My husband works for Coca Cola. He has for about 6 years. We have only had to make changes to our insurance if we wanted to change our policy. Last year he had a stroke in August. he was already off on a Workman's Comp isssue. He was hospitalized for about a week. When he was released at first the hopsital wanted him to go to an in house rehab.
At the last minute they decided to let him come home . I had to arrange our house with a shower seat, raised toliet seat and a wheel chair. He had to be taken to rehab a min. of 3 times a week.His Neuro. Dr has written a statement that states he was not able to make changes to his policy via the computer reguardless. However his health insurance was dropped because he could not go online and make changes to his policy.We have dental and vision but no health insurance. Can anybody help us. We are approaching open inrolement in October however we still wont be able to get insurance as far as coke is concerned until Jan 2007. Please help.
how can we help this guy?
Thursday, June 21, 2007
What’s Insured and What Isn’t
A SURVEY by the National Association of Insurance Commissioners has found that many people believe their homeowners’ insurance covers losses that are not, in fact, covered.
“We were a little surprised by the results,” said Sandy Praeger, Kansas’ insurance commissioner and the president-elect of the association.
The survey found that 33 percent of the heads of household who have homeowners’ insurance incorrectly believe that damage from a flood would be covered by their policies. “We warn people every year that damage caused by flooding will only be covered if they have a separate flood insurance policy,” Ms. Praeger said.
The survey also found other incorrect assumptions: 68 percent believe vehicles stolen from or damaged on their property are covered; 51 percent think their policy covers damage from a break in the main water line outside their houses; 37 percent think damage from a broken sewer line is covered; 34 percent assume mold damage is covered; and 31 percent think damage from termites or other infestations is covered.
The telephone survey of 1,000 people nationwide, conducted May 17-21 by International Communications Research, was paid for by the insurance commissioners’ group. Of the 1,000 people, 673 identified themselves as heads of household who had homeowners’ insurance and were included in the survey, which has a margin of sampling error of plus or minus 3.85 percentage points.
“Another thing many people don’t understand is the difference between actual-cash-value coverage and replacement-cost coverage,” Ms. Praeger said.
With actual-cash-value coverage, she said, the insurance covers only what it will cost to repair or replace damage to a home and its contents after depreciation has been taken into consideration, but replacement-cost coverage insures for what it costs to replace or rebuild without considering depreciation. The difference, Ms. Praeger said, can amount to thousands of dollars.
Ron Tepperman, the principal in the Manhattan insurance agency that bears his name, said many homeowners do not realize that certain valuables may be significantly underinsured under a standard policy.
“Most people think they’re fully covered for jewelry, antiques, stamps and coin collections,” Mr. Tepperman said. “But most policies provide only limited coverage for such items.” For example, he said, a standard policy might limit coverage for such items to just $500.
Another thing that many homeowners do not realize, Mr. Tepperman said, is that homeowners’ insurance does not cover personal property and equipment if it’s used for business or that the liability portion of the policy does not cover injuries if a customer or client gets hurt on the property.
Michael Spain, president of the Spain Agency in Mahopac, N.Y., said another hazard that many people believe is covered by a standard policy is earthquake damage. It isn’t.
“Nobody talks about it, hardly anyone has it, but a lot of people need it,” Mr. Spain said.
Robert J. Mackoul, the president of Mackoul & Associates, an insurance agency in Long Beach, N.Y., said that some co-op and condo owners believe they have insurance when they don’t. “Many people think that what’s inside their apartment is covered by the building’s policy when it isn’t,” he said.
What to do?
Homeowners should check with their insurance agents and should buy any additional insurance that may be necessary. They should also determine whether endorsements are available to increase coverage for items like jewelry, antiques and valuable collections. Those who use parts of their homes for business should buy a separate business policy.
“We were a little surprised by the results,” said Sandy Praeger, Kansas’ insurance commissioner and the president-elect of the association.
The survey found that 33 percent of the heads of household who have homeowners’ insurance incorrectly believe that damage from a flood would be covered by their policies. “We warn people every year that damage caused by flooding will only be covered if they have a separate flood insurance policy,” Ms. Praeger said.
The survey also found other incorrect assumptions: 68 percent believe vehicles stolen from or damaged on their property are covered; 51 percent think their policy covers damage from a break in the main water line outside their houses; 37 percent think damage from a broken sewer line is covered; 34 percent assume mold damage is covered; and 31 percent think damage from termites or other infestations is covered.
The telephone survey of 1,000 people nationwide, conducted May 17-21 by International Communications Research, was paid for by the insurance commissioners’ group. Of the 1,000 people, 673 identified themselves as heads of household who had homeowners’ insurance and were included in the survey, which has a margin of sampling error of plus or minus 3.85 percentage points.
“Another thing many people don’t understand is the difference between actual-cash-value coverage and replacement-cost coverage,” Ms. Praeger said.
With actual-cash-value coverage, she said, the insurance covers only what it will cost to repair or replace damage to a home and its contents after depreciation has been taken into consideration, but replacement-cost coverage insures for what it costs to replace or rebuild without considering depreciation. The difference, Ms. Praeger said, can amount to thousands of dollars.
Ron Tepperman, the principal in the Manhattan insurance agency that bears his name, said many homeowners do not realize that certain valuables may be significantly underinsured under a standard policy.
“Most people think they’re fully covered for jewelry, antiques, stamps and coin collections,” Mr. Tepperman said. “But most policies provide only limited coverage for such items.” For example, he said, a standard policy might limit coverage for such items to just $500.
Another thing that many homeowners do not realize, Mr. Tepperman said, is that homeowners’ insurance does not cover personal property and equipment if it’s used for business or that the liability portion of the policy does not cover injuries if a customer or client gets hurt on the property.
Michael Spain, president of the Spain Agency in Mahopac, N.Y., said another hazard that many people believe is covered by a standard policy is earthquake damage. It isn’t.
“Nobody talks about it, hardly anyone has it, but a lot of people need it,” Mr. Spain said.
Robert J. Mackoul, the president of Mackoul & Associates, an insurance agency in Long Beach, N.Y., said that some co-op and condo owners believe they have insurance when they don’t. “Many people think that what’s inside their apartment is covered by the building’s policy when it isn’t,” he said.
What to do?
Homeowners should check with their insurance agents and should buy any additional insurance that may be necessary. They should also determine whether endorsements are available to increase coverage for items like jewelry, antiques and valuable collections. Those who use parts of their homes for business should buy a separate business policy.
A Week Since She Vanished, and Still Little Light Is Shed
CANTON, Ohio, June 20 — From the moment her mother entered her home last Friday and found her missing, the circumstances surrounding the disappearance of Jessie Davis were most unsettling.
Someone had poured a bottle of bleach on the floor beside her bed, as if to do away with blood or other evidence. The bedside table was overturned, and Ms. Davis’s mattress was askew, its maroon comforter missing. Her badly soiled 2-year-old son, Blake, gave a chilling description to her mother, Patricia Porter, of what had happened: “Mommy’s crying. Mommy broke the table. Mommy in rug.”
The missing comforter, Ms. Porter has since said, is the same color as the Oriental rug in her own house, where Blake often plays.
Ms. Davis, 26 and nearly nine months pregnant, has not been seen for a week, and investigators have no suspects, Rick Perez, chief deputy sheriff of Stark County, said at a news conference Wednesday. They have repeatedly interviewed Blake’s father, Bobby L. Cutts Jr., 30, a Canton police officer and, until Wednesday, had described him as “fully cooperative.” But at the news conference Mr. Perez, though characterizing Mr. Cutts as “still communicating,” would not say that he was continuing to cooperate.
In an interview Tuesday with a Canton paper, The Repository, Mr. Cutts said he had nothing to do with Ms. Davis’s disappearance.
News reports have also identified Mr. Cutts as the father of Ms. Davis’s unborn daughter, though Mr. Perez said the authorities could not confirm that. In addition, he has two children with his estranged wife, and Nikki Giavasis, an actress in Los Angeles, told Fox News this week that he had a child with her as well. Ms. Giavasis said that Mr. Cutts had beaten and stalked her repeatedly over the last few years and that she had been granted several court orders of protection, one this year.
Ms. Davis was three weeks from her due date when she vanished. It appeared for a time that some clue to her disappearance might have turned up when a day-old baby girl was found in a wicker basket Monday night on the front porch of Don and Sue Redman, south of Wooster, about 35 miles from here.
But though the sheriff’s office is awaiting the results of DNA tests, the authorities are skeptical that the baby is that of the missing woman. Ms. Redman is a school nurse who has worked with young pregnant women, and there is speculation that the infant might belong to one such student.
Ms. Porter said she last spoke to her daughter at 9:20 p.m. on Wednesday of last week. Ms. Davis, who worked at an insurance office, seemed tired but happy. “She was very excited about Chloe,” the girl she was carrying, Ms. Porter said. “We had a normal conversation.”
She did not hear from her daughter the following day and, when she called her twice that evening, reached only her voice mail. “This was odd,” Ms. Porter said, because the two usually spoke five or six times a day. “I just figured she was tired and went to bed early.”
Last Friday morning, Ms. Porter and her daughter Whitney drove to the duplex where Ms. Davis and Blake lived. They found the back screen door open and the patio door unlocked. Ms. Davis’s car was in the garage, and the contents of her purse were strewn about the kitchen floor. The only one inside was little Blake.
Someone had poured a bottle of bleach on the floor beside her bed, as if to do away with blood or other evidence. The bedside table was overturned, and Ms. Davis’s mattress was askew, its maroon comforter missing. Her badly soiled 2-year-old son, Blake, gave a chilling description to her mother, Patricia Porter, of what had happened: “Mommy’s crying. Mommy broke the table. Mommy in rug.”
The missing comforter, Ms. Porter has since said, is the same color as the Oriental rug in her own house, where Blake often plays.
Ms. Davis, 26 and nearly nine months pregnant, has not been seen for a week, and investigators have no suspects, Rick Perez, chief deputy sheriff of Stark County, said at a news conference Wednesday. They have repeatedly interviewed Blake’s father, Bobby L. Cutts Jr., 30, a Canton police officer and, until Wednesday, had described him as “fully cooperative.” But at the news conference Mr. Perez, though characterizing Mr. Cutts as “still communicating,” would not say that he was continuing to cooperate.
In an interview Tuesday with a Canton paper, The Repository, Mr. Cutts said he had nothing to do with Ms. Davis’s disappearance.
News reports have also identified Mr. Cutts as the father of Ms. Davis’s unborn daughter, though Mr. Perez said the authorities could not confirm that. In addition, he has two children with his estranged wife, and Nikki Giavasis, an actress in Los Angeles, told Fox News this week that he had a child with her as well. Ms. Giavasis said that Mr. Cutts had beaten and stalked her repeatedly over the last few years and that she had been granted several court orders of protection, one this year.
Ms. Davis was three weeks from her due date when she vanished. It appeared for a time that some clue to her disappearance might have turned up when a day-old baby girl was found in a wicker basket Monday night on the front porch of Don and Sue Redman, south of Wooster, about 35 miles from here.
But though the sheriff’s office is awaiting the results of DNA tests, the authorities are skeptical that the baby is that of the missing woman. Ms. Redman is a school nurse who has worked with young pregnant women, and there is speculation that the infant might belong to one such student.
Ms. Porter said she last spoke to her daughter at 9:20 p.m. on Wednesday of last week. Ms. Davis, who worked at an insurance office, seemed tired but happy. “She was very excited about Chloe,” the girl she was carrying, Ms. Porter said. “We had a normal conversation.”
She did not hear from her daughter the following day and, when she called her twice that evening, reached only her voice mail. “This was odd,” Ms. Porter said, because the two usually spoke five or six times a day. “I just figured she was tired and went to bed early.”
Last Friday morning, Ms. Porter and her daughter Whitney drove to the duplex where Ms. Davis and Blake lived. They found the back screen door open and the patio door unlocked. Ms. Davis’s car was in the garage, and the contents of her purse were strewn about the kitchen floor. The only one inside was little Blake.
Putting Your Life Insurance on the Block
In recent years, a new option has emerged for older adults who own life-insurance policies they no longer want or perhaps can't afford to maintain.
The traditional process for cash-value policies involved surrendering the policy to the insurance company and receiving the accumulated savings component. Today, investors will buy that policy for considerably more, although less than the benefit payable upon death. They on occasion also will buy "term" policies that pay a death benefit but don't have a savings component.
When such deals -- known as life settlements -- work as advertised, they can free up substantial amounts of money that potentially can be used however the policy owner sees fit. One example: investing for higher returns than are typically available from an insurance policy.
Watch for Pitfalls
That said, life settlements have significant potential pitfalls. The most serious is that it's extremely difficult for sellers of a policy to know whether they're getting the best deal possible. As a result, life settlements have been drawing the attention of regulators who allege backroom dealings and predatory sales tactics.
There are a host of other issues to consider. The payout from a life settlement can lead to a big tax bill and affect Medicaid eligibility. (In contrast, at a policyholder's death, life-insurance benefits paid to heirs aren't subject to income tax.) Your medical history can be widely shared with many parties.
In the end, there may be other more attractive options, such as exchanging your policy for another insurance offering that can potentially earn higher returns.
The pitch is "free money," says Glenn Daily, a fee-only insurance consultant in New York who provides independent evaluations of life-settlement proposals. And while it can be a good strategy under certain circumstances, "it doesn't mean you shouldn't ask a long series of questions."
Life settlements usually are aimed at policies with a death benefit of at least $250,000, although sometimes policies with death benefits as low as $100,000 will be considered. Policyholders need to be at least 65 years old and have a life expectancy at the time of the purchase of at least two years but no more than 12 to 15 years, depending on the buyer's criteria.
The buyers are mainly investment firms that, after purchasing the policies, continue to pay the premiums and collect the benefit when the original holder dies.
Obviously, it's in the investors' interest to keep the purchase price down. They also would prefer if you died sooner rather than later; a policy from a holder who is in declining health, or, say, is an active smoker, could be worth more than a comparable policy from someone who is healthy.
Acting as a go-between between the policyholder and the investor are brokers. Ideally the broker, who is supposed to act in the seller's best interest, will submit the policy to different potential buyers who might make a bid
Factors affecting the purchase price offered include your age, medical condition and resulting life expectancy, the type of policy and the premiums involved in keeping the policy in force. It's possible to get widely differing bids.
From this purchase price a number of fees are deducted, the largest of which is usually the broker's commission.
The problem is "there's no transparency -- you're reliant on your broker to shop your policy around," says Mary Schapiro, chairman of the National Association of Securities Dealers, which published an "Investor Alert" on life settlements last month
Ask the broker for a full accounting of what bids were received and what steps were taken to shop it around, the NASD suggests. In addition, it's important to ask if the broker is affiliated with a particular life-settlement company and thus may only be getting a bid from that one firm.
A Percentage of What?
Sellers should ask about commissions and any other charges.
Standard brokers' commissions have been 6%, but there may be subtle differences that can cost you big money. For example, some brokers charge commissions based on the purchase price, but others charge based on the policy's face value, a bigger figure -- which results in substantially less money in your pocket.
"If it's 6% of face value, that could be 20% or more of the purchase price," says Mr. Daily, who adds that policyholders shouldn't be afraid to haggle. "Commissions are negotiable."
Meanwhile, questions have been raised about collusion among buyers and brokers. Last October, former New York Attorney General Eliot Spitzer filed suit against one of the largest life-settlement buyers, Coventry First, accusing the firm of bid-rigging with one of its competitors that significantly short-changed investors.
In this alleged scheme, Coventry would make payments to brokers in exchange for them tilting the bidding process to ensure that Coventry was able to purchase the policies at lower prices. Emails presented as evidence showed Coventry officials haggling with brokers over what Coventry would have to pay to win the auctions. In one instance, Coventry is alleged to have paid a broker $200,000 in exchange for not presenting to the policyholder a bid that would have topped Coventry's bid on a $10 million policy by $425,000.
Coventry denies in court filings that the firm did anything wrong, saying it didn't have to disclose the payments to policyholders.
Other Routes to Consider
There may be other options that should be considered. If it's a question of not being able to afford the policy premiums, you can ask if dividends or the cash value from the policy can help with the payments. You also can ask a family member to contribute.
If there's a concern that the policy is earning subpar returns, under certain circumstances it can be exchanged tax-free for another insurance policy or an annuity -- if losing the death benefit isn't a major concern.
John Skar, chief risk officer at Massachusetts Mutual Life Insurance, and a vocal critic of life settlements, says policyholders should keep in mind that sophisticated investors believe they are getting good value in the policies they buy. But once commissions and taxes are taken into consideration, most policyholders who sell are going to have a hard time matching what they have given up, he argues.
The traditional process for cash-value policies involved surrendering the policy to the insurance company and receiving the accumulated savings component. Today, investors will buy that policy for considerably more, although less than the benefit payable upon death. They on occasion also will buy "term" policies that pay a death benefit but don't have a savings component.
When such deals -- known as life settlements -- work as advertised, they can free up substantial amounts of money that potentially can be used however the policy owner sees fit. One example: investing for higher returns than are typically available from an insurance policy.
Watch for Pitfalls
That said, life settlements have significant potential pitfalls. The most serious is that it's extremely difficult for sellers of a policy to know whether they're getting the best deal possible. As a result, life settlements have been drawing the attention of regulators who allege backroom dealings and predatory sales tactics.
There are a host of other issues to consider. The payout from a life settlement can lead to a big tax bill and affect Medicaid eligibility. (In contrast, at a policyholder's death, life-insurance benefits paid to heirs aren't subject to income tax.) Your medical history can be widely shared with many parties.
In the end, there may be other more attractive options, such as exchanging your policy for another insurance offering that can potentially earn higher returns.
The pitch is "free money," says Glenn Daily, a fee-only insurance consultant in New York who provides independent evaluations of life-settlement proposals. And while it can be a good strategy under certain circumstances, "it doesn't mean you shouldn't ask a long series of questions."
Life settlements usually are aimed at policies with a death benefit of at least $250,000, although sometimes policies with death benefits as low as $100,000 will be considered. Policyholders need to be at least 65 years old and have a life expectancy at the time of the purchase of at least two years but no more than 12 to 15 years, depending on the buyer's criteria.
The buyers are mainly investment firms that, after purchasing the policies, continue to pay the premiums and collect the benefit when the original holder dies.
Obviously, it's in the investors' interest to keep the purchase price down. They also would prefer if you died sooner rather than later; a policy from a holder who is in declining health, or, say, is an active smoker, could be worth more than a comparable policy from someone who is healthy.
Acting as a go-between between the policyholder and the investor are brokers. Ideally the broker, who is supposed to act in the seller's best interest, will submit the policy to different potential buyers who might make a bid
Factors affecting the purchase price offered include your age, medical condition and resulting life expectancy, the type of policy and the premiums involved in keeping the policy in force. It's possible to get widely differing bids.
From this purchase price a number of fees are deducted, the largest of which is usually the broker's commission.
The problem is "there's no transparency -- you're reliant on your broker to shop your policy around," says Mary Schapiro, chairman of the National Association of Securities Dealers, which published an "Investor Alert" on life settlements last month
Ask the broker for a full accounting of what bids were received and what steps were taken to shop it around, the NASD suggests. In addition, it's important to ask if the broker is affiliated with a particular life-settlement company and thus may only be getting a bid from that one firm.
A Percentage of What?
Sellers should ask about commissions and any other charges.
Standard brokers' commissions have been 6%, but there may be subtle differences that can cost you big money. For example, some brokers charge commissions based on the purchase price, but others charge based on the policy's face value, a bigger figure -- which results in substantially less money in your pocket.
"If it's 6% of face value, that could be 20% or more of the purchase price," says Mr. Daily, who adds that policyholders shouldn't be afraid to haggle. "Commissions are negotiable."
Meanwhile, questions have been raised about collusion among buyers and brokers. Last October, former New York Attorney General Eliot Spitzer filed suit against one of the largest life-settlement buyers, Coventry First, accusing the firm of bid-rigging with one of its competitors that significantly short-changed investors.
In this alleged scheme, Coventry would make payments to brokers in exchange for them tilting the bidding process to ensure that Coventry was able to purchase the policies at lower prices. Emails presented as evidence showed Coventry officials haggling with brokers over what Coventry would have to pay to win the auctions. In one instance, Coventry is alleged to have paid a broker $200,000 in exchange for not presenting to the policyholder a bid that would have topped Coventry's bid on a $10 million policy by $425,000.
Coventry denies in court filings that the firm did anything wrong, saying it didn't have to disclose the payments to policyholders.
Other Routes to Consider
There may be other options that should be considered. If it's a question of not being able to afford the policy premiums, you can ask if dividends or the cash value from the policy can help with the payments. You also can ask a family member to contribute.
If there's a concern that the policy is earning subpar returns, under certain circumstances it can be exchanged tax-free for another insurance policy or an annuity -- if losing the death benefit isn't a major concern.
John Skar, chief risk officer at Massachusetts Mutual Life Insurance, and a vocal critic of life settlements, says policyholders should keep in mind that sophisticated investors believe they are getting good value in the policies they buy. But once commissions and taxes are taken into consideration, most policyholders who sell are going to have a hard time matching what they have given up, he argues.
10 Answers for Health Insurance Options
As medical care has gotten more complicated, so has the variety of medical insurance options. You've got FSAs, or flexible spending accounts, and HRAs, or health reimbursement accounts, and even HSAs, health savings accounts. Which is best for you? Or should you ignore them all and just buy a medical discount card?You'll need to do some homework, particularly if it's all new to you. Check out Bankrate's story, "Sorting out your medical insurance options," to get a full picture.To help you sort it out, here are the answers to 10 questions you should consider before you make your choice.
10 questions about FSAs, HRAs, HSAs and medical discount cards:
FSA
1. Who pays? Employee, company or both.
2. How much money goes into them? Company sets limit. Employees decide how much to put into them within that limit.
3. Who owns it? Company.
4. Does the money in it generate interest? No.
5. Can you take it with you when you leave the company? No.
6. Do you have to repay anything if you leave the company before the end of the year? No.
7. Does unused money "roll over" and get added to account at the end of the year? IRS says no.
8. How does the IRS treat employee contributions? Usually not taxed.
9. How does the IRS treat reimbursements for medical treatment? Not taxed.
10. Can the money be used for nonhealth-care purposes? No.
HRA
1. Who pays? Company.
2. How much money goes into them? Company sets limit.
3. Who owns it? Company.
4. Does the money in it generate interest? No.
5. Can you take it with you when you leave the company? No.
6. Do you have to repay anything if you leave the company before the end of the year? No.
7. Does unused money "roll over" and get added to account at the end of the year? Up to company.
8. How does the IRS treat employee contributions? Does not apply. Employees do not contribute.
9. How does the IRS treat reimbursements for medical treatment? Not taxed. 10. Can the money be used for nonhealth-care purposes? No.
HSA
1. Who pays?Employee, company or both.
2. How much money goes into them? IRS sets limit. Company and employee each chooses how much to put in within that limit. The 2006 limit is $2,700 for individuals, $5,450 for families. People 55 or older can add $700.
3. Who owns it? Employee.
4. Does the money in it generate interest? Yes (tax free).
5. Can you take it with you when you leave the company? Yes.
6. Do you have to repay anything if you leave the company before the end of the year? No.
7. Does unused money "roll over" and get added to account at the end of the year? Yes.
8. How does the IRS treat employee contributions? Usually not taxed.
9. How does the IRS treat reimbursements for medical treatment? Not taxed.
10. Can the money be used for nonhealth-care purposes? Yes, but there is a tax penalty.
MEDICAL DISCOUNT CARDS
1. Who pays? Employee, but some companies do supply them.
2. How much money goes into them? Prices generally range from $10 to $40 a month, with different providers offering different discounts for health, dental and vision care. Some also offer prescription drug discounts.
3. Who owns it? Employee.
4. Does the money in it generate interest? There is no money in it.
5. Can you take it with you when you leave the company? Yes, if you paid for it. No, if it is a company-supplied card.
6. Do you have to repay anything if you leave the company before the end of the year? No.
7. Does unused money "roll over" and get added to account at the end of the year? There is no money in it.
8. How does the IRS treat employee contributions? Money spent on cards is taxed, but consult your tax preparer.
9. How does the IRS treat reimbursements for medical treatment? There are no reimbursements.
10. Can the money be used for nonhealth-care purposes? No.
10 questions about FSAs, HRAs, HSAs and medical discount cards:
FSA
1. Who pays? Employee, company or both.
2. How much money goes into them? Company sets limit. Employees decide how much to put into them within that limit.
3. Who owns it? Company.
4. Does the money in it generate interest? No.
5. Can you take it with you when you leave the company? No.
6. Do you have to repay anything if you leave the company before the end of the year? No.
7. Does unused money "roll over" and get added to account at the end of the year? IRS says no.
8. How does the IRS treat employee contributions? Usually not taxed.
9. How does the IRS treat reimbursements for medical treatment? Not taxed.
10. Can the money be used for nonhealth-care purposes? No.
HRA
1. Who pays? Company.
2. How much money goes into them? Company sets limit.
3. Who owns it? Company.
4. Does the money in it generate interest? No.
5. Can you take it with you when you leave the company? No.
6. Do you have to repay anything if you leave the company before the end of the year? No.
7. Does unused money "roll over" and get added to account at the end of the year? Up to company.
8. How does the IRS treat employee contributions? Does not apply. Employees do not contribute.
9. How does the IRS treat reimbursements for medical treatment? Not taxed. 10. Can the money be used for nonhealth-care purposes? No.
HSA
1. Who pays?Employee, company or both.
2. How much money goes into them? IRS sets limit. Company and employee each chooses how much to put in within that limit. The 2006 limit is $2,700 for individuals, $5,450 for families. People 55 or older can add $700.
3. Who owns it? Employee.
4. Does the money in it generate interest? Yes (tax free).
5. Can you take it with you when you leave the company? Yes.
6. Do you have to repay anything if you leave the company before the end of the year? No.
7. Does unused money "roll over" and get added to account at the end of the year? Yes.
8. How does the IRS treat employee contributions? Usually not taxed.
9. How does the IRS treat reimbursements for medical treatment? Not taxed.
10. Can the money be used for nonhealth-care purposes? Yes, but there is a tax penalty.
MEDICAL DISCOUNT CARDS
1. Who pays? Employee, but some companies do supply them.
2. How much money goes into them? Prices generally range from $10 to $40 a month, with different providers offering different discounts for health, dental and vision care. Some also offer prescription drug discounts.
3. Who owns it? Employee.
4. Does the money in it generate interest? There is no money in it.
5. Can you take it with you when you leave the company? Yes, if you paid for it. No, if it is a company-supplied card.
6. Do you have to repay anything if you leave the company before the end of the year? No.
7. Does unused money "roll over" and get added to account at the end of the year? There is no money in it.
8. How does the IRS treat employee contributions? Money spent on cards is taxed, but consult your tax preparer.
9. How does the IRS treat reimbursements for medical treatment? There are no reimbursements.
10. Can the money be used for nonhealth-care purposes? No.
Insurer canceled my coverage because I got sick
My battle with cancer, an insurer that canceled my coverage because I got sick, and tens of thousands of dollars of debt started out as a compassionate joke.My father was having health problems that his doctor didn抰 understand, so I suggested that he go get a full body scan, something my mother had done a few years ago. Sometimes it finds hidden things.
During the Christmas of 2005, he said, 揙K, I抣l do it if you do it.?He was more than a little nervous so I decided to humor him. I called the clinic where my mother had gone and they said it would be a couple of months, unless we would go Friday the 13th of January 2006. We抮e not superstitious, so that was fine with us. A friend and his wife went with us as well. I thought I was there just to support my Dad. Unlike him, I didn抰 even order a consultation with the doctor afterward. This was his appointment, not mine.
About a week later, we went in to go over his results, and the doctor said my dad was fine but that she needed to talk with me. She said there was something odd, and that she wanted me to do an abdomen scan that would provide more detail.We did that on Jan. 31, 2006. I got the results on Feb. 3, 2006 over the phone. They said there was a definite tumor on my right kidney and they thought I should get right to my doctor. There was no discussion yet of cancer. At that moment, I was certainly grateful that my new insurance with PacifiCare had kicked in. They approved it on Jan. 24, 2006 taking effect Feb. 1, 2006. It wasn抰 until a good deal later that I learned that I had an aggressive form of kidney cancer and that one of my kidneys would have to be removed. This was done May 12, 2006.I had first visited my insurance broker in November of 2005, and after some back and forth he persuaded me to go with PacifiCare. I filled out the application Jan. 10, 2006 but on Jan. 18, 2006 he told me I had to submit an updated 2006 form. But he told me just to fill out the authorization pages and he抎 fill out the rest from my previous application.
On Aug. 13, 2006 I got a cancellation notice from PacifiCare. It said that I knew when I applied that I had kidney cancer, and accused me of fraud. If they had called the agent they would have learned I started the enrollment process in November, and the agent knew I was going to have the scan. But I wasn抰 diagnosed with cancer until after the coverage actually started. If I抎 known I was ill, wouldn抰 I have bought something better than a crummy HMO?Not only have I had to put up with PacifiCare抯 illegal, arbitrary cancellation of my policy, but my doctors failed to accurately diagnose my cancer, delaying the correct treatment and wasting precious time. As if that wasn抰 enough, PacifiCare refused to pay the bills for my kidney surgery by the experts at the Cleveland Clinic because it was not in the company抯 network.
PacifiCare didn抰 tell me that it wouldn抰 cover the surgery until the day before the operation, waiting until after I had already traveled across the country, and contradicting the recommendation of my in-network doctor. I also found out that since I didn抰 have the PacifiCare insurance for 18 months, all other insurers could deny me coverage for having a preexisting condition. Now I am impossible to insure. Brokers tell me I抣l 搉ever be covered.?br /> I have paid out of pocket for lung and abdomen scans and I抦 supposed to have them every six months梖or life. Together, they are $1,000 each time. I still have to figure out how to deal with the $25,000 I owe my parents for a loan they gave me to partially pay for the $65,000 surgery that PacifiCare denied. I
don抰 know what the future will hold. I抦 a self-employed 34 year old and still not working as much as before all this. My lawsuit against Pacificare will probably take years to complete.The only good thing about this story is that my Dad saved my life. My chances of survival are much better with the early detection. For that I抦 grateful. The problem now is how I can afford to stay healthy.
During the Christmas of 2005, he said, 揙K, I抣l do it if you do it.?He was more than a little nervous so I decided to humor him. I called the clinic where my mother had gone and they said it would be a couple of months, unless we would go Friday the 13th of January 2006. We抮e not superstitious, so that was fine with us. A friend and his wife went with us as well. I thought I was there just to support my Dad. Unlike him, I didn抰 even order a consultation with the doctor afterward. This was his appointment, not mine.
About a week later, we went in to go over his results, and the doctor said my dad was fine but that she needed to talk with me. She said there was something odd, and that she wanted me to do an abdomen scan that would provide more detail.We did that on Jan. 31, 2006. I got the results on Feb. 3, 2006 over the phone. They said there was a definite tumor on my right kidney and they thought I should get right to my doctor. There was no discussion yet of cancer. At that moment, I was certainly grateful that my new insurance with PacifiCare had kicked in. They approved it on Jan. 24, 2006 taking effect Feb. 1, 2006. It wasn抰 until a good deal later that I learned that I had an aggressive form of kidney cancer and that one of my kidneys would have to be removed. This was done May 12, 2006.I had first visited my insurance broker in November of 2005, and after some back and forth he persuaded me to go with PacifiCare. I filled out the application Jan. 10, 2006 but on Jan. 18, 2006 he told me I had to submit an updated 2006 form. But he told me just to fill out the authorization pages and he抎 fill out the rest from my previous application.
On Aug. 13, 2006 I got a cancellation notice from PacifiCare. It said that I knew when I applied that I had kidney cancer, and accused me of fraud. If they had called the agent they would have learned I started the enrollment process in November, and the agent knew I was going to have the scan. But I wasn抰 diagnosed with cancer until after the coverage actually started. If I抎 known I was ill, wouldn抰 I have bought something better than a crummy HMO?Not only have I had to put up with PacifiCare抯 illegal, arbitrary cancellation of my policy, but my doctors failed to accurately diagnose my cancer, delaying the correct treatment and wasting precious time. As if that wasn抰 enough, PacifiCare refused to pay the bills for my kidney surgery by the experts at the Cleveland Clinic because it was not in the company抯 network.
PacifiCare didn抰 tell me that it wouldn抰 cover the surgery until the day before the operation, waiting until after I had already traveled across the country, and contradicting the recommendation of my in-network doctor. I also found out that since I didn抰 have the PacifiCare insurance for 18 months, all other insurers could deny me coverage for having a preexisting condition. Now I am impossible to insure. Brokers tell me I抣l 搉ever be covered.?br /> I have paid out of pocket for lung and abdomen scans and I抦 supposed to have them every six months梖or life. Together, they are $1,000 each time. I still have to figure out how to deal with the $25,000 I owe my parents for a loan they gave me to partially pay for the $65,000 surgery that PacifiCare denied. I
don抰 know what the future will hold. I抦 a self-employed 34 year old and still not working as much as before all this. My lawsuit against Pacificare will probably take years to complete.The only good thing about this story is that my Dad saved my life. My chances of survival are much better with the early detection. For that I抦 grateful. The problem now is how I can afford to stay healthy.
Insurer canceled my coverage because I got sick
My battle with cancer, an insurer that canceled my coverage because I got sick, and tens of thousands of dollars of debt started out as a compassionate joke.My father was having health problems that his doctor didn抰 understand, so I suggested that he go get a full body scan, something my mother had done a few years ago. Sometimes it finds hidden things.
During the Christmas of 2005, he said, 揙K, I抣l do it if you do it.?He was more than a little nervous so I decided to humor him. I called the clinic where my mother had gone and they said it would be a couple of months, unless we would go Friday the 13th of January 2006. We抮e not superstitious, so that was fine with us. A friend and his wife went with us as well. I thought I was there just to support my Dad. Unlike him, I didn抰 even order a consultation with the doctor afterward. This was his appointment, not mine.
About a week later, we went in to go over his results, and the doctor said my dad was fine but that she needed to talk with me. She said there was something odd, and that she wanted me to do an abdomen scan that would provide more detail.We did that on Jan. 31, 2006. I got the results on Feb. 3, 2006 over the phone. They said there was a definite tumor on my right kidney and they thought I should get right to my doctor. There was no discussion yet of cancer. At that moment, I was certainly grateful that my new insurance with PacifiCare had kicked in. They approved it on Jan. 24, 2006 taking effect Feb. 1, 2006. It wasn抰 until a good deal later that I learned that I had an aggressive form of kidney cancer and that one of my kidneys would have to be removed. This was done May 12, 2006.I had first visited my insurance broker in November of 2005, and after some back and forth he persuaded me to go with PacifiCare. I filled out the application Jan. 10, 2006 but on Jan. 18, 2006 he told me I had to submit an updated 2006 form. But he told me just to fill out the authorization pages and he抎 fill out the rest from my previous application.
On Aug. 13, 2006 I got a cancellation notice from PacifiCare. It said that I knew when I applied that I had kidney cancer, and accused me of fraud. If they had called the agent they would have learned I started the enrollment process in November, and the agent knew I was going to have the scan. But I wasn抰 diagnosed with cancer until after the coverage actually started. If I抎 known I was ill, wouldn抰 I have bought something better than a crummy HMO?Not only have I had to put up with PacifiCare抯 illegal, arbitrary cancellation of my policy, but my doctors failed to accurately diagnose my cancer, delaying the correct treatment and wasting precious time. As if that wasn抰 enough, PacifiCare refused to pay the bills for my kidney surgery by the experts at the Cleveland Clinic because it was not in the company抯 network.
PacifiCare didn抰 tell me that it wouldn抰 cover the surgery until the day before the operation, waiting until after I had already traveled across the country, and contradicting the recommendation of my in-network doctor. I also found out that since I didn抰 have the PacifiCare insurance for 18 months, all other insurers could deny me coverage for having a preexisting condition. Now I am impossible to insure. Brokers tell me I抣l 搉ever be covered.?br /> I have paid out of pocket for lung and abdomen scans and I抦 supposed to have them every six months梖or life. Together, they are $1,000 each time. I still have to figure out how to deal with the $25,000 I owe my parents for a loan they gave me to partially pay for the $65,000 surgery that PacifiCare denied. I
don抰 know what the future will hold. I抦 a self-employed 34 year old and still not working as much as before all this. My lawsuit against Pacificare will probably take years to complete.The only good thing about this story is that my Dad saved my life. My chances of survival are much better with the early detection. For that I抦 grateful. The problem now is how I can afford to stay healthy.
During the Christmas of 2005, he said, 揙K, I抣l do it if you do it.?He was more than a little nervous so I decided to humor him. I called the clinic where my mother had gone and they said it would be a couple of months, unless we would go Friday the 13th of January 2006. We抮e not superstitious, so that was fine with us. A friend and his wife went with us as well. I thought I was there just to support my Dad. Unlike him, I didn抰 even order a consultation with the doctor afterward. This was his appointment, not mine.
About a week later, we went in to go over his results, and the doctor said my dad was fine but that she needed to talk with me. She said there was something odd, and that she wanted me to do an abdomen scan that would provide more detail.We did that on Jan. 31, 2006. I got the results on Feb. 3, 2006 over the phone. They said there was a definite tumor on my right kidney and they thought I should get right to my doctor. There was no discussion yet of cancer. At that moment, I was certainly grateful that my new insurance with PacifiCare had kicked in. They approved it on Jan. 24, 2006 taking effect Feb. 1, 2006. It wasn抰 until a good deal later that I learned that I had an aggressive form of kidney cancer and that one of my kidneys would have to be removed. This was done May 12, 2006.I had first visited my insurance broker in November of 2005, and after some back and forth he persuaded me to go with PacifiCare. I filled out the application Jan. 10, 2006 but on Jan. 18, 2006 he told me I had to submit an updated 2006 form. But he told me just to fill out the authorization pages and he抎 fill out the rest from my previous application.
On Aug. 13, 2006 I got a cancellation notice from PacifiCare. It said that I knew when I applied that I had kidney cancer, and accused me of fraud. If they had called the agent they would have learned I started the enrollment process in November, and the agent knew I was going to have the scan. But I wasn抰 diagnosed with cancer until after the coverage actually started. If I抎 known I was ill, wouldn抰 I have bought something better than a crummy HMO?Not only have I had to put up with PacifiCare抯 illegal, arbitrary cancellation of my policy, but my doctors failed to accurately diagnose my cancer, delaying the correct treatment and wasting precious time. As if that wasn抰 enough, PacifiCare refused to pay the bills for my kidney surgery by the experts at the Cleveland Clinic because it was not in the company抯 network.
PacifiCare didn抰 tell me that it wouldn抰 cover the surgery until the day before the operation, waiting until after I had already traveled across the country, and contradicting the recommendation of my in-network doctor. I also found out that since I didn抰 have the PacifiCare insurance for 18 months, all other insurers could deny me coverage for having a preexisting condition. Now I am impossible to insure. Brokers tell me I抣l 搉ever be covered.?br /> I have paid out of pocket for lung and abdomen scans and I抦 supposed to have them every six months梖or life. Together, they are $1,000 each time. I still have to figure out how to deal with the $25,000 I owe my parents for a loan they gave me to partially pay for the $65,000 surgery that PacifiCare denied. I
don抰 know what the future will hold. I抦 a self-employed 34 year old and still not working as much as before all this. My lawsuit against Pacificare will probably take years to complete.The only good thing about this story is that my Dad saved my life. My chances of survival are much better with the early detection. For that I抦 grateful. The problem now is how I can afford to stay healthy.
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