Presented by:Bill Peterson
   In 2011, the average family’s health insurance    premium increased to more than $15,000.1   In 2008, the average Ame...
   With low-deductible plans, consumers have    peace of mind that a major medical event (i.e. an    accident or critical...
   By choosing a plan with a higher deductible, a    consumer receives comparable benefits for a    lower monthly premium...
   Accidents can create a serious financial burden on major    medical policy holders.   Compliment your health insuranc...
   Every minute:    ◦ Two people in the U.S. suffer a coronary event1    ◦ A person dies from a coronary event1    ◦ Two ...
   Every minute:    ◦ Two people in the U.S. suffer a coronary event1    ◦ A person dies from a coronary event1    ◦ Two ...
Major medical • Accident • Critical IllnessSample family:                  • Male (40)             • Female (37)          ...
Major medical • Accident • Critical IllnessSample family:               • Male (40)    • Female (37)        • 2 ChildrenMa...
Major medical • Accident • Critical Illness                                    Average PPOMajor Medical ($25 co-pay)      ...
Enjoy the lower premiums of a higher-deductible major medical plan, and manage yourexposure for out-of-pocket expenses by ...
Proven Solution Lowering Costs
Proven Solution Lowering Costs
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Proven Solution Lowering Costs

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Proven Solution Lowering Costs

  1. 1. Presented by:Bill Peterson
  2. 2.  In 2011, the average family’s health insurance premium increased to more than $15,000.1 In 2008, the average American family spent less than $2,500 per year in out of pocket medical expenses. 1 This means that a family with a $2,000 major medical deductible is not likely to spend enough on out-of-pocket expenses to meet their annual deductible. The results is a monthly health insurance premium that is far too expensive for the amount of benefits that are actually used. 1 Kaiser Family Foundation
  3. 3.  With low-deductible plans, consumers have peace of mind that a major medical event (i.e. an accident or critical illness) won’t deplete their savings or leave them bankrupt. Unfortunately, the reduced risk of a low- deductible insurance plan comes at a higher cost in the form of higher monthly premiums.
  4. 4.  By choosing a plan with a higher deductible, a consumer receives comparable benefits for a lower monthly premium. The drawback of a high-deductible plan is the considerable amount of money that the insured would pay in the event of an accident or critical illness.
  5. 5.  Accidents can create a serious financial burden on major medical policy holders. Compliment your health insurance coverage with an accident plan that will help cover your deductible, co-insurance and other expenses related to a covered event (up to pre- determined benefit amount)
  6. 6.  Every minute: ◦ Two people in the U.S. suffer a coronary event1 ◦ A person dies from a coronary event1 ◦ Two people are diagnosed with cancer2 ◦ A person suffers a stroke1 Critical Illness insurance plans pay a lump-sum amount upon diagnosis of a covered illness or condition. This benefit can be used to cover medical expenses, household expenses, and even help offset lost income from missing work during recovery. 1. Heart Disease and Stroke Statistics – 2008 Update, American Heart Association 2. Cancer Facts and Figures, American Cancer Society, 2006
  7. 7.  Every minute: ◦ Two people in the U.S. suffer a coronary event1 ◦ A person dies from a coronary event1 ◦ Two people are diagnosed with cancer2 ◦ A person suffers a stroke1 Critical Illness insurance plans pay a lump-sum amount upon diagnosis of a covered illness or condition. This benefit can be used to cover medical expenses, household expenses, and even help offset lost income from missing work during recovery. 1. Heart Disease and Stroke Statistics – 2008 Update, American Heart Association 2. Cancer Facts and Figures, American Cancer Society, 2006
  8. 8. Major medical • Accident • Critical IllnessSample family: • Male (40) • Female (37) • 2 Children Major Medical ($25 co-pay) Major Medical (no co-pay)Major Medical ($25 co-pay) + Accident and CI + Accident and CIDeductible $1000 Deductible $5000 Deductible $5000Office visit co-pay $25 Office visit co-pay $25 Office visit co-pay $0 Medical Premium $580 Medical Premium $398 Accident Plan $59.95 Accident Plan $59.95 Critical Illness $48 Critical Illness $48Total Total Total $965.00 $687.95 $505.95Premium Premium Premium Total savings: Total savings: $277.05 per month $495.05 per month $3,324.60 per year $5,508.60 per year Pairing an accident and critical illness policy with a higher deductible major medical policy creates a combined benefit plan that greatly reduces your monthly medical insurance premium. In addition to helping policyholders satisfy their deductible on a major medical plan, the critical illness plan may also provide funds to cover any additional out-of-pocket expenses or lost income that may result from a serious illness.
  9. 9. Major medical • Accident • Critical IllnessSample family: • Male (40) • Female (37) • 2 ChildrenMajor Medical ($25 co-pay) Major Medical (NO co-pay)Deductible $5,000 Deductible $5,000Office visit co-pay $25 Office visit co-pay $0 benefitMonthly Premium $965 Monthly Premium $398Annual Premium $6,960 Annual Premium $4,776 Total savings on Premiums: $182 per month $2,184 per year
  10. 10. Major medical • Accident • Critical Illness Average PPOMajor Medical ($25 co-pay) discounted price Average retail price for $80 $120 for office visit office visitDeductible $5,000 w/o co-payOffice visit co-pay $25 Additional Premium ÷ Number of office visitsMonthly Premium $965 27.3 Cost of office visit w/o co-pay needed to justify 27.3 = additional premium $2,184 ÷ $80Annual Premium $6,960 Average number of 10 office visits per yearMajor Medical (NO co-pay) Average # of office visits X Co-payDeductible $5,000 Annual out-of-pocket $250 $250Office visit co-pay $0 benefit costs for office visits = 10 ÷ $25Monthly Premium $398 Additional premium “True cost” for plan + Annual office visit co-pays $2,344 $2,344Annual Premium $4,776 with co-pays = $2,184 + $250 “True cost” of planTotal savings on Premiums: True out-of-pocket $234 ÷ No. of annual office visits $182 per month $234 cost for each office visit = $2,184 per year $2,234 ÷ 10
  11. 11. Enjoy the lower premiums of a higher-deductible major medical plan, and manage yourexposure for out-of-pocket expenses by adding an accident and critical illness policy to yourhealth insurance program. Major Medical Personal Critical Illness Plan Accident Plan Plan Medical with co-pays $10,000 per occurrence $10,000 lump-sum ($5,000 Deductible) ($100 deductible) benefit per occurrence $ ________ $ ________ $ ________ HSA or no co-pays ($5,000 deductible) $ ________ Total Monthly Premium $ ________

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