Saving “Health Money”
We hope the following information is helpful for you.
Direct Health Care is affordable at our office,
and the offices of many other doctors in Beverly Hills.
Disease Care Payment Plans (the crisis care model)
erroneously named “health insurance” are expensive.
Health Care is NOT the same as “health insurance.”
Consider the following scenario:
You have contracted to participate in a “health” insurance plan, and pay for it every month. The agent who sold you this plan assured you that you would be “covered” if you ever needed it, even though almost everyone who buys such a plan does not fully understand the fine details of the plan’s lack of benefits.
Naturally, you feel relieved when you purchase the plan because you feel “covered.” Each month you pay a significantly large amount of money to this health insurance plan so that your “coverage” can be current, if you would ever need to use the plan. The new calendar year starts and you continue to pay for this plan every month, as you have been for some time now, so that you can continue to feel “covered.”
After paying every month for all this time, you find that you have a need for care and start care with a doctor of chiropractic who is helping you to be well. You send the forms to the insurance company and in when your benefits are returned to you, you see a notice (on their explanation of the payment) that says the doctor is not “participating” on their “list,” and that you’re paying EXCESS because of that. Most people don’t like to see such a notice. I don’t blame them! However, let’s see the calculation of the monetary difference between seeing a doctor who is on their “preferred list,” and seeing the one who is currently helping you, but not on their list.
1. Let’s say the doctor you used charges $55 for a typical office visit, but the insurance pays only $25 per visit, regardless of the charge, or service by the doctor. It looks like you are paying a difference of $30 per visit. But the insurance company didn’t tell you that if you went to a doctor on their list, (meaning a “participating” doctor), your required co-insurance payment (to that “participating provider”) is between $15 and $25 for each doctor visit.
2. So the cost difference when using a doctor who personally gives you a sufficient amount of his valuable time (per visit), compared to seeing a doctor on their list, who would only be able to personally spend about 6 minutes with you (this doesn’t include their staff time), is only between $5 to $20 more per typical visit.
3. But there’s more to know: The insurance plan will pay a total of $26 to a “participating” doctor. That’s just $1 more than the $25 they reimburse to you for a doctor who is “non-participating.” They didn’t tell you how little the “excess” was; they just said the amount you are paying is in “excess” of what is allowed for a non-participating provider. They allow $26 to a “participating provider,” but $25 for a “non-participating” doctor. THAT’S ONE DOLLAR!
4. You now realize that the insurance company is just making you believe that you are paying much more when you go to a “non-participating” doctor, but it really isn’t that much more. The difference can be as little as $5 and as much as $20. That’s all!
What should you do? That’s exactly what you asked when you called your chiropractor’s office to complain about your coverage. Here is your real solution from the chiropractor who cares for you:
“Insurance was never created to deal with the routine.”
-Allan B. Hubbard, Assistant to the President for Economic Policy
Your Alternative
Many people are discovering the benefits of the new “Health Savings Accounts” (HSA) that were first made available in January of 2004. In January of 2007 the laws improved regarding these plans which makes it irresistible to own this type of plan, compared to your old insurance plan.
Here’s how it works. First you enroll in a relatively inexpensive higher deductible health insurance plan (HDHP). Then you open up a tax-deductible savings account, which is used to cover current and future health expenses. The money deposited, as well as the interest you get from that account, are not taxable, and may even be invested in stocks, bonds, mutual funds, etc. Funds from this account can be withdrawn tax-free, to pay for any qualified health expenses. At the end of the year, any unused balance from this account stays in your account and can be used anytime in the future for any health expenses!
So the biggest differences with this type of plan is that
1. Unlike a regular old insurance plan, at the end of the year, the money you put in doesn’t
dissappear!
2. The amount you pay every month is substantially less than what you are paying now!
3. You get to choose whomever you want to go to for your health needs!
4. All your health expenses will be tax-free!
5. Your doctor gets reasonably paid and spends the time you need, with you!
6. You have a lot of extra money that builds-up in your HSA and it is tax-free!
7. In an emergency situation, you still have an insurance plan to “cover” you.
Now I ask you this question: Is it really worth it to keep the plan you have now? In other words: Is it really worth it to keep paying about $800 per month for your current plan, so that when you go to a “participating” provider you can save $15 per visit? The answer is NO. Your best solution is to change your terribly expensive plan into one of these inexpensive HSA plans.
Your insurance agent might be very scared of this kind of change because you will be paying much less to the insurance company and control more of your own money. If you expect this response before going into a meeting with your agent, you can be prepared for all the fear and guilt the agent might throw at you.
Of course, if you need a referral to an agent who can set up an HSA plan like this for you, we can give you a referral.
The TOP 2 Reasons why people buy common sickness insurance plans, and pay far too much every month of the year are:
1. Fear of hospitalization or prolonged need for care due to car accident
2. Fear of hospitalization for chronic debilitating diseases such as cancer.
Better Alternative for #1 above = very inexpensive coverage with automobile “med pay.”
Did you know that there is a separate kind of coverage for any injury related to a car. This coverage can be part of your automobile insurance plan and is called “medical payments.” It is a no-fault plan and for an insurance company it is against the law for them to increase your car insurance if you make a claim on that part of your policy. This sounds great, except you might be thinking, a plan like that is just going to cost as much or more than my present accident insurance policy that I have with big Blue. Well, have we got news for you!
1. Med pay is not billed per month. Your coverage is for the duration of the contract with your car insurance, so it will be either 6 months or 1 year, depending on your particular plan.
2. Med pay coverage is extremely cheap compared to any other type of insurance plan!
3. A med pay policy added on to your car insurance may cost less than $100 for the whole year!
4. Med pay covers ANYTHING that is related to a car injury, and you don’t have to be the driver. Here’s an example. A beach ball falls from someone’s apartment window, bounces off of a parked car and hits someone, knocking that person down to the ground. That injury is covered under their “med pay!”
Better Alternative for #2= healthy lifestyle and HSA type of “coverage.” – as discussed above
In conclusion, you have real choices when it comes to how you pay for your health needs. The above solutions will give back control to you, and save you a lot of money that you can put into your bank account and into building your health.
I hope this information has helped you. Please feel free to share it with your family and friends.
In support of your health,
©2007-2009 Barry J. Lieberman, D.C.
Beverly Hills, CA 90212 also serving West Los Angeles, West Hollywood, Century City, Culver City
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Do You Really Need That Expensive Insurance Plan?
