will be established- You will have to be uninsured for at least six months to qualify for this.

The will be an EXTERNAL review on all rescission cases. A rescission occurrs when an applicant does not include important information on their application.

Prevenative services will be covered with no co-pay and no deductible.

Tax Credits based upon your income will become available

Children will be able to stay on their parents policy until they are 26 years of age.

In the year 2014 is when the big changes occur. In 2014, all policies will become guarantee issue. And you will be able to shop either through an insurance agent like you do now, or shop through what is being called an insurance exchange.

The insurance agent will be able to help you apply for the available tax credits.

WHAT YOU SHOULD EXPECT...


Expect your insurance premiums to go up substantially. I currently pay about $300 per month for myself and my children, I am expecting that number to triple. This is for a few reasons. Now my plan is more catestrophic in nature and I pay for my preventative coverage myself. That will be in the plan now. There also will be cost increases, since insurance carriers will be covering expensive conditions.


Should you have any questions on the reform bill, please call Eric Wilson, a Chicago based insurance agent. He can be reached toll free at 888-448-5370. You can visit online at www.isellhealth.net or email him at isellhealth@gmail.com.

Thanks for reading.

Call your congressmen NOW!!

I have spent the day calling not only my calling my congressmen, and for that matter every other congressmen. You can block this bill by calling. Catepillar Equipment announced the bill will cost them $100 million in the first year. How is that cost effective. Please visit the website www.barakhatesthis.com. This is the list of the 33 congressmen that are on the fence.

Please do your part to take back America!!

Eric Wilson is an insurance agent in Chicago. He can be reached toll free at 888-448-5370 or online at www.isellhealth.net

Do we want to trust the U.S. Government with OUR HEALTHCARE SYSTEM??

Here is something to think about...

The U.S. Postal Service was established in 1775. The Government has had 235 years to get it right and it is BROKE!!

Social Security was established in 1935. They have had 75 years to get that one right and it is BROKE!!!

Fannie Mae was established in 1938. That is 72 years to get it right and it is BROKE!!

The War on Poverty started in 1964. $1 Trillion of our money is confiscated each year and transferred to "the poor" and they only want more.

Medicare and Medicaid were established in 1965. The Government has had 45 years to get that system correct and they are BROKE!!!

Freddie Mac was established in 1970. That is forty years- guess what?? BROKE!!!!!

The Department of Energy was created in 1977 to lessen our burden on foreign oil the department now has 16,000 employees and a $24 million budget per year. We now import more oil than ever before!! This one is 33 years and I would say it is well if not a failure at minimum a disapointment.

The GOVERNENT HAS FAILED in pretty much every "Government Service" that has been shoved down our throats, while at the same time OVERSPENDING our tax dollars.

My question to all of my readers is quite simple.

Should we really trust our government with a "Government Run Health Care System".

Please call your Congressmen!!


Eric Wilson is President of I Sell Health, Inc. in Chicago. He can be reached toll free at 888-448-5370. You can also visit online at www.isellhealth.net.


Thanks for reading.

HEALTH SAVINGS ACCOUNTS (HSA'S)- The future of health insurance

I get a lot of questions about HEALTH SAVINGS ACCOUNTS ( HSA's), these days. I am normally asked what are they and why are they good. What makes them unique.

So he we go, All about HSA's in a 10 minutes or less.

I refer to Health Savings Accounts as more like the Jiffy Lube of health insurance. I say that because with car insurance, if you need tires, your insurance does not pay for it, if you need an oil change your car insurance does not pay for that either. An HSA,kind of works the same way.

HSA's were created in Medicare legislation and signed into law by President George W. Bush on December 8th 2003. They were originally called Medical Savings Accounts (MSA) designed by Senator Bill Archer of Texas.

Mr. Archer realized that the two major benefits of health insurance that added the most cost were having prescription medication and doctor vist co-pays as part of the insurance policy. He believed if you eliminated that part of the plan,but still had the catestropic coverage, you would reduce premiums. He was correct.

IS IT WORTH GIVING UP DOCTOR VISITS???

The same question was proposed to Mr. Archer in the late 1990's. He said we have to make it worth it.

They came up with what in simplifed terms is a MEDICAL IRA. ( which is what the hsa is). It functions like an IRA, grows tax deffered and you fund it the same way. It is a 100% tax deductible account.

You can take the money you put into the account out for doctor visits or any medical expense. You put it in tax deferred, it comes out tax deferred ( for medical expenses).

For the year 2010 single policy holders can fund their HSA up to $3050 per year. A family plan can fund it up to $6150. Like an IRA if you are over age 55 you may add an additional $1000 per year.

The great thing about HSA's is you are not paying for benefits that you are not usings. If you do not see a doctor more than once a year, these plans are ideal for you. Of course, you save on premium.

ADDITIONAL FACTS:(sourse- Government Accountabilty Office)

In 2009 HSA's covered 10.5 Million lives in America

33% of all HSA participants have incomes of less than $35,000 per year.
36% of of all HSA participants did not previously have health insurance.
Consumers save and average of $1900 in the first year of owning the policy.

ADDITIONAL RESOURCES:

www.treas.gov
www.irs.gov/publications/p52/index.html


Eric Wilson, is the owner of the insurance agency I Sell Health, Inc. in the Chicago area. He services, Ohio, Wisconsin, Indiana, and Illionis. You can reach him toll free at 888-448-5370 or online at www.isellhealth.net.