The "New Normal" in Health Insurance

High prices, no providers and lousy service

I want to apologize first and foremost to all of our health insurance clients for the deterioration of the level of service which we have been providing. The implementation of Obama Care (ACA) has been a complete disaster and it has thrown all of the insurance companies into chaos. The government failed to advise the companies as to what to do because they themselves had not yet written the rules. Because of this, the companies unfortunately could not advise us as to what to tell you, our customers.

Obamacare is driving up rates for everyone unless you make less than $45,000 a year and are getting a government handout sponsored by the taxpayers or have insurance but are being surcharged for a serious pre-existing condition. We do not participate in the Covered California exchange, as that is the only way you can get the socialist taxpayer subsidy and there is already enough wealth distribution going on in California without our help. If you are willing to pay for you and your own family’s health care costs, we are ready and willing to help you navigate through the morass that is Obamacare. We have the expertise to make the process as painless as possible.

The companies are in a state of chaos. They have fired most of their intelligent, quality people to cut the costs and are then replacing them with low paid novices that can barely spell insurance. The old Palo Alto landmark “Rudy’s Pub’s” motto was, ‘Lousy service, warm beer and cheap food.’ It was a kind of a cute takeoff on English pub humor.  The “new normal” for health insurance of ‘lousy service, poor provider lists, long waits, higher premiums, fouled up billing, and no one that knows or wants to fix it’ is simply NOT CUTE.

          Now that open enrollment is almost over, the rules and rates are pretty clear, although the companies’ service is still lousy. If you attempt to call an insurance company, you will experience a hold of one to three hours followed by your call becoming disconnected, transferred, or you may even be given wrong or conflicting information. You can avoid all of this by just calling Ron at Insurance by Allied Brokers today to guide you through the chaos for no additional cost!

“Not touched by human hands” has become our new method. If we cannot do it online or via mail, then it cannot be done. We have been able to learn all the new rules and how to get things done for our clients without having to talk to the companies. Please take my advice, and do not try to do it on your own. Without us to navigate for you, it is hopeless. We will use our expertise and genuine care for your best outcome to help you through this difficult process and get the job done!

Services we provide under the “New Normal”:

• Signing Up

1. Signing up for a new or replacement policy
2. Explaining rates, coverage, and options
3. Choosing provider networks
4. Comparing companies

• Billing and Payments

1. We can check all of the companies online
2. Change of bank or payment plan

• Coverage and your share of the Bill

1. Answers to your general questions
2. Write letter to the companies contesting billing issues (Two month minimum wait)
3. The best method is to skip the insurance company and contact your doctor directly on miscoded items
4. Collection Agencies and your doctor and/or hospital are not getting paid on time so they are sending you to collections. Do not pay them; just send them your letter contesting the bill that we will have already sent to the insurance company

Let us help you get exactly what you want and need instead of headaches and wasted time that you will not get back. Insurance by Allied Brokers is the solution, YOUR solution!

Obamacare – A Private-Public Hybrid That the Public Pays For

A lot has been said and written about Obamacare and there are strong feelings on both sides of the argument. With no resolution in sight, expect both sides to continue to fight. But a look at some of the figures involved and the way the system works will show that there is one big loser in the whole process – the American taxpayer. How will this happen? Here’s how –

The Funnel

As most people know, Obamacare will cost the country $1.07 trillion in the next ten years. This money will be funneled through Washington D.C. to the insurance companies who will use it cover their losses. This is bad enough, but the worst part is that the Administration is trying to coerce people into buying these same health insurance products that they are anyway paying for through their taxes. So the American citizen first subsidizes the loss that the insurance companies will make and then will go an buy these products. In other words, people will pay twice for the same product.

How does this happen? Obamacare contains a reinsurance program that caps the costs of big claim on insurers for individual plans. Health insurance claims of up to $45,000 are paid for by the insurance companies. Anything beyond that is borne by the taxpayer in the form of subsidy to the insurers. This cap will bring more insurance companies into the program because of the safety it offers them. In other words, the government is working hard to create a single player system and establish a government monopoly over health care. It looks like the alliance of big business and big government has finally reached a takeoff point.

It Doesn’t Stop There

While the reinsurance program is going cost taxpayers a huge amount, there is another safety net for the insurance industry that the government (i.e. the taxpayer once again) will be paying for. This is called the Risk Corridor Program that will limit any possible overall loss that an insurance company may suffer. How will this happen? It’s like this – an insurance company estimates that its costs for the year. Say the figure I 100. But the actual costs, for whatever reason, are 110. The insurance company will not have to bear the extra cost of 10 on its own, like other businesses have to. Instead, it will have to accept just 102.4 of the total cost ( an extra 2.4) and the government through the taxpayer will bear the rest.

Rates Will Stay The Same

Given that the insurance companies will receive so much in the way of subsidy and protection from losses, it would be fair to expect that at least insurance costs will drop. While it is too soon to say with any certainty what may occur in the course of the year, experts feel that this will not happen. To be fair to the insurance companies, there is a reason for this. Obamacare is expected to attract more older and sick people into the health insurance pool and this will cost the insurance companies more in terms of claim payouts. In fact, it is even possible that over the next two years, rates may stay stable without the normal increases that could be expected. This will offer a good PR opportunity to the administrations spin doctors who will be able to trumpet the benefits of Obamacare. But the fact that this will be achieved at massive taxpayer costs cannot be ignored.

Obamacare may have its positives. But the person who will bear the cost of all this is the American taxpayer.

Got questions about your insurance? Call us at (650) 328-1000.

Smoking Could Cost You More With The Affordable Care Act In Place

The cost of cigarette smoking and other forms of tobacco use are well known, both in terms of effect on a smoker’s health and the rising cost of tobacco products. There can be no disputing the fact that smoking is injurious in more ways than one and can be lethal. However, this has not stopped the almost one in five Americans who still smoke regularly. Now, because of the tobacco use penalties that are present in the President’s health care law, the impact of smoking on their pockets will be even more severe.

Obamacare has a few little noted provisions that are only now coming to light and the impact of which are still being assessed. Among these is a provision that allows health insurers to charge individuals who smoke up to 50% more in their health insurance premiums. This will kick in from January 1 next year. While the exact nature and amount of the penalties will vary from case to case, a ball park estimate is possible. In the case of a smoker who is 55 years old, the additional financial burden by way of increased health insurance premiums will be in the range of $4,000 plus a year. For a smoker who is 60, the impact could be substantially higher – around $5,000 per year.

Since the increase in premium amounts is age related, younger smokers will pay less by way of the “smoking penalty.” This reduces the effective financial deterrent at the age when the habit develops and takes root. However, the impact is expected to be massive on older smokers because the high penalties appear at the age when most smoking related health complications begin to appear and when retirement and living on a fixed income is a fast approaching reality. Add to this the fact that smoking is highest among the lower income section of the population and the total impact of the increased premiums because of smoking becomes obvious.

Those who are covered under job related health insurance plans will be able to avoid the penalties by joining programs to enable them to give up the habit, but it is unlikely that this option will be available to individual policy holders. Additionally, although the law provides for those who are unable to get coverage under the new provisions to buy private healthcare insurance and provides for tax credits to keep the premiums at reasonable levels, this will not help smokers. The tax credits cannot be used to offset the higher premiums that may be charged on account to the insured person being a smoker.

The increase in premiums by up to 50% is a figure whose impact may not be obvious initially. A look at a possible scenario will make clear how huge an impact it will really have. If a person aged 60 years takes a health insurance policy under the new law the cost will be around $10,000 a year. The tax credits that can be availed of will bring this figure down to about $3,000. But the penalties could add another $5,000 to the cost of insurance, making the total $8,000 plus. If that individual is earning $35,000 per year, health insurance will cost him or her around 24% of the annual salary. By this calculation smoking will not just become very expensive, it will be financially unviable.

All those who have been trying to kick the habit and have not been able to succeed now have a huge new incentive to stop smoking. The cost of smoking, direct and indirect, is not a problem to be faced in the future. It is here and needs to be tackled now. And the only way to do this is by stopping.