Health Insurance Questions Index

Q: I need short term medical insurance for my wife, age 63, for about 26 months until she becomes eligible for Medicare. I am concerned that if a medical condition develops, she will not be eligible to reapply for a short term medical insurance policy.

A: Excellent coverage is available with a simple online application. The short term medical insurance listed under the brand name "Secure STM" at www.MedSave.com is available for up to 36 months. The insurer is one of the most reputable in the nation. Actually this is a 12 month policy that is automatically renewable for up to 36 months without the need to reapply. The price is less than half of the cost of regular long term health insurance and guarantees that she will remain covered until Medicare takes over. This policy is available in 23 states including AK, AL, AR, AZ, DC, DE, FL, GA, HI, IA, IL, MO, NE, NM, OH, OK, OR, PA, SC, TN, VA, WI & WY.

Other Resources:

Secure 12 x 3 STM

About MedSave

posted on: 1/24/2006 revised: 12/14/2009

Q: What happened to change MedSave?

A: MedSave was sold to Quinstreet in the summer of 2009 and is being transitioned by the new management. It is no longer an enrollment site for Freedom Benefits and is not supported by OnlineAdviser. Tony Novak continues as a writer for the Web site.

Accident rider coverage

posted on: 10/25/2005 revised:

Q: I am considering one of the short term health insurance plans at http://www.short-term-medical-insurance.com . If I do not select the accident supplement rider, are medical expenses related to an accident covered?

A: Yes, these expenses are covered subject to the policy deductible. If the accident supplement rider is selected then these expenses are covered on a “first dollar” basis and you do not have to pay the deductible.

Accuracy of medical history

posted on: 4/20/2006 revised:

Q: You mentioned in your advice to the guy from Florida that he should look into the 12x3STM coverage plan, but it doesn't cover pre-existing conditions for 5 years, which he has. Perhaps that isn't important to him? I don't understand how he can say that he takes glucophage for insulin resistance and yet doesn't have diabetes? Huh? Since when? I'm insulin resistant and control my diabetes by diet and exercise, so if you're taking glucophage, you have diabetes.

A: True, short term health insurance (STM) never covers the cost of pre-existing medical conditions. But that was not likely the primary concern or focus in this specific situation. In this case the person asking the question specifically wrote that she wanted to cover her medications out-of-pocket in order to avoid the cost of the state's HIPAA plan or a COBRA conversion. She was aware the limitations of coverage and this option does seem to be the best alternative.

There are many reasons why medical history presented in matters of insurance may not be accurate. Intentional or unintentional misstatement is always a possibility. This OnlineAdviser service is not qualified to comment on medical diagnosis or treatment. In this question we accept at face value that there are medical uses for the prescription drugs other than diabetes as presented. Your medical comments may well be accurate - we simply do not know. An insulin-dependant diabetic, of course, would not eligible for any short term medical insurance policy or any other of the lower cost options.

An important, but often unstated, consideration in medical insurance planning (and these OnlineAdviser responses) where significant pre-existing medical conditions exist is the applicant's access to the home state's HIPAA plan. In both FL and GA, for example, an applicant can always switch to an insurance policy that covers pre-existing medical conditions as long as they can afford to pay and provide a Certificate of Creditable Coverage. In many respects, this is the biggest benefit of STM; it provides the Certificate of Creditable Coverage and helps the applicant save money now in order to cover budgeted health care expenses over the long term. Also, separately, the five year limitation of benefits reference you mention refers to the look-back period before the policy starts to determine what is a pre-existing medical condition. (Note that the definition of pre-existing medical condition may vary from state to state but the language quoted is the standard generic provision of this insurance policy).

Other Resources:

Adopted baby needs fast coverage

posted on: 9/19/2006 revised: 12/14/2009

Q: I need coverage for a child that I am adopting in South America. How soon can I get proof of coverage and when will the coverage be effective?

A: If you enroll online at FreedomBenefits.net for the "Liaison International" policy the coverage will be effective and proof of insurance will be issued the same day. Coverage becomes affective immediately after midnight. You could sign up for a 30-60 day policy to allow time for regular U.S. coverage to start. Keep in mind that U.S. policies require you to enroll the baby within 30 days after adoption in order to guarantee eligibility.

Other Resources:

Liaison International Insurance

Affordable health insurance

posted on: 2/23/2007 revised: 11/11/2009

Q: I am frustrated that I cannot find affordable health insurance. What options are available?

A: You are not alone. An average person's health insurance costs are rising about five times faster than an average person's earnings, according to 2006 U.S. Census data. That means that health insurance becomes more and more unaffordable each year. This trend had been accelerating over the past decade with no signs of easing within sight. Everyone agrees that this trend indicates that the problem will continue to get worse. The only logical approach is to look at what insurance you can justify reducing in order to meet your budget. Freedom Benefits Web site lists many of these options. See the state listing section for the names of health insurance alternatives that you may have overlooked.

Other Resources:

Affordable health insurance for HSA

posted on: 9/26/2006 revised:

Q: I switched to a health savings account last year but now the premium increased to the point where I wonder if it is worthwhile.

A: Check the rates for Golden Rule Insurance that are available through MedSave.com. This is generally a less expensive option for HSA insurance and other health insurance in your state (and also in many other states). Also keep in mind that there are less expensive health plans that are not HSA-compatible.

Other Resources:

Affordable insurance for diabetic

posted on: 2/24/2006 revised: 9/5/2006

Q: I am searching for information to obtain reasonable health insurance coverage for my 19 year old daughter who is Type 1 Diabetic. Blue Cross / Blue Shield in North Carolina is about $1300 per month and not affordable for our family.

A: Diabetics who are not dependant on insulin are eligible for "Secure STM" health insurance at a small fraction of the price of Blue Cross coverage. This is a reputable high quality comprehensive nationwide coverage with exceptionally high marks for consumer satisfaction, but the policy does not cover pre-existing medical conditions and you must re-apply for a new policy every six months. See "A Review of Secure STM" or "Health Insurance for Diabetics" for more information.

In all states except the District of Columbia, insulin dependant diabetics without access to employer-provided group insurance can obtain health insurance through state assigned risk pools that are often not considered affordable. Limited benefit policies called "ValueMed" and "ValueHealth" at MedSave.com may be used as an affordable alternative to major medical insurance.

Affordable insurance in Massachusetts

posted on: 8/16/2006 revised: 12/15/2009

Q: I need cheap health insurance but I live in Massachusetts where insurance is expensive. I need something less than $100 per month. Do you have any suggestions?

A: As long as you realize that $100 per month does not pay for full comprehensive health care as required by state law, then there is at least one plan available usually at less than $50 per person per month. See the ValueMed plan at Freedombenefits.net that offers fixed dollar payments for doctors visits and hospital charges. Select Massachusetts from the map on the home page.

Other Resources:

ValueMed health insurance

Airmed duplicates existing coverage

posted on: 4/21/2007 revised:

Q: We will be doing a home exchange with a family from France. Our permanent medical insurance plans only cover our first month outside of the USA. We are looking for limited coverage when our permanent coverage is no longer in force. Limited because we will return to the USA for any major medical emergency. For that purpose we have medical evacuation coverage with Airmed. To further reduce the cost of coverage we will consider a large deductible: $5000 or perhaps even larger. Please note that if hospitalized our coverage with Airmed will return us promptly to the United States where we have full coverage in place.

A: All of the major brands or international travel medical insurance provide the features you request but it might help to point out a few additional details:

1. Since the international medical insurance plans already includes air ambulance and medical evacuation coverage, you do not need separate coverage from Airmed. The Airmed plan would seem to be a waste of money since you cannot receive payment from both sources.

2. International medical policies are priced and issued directly online. You can get prices of all of the options at Web sites like MedSave.com. All of the plans listed here are known to be top quality with high consumer satisfaction history. It takes only a few minutes to compare the choices and enroll for coverage. Insurance is issued on the same day.

3. After checking the prices, you might decide that a high deductible is not worthwhile. Since the premium rates for this type of supplemental coverage are already so low, the dollar amount of savings is insignificant compared to the potential risk of a higher deductible of thousands of dollars as you mentioned.

Alternatives to Time Insurance

posted on: 7/02/2006 revised: 12/15/2009

Q: I have had a policy with Time Insurance but the rates have gone up astronomically. We are all in good health, live in CT, and have had no claims on the policy. What do you recommend as an alternative?

A: Yes, your insurance company uses a "tiered rating system" that sets prices for older policies higher than new policies and then also puts restrictions on older policyholders to prevent them from reapplying at lower rates. This creates a source of tension.

The easiest alternative is Celtic Insurance. This is a high quality insurance with comparable policy types, including high deductible Health Savings Account plans and "Celtic Basic" plans in most states. Pricing and application are available directly online but you must be in good health and provide a copy of your medical records on request to the underwriter.

American Health Shield in WA and MN

posted on: 8/16/2006 revised: 12/15/2009

Q: I am covered under a health insurance policy from Chesapeake Life and it is about to expire. I cannot find it online for my state.

A: The popular low cost health insurance plan known by the brand name American Health Shield from Chesapeake Life Insurance is no longer offered by Chesapeake Life Insurance. The same product is available from other insurance companies, depending on your state of residence. See www.FreedomBenefits.net for listings of American Health Shield products in 44 other states.

American Health Shield for Children

posted on: 12/19/2005 revised:

Q: I am applying for American Health Shield insurance for our five children beginning February 1, 2006. The Web site says I must apply by mail instead of online.

A: You may now apply for this insurance online but a manual signature of an adult is required as a follow-up when the policyholder is a child. This is a legal issue since the policyholder (a child) cannot offer a legal electronic signature on any insurance contract.

American Health Shield details

posted on: 9/29/2006 revised:

Q: Could you please give me a brief detail of the American Health Shield policy for students and the pricing options for a 27 (soon to be 28) year old non-smoking healthy female?

A: Yes, please see the enrollment Web site for a detailed review of the coverage and all pricing. (Please note that "Simple STM" and "American Health Shield" are exactly the same product, but the American Health Shield brand name is the better known brand name among college students). Pricing is available on the "quote" link.

American Health Shield replacement

posted on: 11/16/2005 revised:

Q: I was covered by American Health Shield through Chesapeake Life for a long time and was very happy with it. I need to extend my coverage. Why do you now recommend "Simple STM" policy over American Health Shield?

A: Chesapeake Life no longer offers short term health insurance. American Health Shield is now written by Fairmont Specialty Group. The product "Simple STM" is the same insurance at the same prices but the computer system that supports online pricing and enrollment is better. So this recommendation of using "Simple STM" instead of "American Health Shield" is simply a case of getting more value for the same low price. One of the most important advantages of the Simple STM computer service is the ability to offer downloadable policies and ID cards online. Three of the most important advantages the current policy offers over the older American Health Shield policy are:

1. lower price in most areas of the U.S.

2. policy durations up to 12 months with unlimited re-applications in most states

3. access to PHCS national preferred provider network for discounts on out-of-pocket medical costs (there is no penalty if not using PHCS providers) The major disadvantage is that prescription drug coverage is not included under the base insurance policy, but is available under a separate optional rider. This change is in line with the overall national trend of separate prescription drug coverage from basic health insurance so it seems likely that all health insurance policies will change to cover prescription drugs by rider by the end of the decade.

Assurant Health policy delivery

posted on: 5/15/2006 revised: 12/15/2009

Q: I applied for Assurant Health policy through State Farm Insurance online but never received the policy.

A: The delivery method of this insurance is now automatically set to "online delivery" because this is the lowest cost option and no policy is actually mailed. The policy is available for download and printing at any time on the Company's Web site. You may elect to receive a paper copy of the policy in the mail by paying an additional $10 fee.

AUIC Benefits Association

posted on: 3/20/2006 revised:

Q: The summary of plan benefits of my policy contains a paragraph at the beginning that says "Please enroll me as a member of the Association of United Internet Consumers (AUIC)." It also says it costs $2 per month. I do not know what this is, and I do not want to enroll as a member.

A: Most U.S. health insurance policies purchased by individuals and businesses are organized as association plans and are only available to members of the association. Often the member does not join the association until they purchase the insurance. Some well-known examples are Blue Cross / Blue Shield Associations, AARP (American Association of Retired Persons) and USAA (insurance association for military veterans). In this case, the AUIC association is specifically formed to offer a good value in this brand of short term health insurance and other health insurance. The cost of the association membership is always built into the premium so most enrollees do not even know that the association exists.

This may seem like a silly practice on the surface, but there are some underlying legal and financial reasons for this pervasive practice. A benefits association allows more liberal pricing and filing treatment with state insurance departments who must review each new insurance product prior to its offering to the public. Association plans are administered differently (and apparently at a lower cost) than individual insurance policies, according to the insurance companies that offer such policies. Benefits associations also enjoy more favorable federal tax treatment because the Internal Revenue Code allows qualified non-insurance benefits to be provided tax-free to the association members. Of course, this tax advantage is only significant if members actually use the non-insurance benefits that are offered - most do not because the benefits offered in most associations are not exciting to most members.

So the choice is to spend the $2 per month association fee built into the premium in order to gain access to this lower priced insurance that is only available to association members or to choose one of the more established short term medical insurance plans that uses a different association. A complete state-by-state listing of alternatives can be found at Freedom Benefits.

Availability of Basic Health Insurance

posted on: 8/16/2006 revised: 12/15/2009

Q: Why is Basic Health Insurance not available in Minnesota?

A: Every insurance product must be individually approved by the insurance department in each state before it is available to the public. Your state government has not yet approved this specific health insurance policy. Insurance is a highly fragmented state-controlled industry with 50 separate sets of rules and procedures. Some people argue that health insurance is too important to be left up to individual states and that a national health insurance policy is needed. This seems unlikely in the near future. A listing of low cost health insurance policies on a state-by-state basis can be found at FreedomBenefits.net Just click Wisconsin on the map. In most states, ValueHealth and ValueMed are possible substitutes for Basic Health Insurance. Unfortunately, there are fewer lost cost health plans in Minnesota each year due to positions taken the state insurance department. Minnesota is not likely to allow this plan or any of the other low cost health insurance options that are most commonly used in other states. You may want to read the article "Availability of Basic Health Insurance" that covers this topic in more details.

Other Resources:

Minnesota affordable health insurance exchange

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