Dealing with small business owners and the self-employed market, I have
come to the realization that it is extremely difficult for people to
distinguish between the type of health insurance coverage that they
"want" and the benefits they really "need." Recently, I have read
various comments on different Blogs advocating health plans that offer
100% coverage (no deductible and no-coinsurance) and, although I agree
that those types of plans have a great "curb appeal," I can tell you
from personal experience that these plans are not for everyone. Do 100%
health plans offer the policy holder greater peace of mind? Probably.
But is a 100% health insurance plan something that most consumers really
need? Probably not! In my professional opinion, when you purchase a
health insurance plan, you must achieve a balance between four important
variables; wants, needs, risk and price. Just like you would do if you
were purchasing options for a new car, you have to weigh all these
variables before you spend your money. If you are healthy, take no
medications and rarely go to the doctor, do you really need a 100% plan
with a $5 co-payment for prescription drugs if it costs you $300 dollars
more a month?
In my experience, I believe that individuals who purchase their health
plan based on wants rather than needs feel the most defrauded or
"ripped-off" by their insurance company and/or insurance agent. In fact,
I hear almost identical comments from almost every business owner that I
speak to. Comments, such as, "I have to run my business, I don't have
time to be sick! "I think I have gone to the doctor 2 times in the last 5
years" and "My insurance company keeps raising my rates and I don't
even use my insurance!" As a business owner myself, I can understand
their frustration. So, is there a simple formula that everyone can
follow to make health insurance buying easier? Yes! Become an INFORMED
consumer.
Every time I contact a prospective client or call one of my client
referrals, I ask a handful of specific questions that directly relate to
the policy that particular individual currently has in their filing
cabinet or dresser drawer. You know the policy that they bought to
protect them from having to file bankruptcy due to medical debt. That
policy they purchased to cover that $500,000 life-saving organ
transplant or those 40 chemotherapy treatments that they may have to
undergo if they are diagnosed with cancer.
So what do you think happens almost 100% of the time when I ask these
individuals "BASIC" questions about their health insurance policy? They
do not know the answers! The following is a list of 10 questions that I
frequently ask a prospective health insurance client. Let's see how many
YOU can answer without looking at your policy.