How old is your health insurance?

BY IRENE CARD AND BETSY CHANDLER

NEWJERSEYNEWSROOM.COM

YOUR HEALTH INSURANCE

Have you had your medical insurance plan for more years than you can count? Unlike fine wine, health insurance policies do not necessarily improve with age.

Recently a gentleman who had the same medical insurance policy for "the past 20 some years," in his words, came in to the office.

The premium he is paying simply astounded me. While many people complain that their employer is changing their health insurance coverage each year, that is often a far better scenario than simply paying the bill and not paying attention to it.

The health insurance industry is extremely tumultuous. The savvy consumer, whether an employer insuring his staff, or an individual needing coverage for the family, takes the time to reevaluate health insurance plans each year. If you have had your same insurance plan for more than three years, and have not called your agent to inquire if what you have is still the best company, and product, to meet your needs, you may be throwing money away.

For those of you who do not have the option to enroll for health insurance through your place of employment, and must purchase your own policy, give serious thought to the various benefit levels available.

Ten years ago the most common plan offered 80/20 coverage. Today we see far more people enrolling with the 70/30 plans in an effort to offset premium. While you are losing 10 percent in benefits, you often save far more money in premium dollars than what the 10 percent coverage would equate to.

Get past the emotional thought that 80 percent coverage is better than 70 percent coverage, and look at the bottom line. Most plans today offer a "maximum out of pocket" feature at $5,000 or $10,000 in eligible expenses. This is the point at which the policy pays 100 percent for the remainder of the calendar year. The maximum out of pocket varies according to your health insurance plan.

Do the math. If you lose 10 percent of $10,000 – that equates to an additional $1,000 out of your pocket, worse case scenario. If your premium savings is greater than $1,000 a year you will be ahead of the game.

Furthermore, do not be naïve enough to think that you do not need health insurance, or would rather save the premiums and pay the medical bills out of your pocket. Of course no one that reads this column would be foolhardy enough to do that!

We received a phone call this past week from a young man who had let his policy lapse, as he had not submitted any claims the prior year. He figured he didn't need the coverage, as he had not collected on it all year. Now he needs surgery and thought he should purchase a plan.

Sure thing – but the surgery will not be covered. You cannot wait until you are scheduled for surgery and then expect to enroll with a plan that will cover it. Not collecting on your health insurance is a good thing. How many times do you collect on your homeowner's policy? Or auto insurance policy for that matter? Do you cancel these plans because the house didn't burn down – or you didn't have an auto accident?

Of course not.

It is the same with health insurance – if you have not collected on your plan, that means you have been very fortunate, medically speaking, and should count your blessings. For each of you who think you have lost out because you did not collect on your health insurance, I will show you dozens of people who have collected plenty on theirs, and would gladly trade places with you.

If you need guidance about your health insurance benefits, call your insurance agent now, while it is fresh on your mind. If you don't have an agent, you are welcome to call us. We will be glad to answer your questions and guide you.

Irene Card & Betsy Chandler are licensed insurance professionals working at MIC Insurance Services, a health insurance services company. If you have questions relative to this column or other related topics, we invite you to call (973) 492-2828, or visit our web site at www.micinsurance.com.