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How You Can Save Thousands On Health Insurance & How EZ Can Help

If you feel like healthcare costs are out of control, you’re not alone. It seems like costs are constantly rising, making it hard for many to afford a health insurance plan or their medications. Because of this, many people end up going without health insurance and avoiding doctor visits, which can mean missed diagnoses and delays in treating major health conditions. But health insurance doesn’t have to be unaffordable or unattainable. EZ knows how to save you thousands on health insurance without sacrificing coverage, so you can remain insured and healthy, while saving money at the same time.

Opt For A Higher Deductible Plan

Your first option for saving money? Cut your monthly premium by switching to a high deductible health plan. One of these plans could work for you if you don’t go to the doctor often, or if you don’t need any ongoing treatments, because if this is the case, you probably won’t ever need to meet your deductible. High deductible plans can be risky, though: if something ends up happening to you, you’ll have to pay a lot out-of-pocket to meet your deductible.

Go With A Lower Drug Formulary Tier

pill bottle sitting on top of a dollar bill with pills on the bill too — *Save money on your prescription medication by opting for a different drug tier.*

Another way to lower your healthcare costs is by taking a look at your prescription drugs, and at your plan’s drug formulary. If your doctor is prescribing you a name-brand medication that has a high copay, check to see if there are any less expensive generic drugs available – you could end up saving 30-50%.

Check your plan’s drug formulary (the list of medications included in your plan, and their costs), as well, and see how your insurance company classifies your medications. Every plan’s formulary has four different pricing tiers, and each insurance company – and every plan! – has a different formulary, so comparing them all can get quite confusing. EZ’s agents are here to help, though – our agent will go over your medical needs, and compare plans and their drug formulary tiers to help you find a plan with affordable drug costs.

Enroll In A Wellness Incentive

If you are enrolled in your employer’s health insurance plan, find out if they offer any wellness programs or incentives. Some companies will offer a lower premium to employees who participate in wellness challenges or other incentivized programs. This could end up saving you a lot of money, or could even get you free coverage!

Use A Health Savings Account (HSA)

If you decide to opt for a high deductible health plan, or if you already have one, then start contributing to a health savings account (HSA). HSAs are only available to those with a qualified high deductible health plan, and they allow you to put money aside tax-free to pay for qualified healthcare expenses. You will accrue tax-free interest, and you will also be able to withdraw money from the account tax-free. Not only are these accounts triple tax-advantaged, but the funds in your account rollover automatically each year and continue to grow until you use them!

white question mark in a blue circle — *Before getting any lab work or tests done, make sure to ask it it is covered!*

Make Sure Tests Are Covered

Avoid surprise medical bills – before you agree to any tests ordered by your doctor, make sure that they are covered under your plan. Be aware that, even if your doctor prescribes a test, such as blood work to confirm a diagnosis or rule out health conditions, it may not be covered. If it isn’t, ask your doctor for other options.

Not knowing what’s covered in your plan can end up costing you thousands of dollars. If you find that you are often being sent for tests that are not covered, consider finding a different plan that offers more coverage. Our agent can compare plans for you and find a plan that offers the coverage you need to get any necessary tests done, so you can avoid surprise bills – and save money.

Negotiate

If you receive a high bill from your doctor’s office or hospital, don’t automatically assume that it is correct – as many as 8 out of 10 times, higher than expected medical bills have some type of error. If a bill seems off to you, then contact your provider and ask them to go over it with you and explain why it is so much. If your high bill is not due to a billing error and you are having trouble paying it, then negotiate with your provider – ask if they can lower the bill, or if they can offer you a monthly payment plan.

african american man with his daughter on his lap checking her temperature while sitting in front of a laptop with a doctor on the screen. — *Telehealth can save you hundreds of dollars by avoiding a doctor visit copay or emergency room visit.*

Utilize Telemedicine

Going to the ER should be your last resort. When you are not feeling well or need immediate care then you should consider more affordable options like urgent care or telemedicine. Telemedicine is a great option, because it allows you the convenience of speaking to your doctor over the phone and getting prescription medication sent over to your pharmacy. This eliminates having to pay a doctor visit copay, or a huge hospital bill. If your plan doesn’t offer telemedicine, EZ can help you find an affordable plan that does offer this option.

Health insurance is not cheap, but that doesn’t mean that you can’t find an affordable plan. EZ understands the need for affordable health insurance, especially in times of uncertainty. Don’t stick with the plan that you already have if it’s too pricey, or doesn’t offer the coverage you need. One of our agents can find you a more affordable plan with just as much coverage, or more. We can easily compare all available plans in your area within minutes, at no cost to you. Taking advantage of our free services is just another way you can save money with EZ. To get started, enter your zip code in the bar above, or to speak to an agent directly, call 888-350-1890.

High Deductible Health Plan? Make Sure Your Employees’ Is HSA-Qualified!

An increasing number of employers are jumping on the high deductible health plan bandwagon. In 2006, only around 6% of companies that offered healthcare plans offered High Deductible Health Plans, but in 2019 that number soared to 26%. There are definitely good reasons to consider offering one of these plans to your employees, but you do need to know that not all high deductible plans are the same. With some high deductible plans, you can offer your employees a Health Savings Account (HSA), which has tax advantages for them and for you. But first you need to make sure you’re choosing the right plan.

What Makes an HDHP HSA-Eligible?

person's hand holding a pen while checking off a checklist — *In order to offer an HSA, your high deductible health plan must meet certain criteria.*

It might seem like a small distinction, but not every high deductible plan is a High Deductible Health Plan (HDHP) with a capital “H.” The difference is that an HDHP not only has a high deductible, but it also meets certain criteria. If your plan meets this criteria then – and only then – can you offer an HSA alongside it. To be an HDHP, the plan must have:

A deductible that meets minimum requirements. A “high deductible” isn’t just a matter of opinion; each year, the IRS sets the minimum deductible amount for a plan to be considered HSA-eligible. For 2020, the deductible for an individual must be at least $1400, and for families, it must be at least $2800 for the plan to be an HSA-eligible HDHP.

A maximum out-of-pocket amount. Having a high deductible plan means having higher out-of-pocket expenses, but the good thing is that there is usually a limit to how much you have to fork out each year in deductibles and copays. To be an HSA-eligible HDHP, this out-of-pocket maximum must be below a certain amount. For 2020, that number is $6,900 for an individual and $13,800 for family.
No insurance coverage until the deductible is met. In order to take part in all of the advantages an HSA has to offer, you do have to give up some coverage. But don’t worry, there are some exclusions. Wellness and preventative care, which even includes things like help with weight loss and quitting smoking, as well as regular checkups and care resulting from accidents, can all be covered before the deductible is met in an HDHP with HSA.

These are the rules for offering an HSA alongside a high deductible plan, and there are also a few other rules surrounding contributing to an HSA to be aware of. In addition to being covered by an HDHP, you also cannot:

Have any other health coverage

Be enrolled in Medicare

Be claimed as a dependent on someone else’s tax return

Why Offer an HDHP with HSA?

Now that you know what makes a high deductible plan HSA-eligible, the next question is: why offer this type of plan to your employees? It all comes down to savings. Offering a healthcare plan to your employees is the right thing to do, and studies have shown that employees with healthcare are happier and more productive. But there’s no doubt that it’s expensive. Choosing a plan with a high deductible is one way to keep your costs down, because premiums on these plans are usually much lower.

Just look at this comparison: in 2019, the average employee contribution to a healthcare plan without a high deductible was around $6,200 for an individual and $14,700 for a family. For HSA-eligible HDHPs that number was around $5,200 and $14,000 respectively – a savings of $700 – $1,000.

Of course, HDHPs are not perfect. To some employees, especially lower income ones, the out-of-pocket expenses can feel like a burden. This is why it’s important to make sure the plan you choose is HSA-eligible. Having the HSA allows them to set aside money pre-tax to help pay for medical expenses that come up throughout the year; you can also help them out by contributing to their HSA (the maximum contribution allowed by both you and your employee combined is $3,550 for an individual and $7,100 for a family).

Offering an HSA alongside a HDHP (and contributing to it!) means that your employees will be more likely to enroll in your plan. It may also be the difference between them skipping out on preventative care or necessary treatments – possibly leading to poor health and more sick days in the future – and using their plan when they need it.

There’s a lot you need to know when you’re the boss. You’ve got to know your business, and also know what’s best for your employees – and sometimes that means reading up on things that aren’t your business – like health insurance. But don’t worry, you don’t have to go it alone! EZ can answer any questions you have, and can help you find the plan that works best for your employees and your business. There’s nothing we can’t answer, and we’ll never hassle you or charge you for our services. If it’s just quotes you’re after, stop by, give us a few seconds of your time, and be on your way. You’ve got enough to do! To get started with us, enter your zip code in the bar above. Or to speak with an agent directly, call 888-350-1890

4 Reasons Your Employees Aren’t Enrolling in Your Healthcare Plan (and What to Do About It)

Any way you look at it, offering health insurance to your employees is a good thing to do. Not only does a healthcare plan keep your employees healthy and protect them from huge medical bills, but studies have also shown that it is the most desired benefit you can offer. Employers who offer healthcare are more likely to attract high quality job candidates and also to retain the employees that they already have. So, if you’ve carefully researched and chosen a plan and offered it to your employees, but only a few have decided to enroll, what could be the problem? Here are 4 common reasons why employees choose not to enroll in an employer-based healthcare plan, and what you can do about it.

1. Your Plan Doesn’t Match Your Employees

The first reason employees choose not to enroll in your healthcare plan is that they don’t like it.

The first reason employees may choose not to enroll in your healthcare plan may seem obvious: they just don’t like it. Even if you’ve done hours of research and you think you’ve found the perfect PPO plan with a low deductible, you may not be taking into account your employees’ ages, family size, and financial situation. If most of your workforce is young, healthy, and childless, then they might prefer a high deductible health plan. But, if you have a very diverse workforce, then they might all have different needs. In that case you might want to look into an la carte healthcare plan, like a cafeteria plan.

Since asking your employees about their healthcare is a pretty sticky subject, you may be unsure how to solve this particular problem. The answer is actually very simple and will only take a little bit of time: give your employees a healthcare survey. Ask them all the relevant questions to gauge what they are looking for in a healthcare plan, and be sure to keep it anonymous to encourage participation. Their answers will give you a much better idea of what they want and where you should be looking for a plan.

2. The Network Isn’t the Right Fit

Most healthcare plans have a set network of providers that the insured can see without incurring out-of-network charges. So, even if your employees are happy with the PPO plan you chose for them, they might be unhappy with the providers included in the plan’s network. Some employees may find that their trusted doctors are not included in the offered plan – and that could be a deal breaker for them.

The solution to this problem can be the same as above: ask about your employees’ provider and network preferences in a survey. Be as specific as possible, asking about what doctors, hospitals, facilities, and prescription drugs they would like covered.

3. The Total Costs Are Too High

Even if you’re contributing 50% of your employees’ premium costs, that cost can still take a big chunk out of their paychecks.

Premiums, deductibles, copays, coinsurance…there are a lot of costs to add up when it comes to a healthcare plan. Even if you’re contributing 50% of your employees’ premium costs, that cost can still take a big chunk out of their paychecks. And premiums aren’t the only thing they need to budget for: around 80% of covered workers have a deductible they need to meet before their healthcare costs are covered. The average deductible for covered workers in small businesses is over $2,000, which is a very significant sum for a working family.

One way to help offset these costs and encourage your employees to enroll in your plan is to consider putting money into a tax-advantaged account like a flexible spending account (FSA) or health savings account (HSA). Both you and your employees can make pre-tax contributions to these accounts, and your employees can use the funds in them to pay for qualified healthcare expenses. An FSA can be used with any kind of healthcare plan, but the contributions are “use it or lose it.” In contrast, an HSA must be combined with a qualified high deductible health plan but the contributions can roll over each year.

4. Your Employees Don’t Understand Their Options

There are some that believe that effectively explaining and communicating the importance of benefits to your employees is just as important as offering the right plan. As a business owner, you already know that people don’t buy what they don’t understand. Employees need to understand the benefits you’re offering them and how important they are to themselves and their families in order to want to spend their money on them.

A recent survey by Colonial Life found that one-third of employees spent less than 30 minutes looking at their benefits options, and another third spent less than an hour. And this doesn’t just affect them: the same survey found that the employees who sped through their benefits choices were 55% more likely to leave their jobs, 32% more likely to feel dissatisfied with their jobs, and 18% less likely to feel cared for by their employer.

The solution to this problem is simple: communication. As the employer, you need to find an effective communication strategy that works for your employees. In addition to the printed or digital material you offer, consider holding individual and/or group meetings to talk about benefits. And don’t assume that just because some of your workers are younger, they want everything to be done online. Another Colonial Life survey found that Gen Z and Millennial workers are actually slightly more likely to want human interaction when learning about or enrolling in benefits: 91% for Gen Z and 83% for Millennials, as compared to 76% of employees overall.

At EZ.Insure, we know that you’re working hard to find the best options for your employees, but sometimes you just need someone to point you in the right direction. That’s what we’re here for. When you come to us, you’ll get your own personal agent who will give you instant, accurate quotes, answer all of your questions, and never, ever hound you with endless calls. And we do it all for free. You’ve got your employees’ best interests at heart, and we’ve got yours at heart, so get started with us today. Simply call 888-998-2027, or enter your zip code above.

4 EZ Tips For First Time Health Plan Shoppers

The world of health insurance can be intimidating. There are so many industry terms, as well as different types of plans with different coverage options and prices. Doing all of the necessary research to find the plan that fits your needs can feel overwhelming. You can opt for a short-term insurance plan that offers the basics and are fairly cheap, or a more comprehensible insurance plan. On top of trying to figure out which type of plan suits you, there are ways to save money on insurance that you could miss out on if you don’t know where to look. Here at EZ, we understand how intimidating it can all be, which is why we have some tips for making the process a little less unnerving.

1. Know The Terminology

The first thing you should do when jumping into the world of health insurance is familiarize yourself with the terminology. All of these terms can seem confusing, but they don’t have to be. Here’s a breakdown of some of the most important ones to know:

Premium– the fixed monthly rate that you pay the insurance company to cover you and your family. Premiums do not count towards meeting your deductible.
Deductible– a fixed amount you must pay before the insurance company either reimburses you or covers medical expenses. For example, if your deductible is $1,500, and you go to the doctor and get a procedure $3500 done, then you must pay $1500 first. Then, your company should take care of the last $2000, minus the amount of coinsurance you owe.
Coinsurance– Once your deductible is met, any insurance-covered procedure, treatment or service will result in a medical expense. The most common division of coinsurance is 80/20- health insurance companies pay 80%, you pay the remaining 20%. For example, in the above-mentioned scenario, you would have to pay 20% of it $2,000.
Copayment– a set amount you pay whenever you use a specific type of healthcare service. You can have a copay for primary doctor visits, specialist doctor visits, ER visits, as well as pharmaceutical copays on prescription drugs.

2. Know Your Budget

Before you start choosing specific insurance plans, weigh how much you are willing and able to pay for health insurance against your healthcare needs. Are you relatively healthy and just need the basics, or do you have a chronic condition and need more comprehensive coverage? These factors will play a big part in how much your monthly premiums will be versus how much your deductible will be.

If you are healthy, then a high-deductible health plan might be your best option. These plans offer low premiums and a high deductible- the thinking behind choosing a plan like this is that, since you are healthy, you will hopefully never have to pay your full deductible. It sounds like a bit of a gamble, but it can be worth it to save money on premiums.

If you need more coverage, then an ACA plan, or private plan that is offered by brokers or agents will work best because these plans offer more comprehensive coverage. There are different types of plans such as HMO plans with limited network coverage, and PPO plans that offer more in-network coverage (which costs more).

3. Know How To Save Money

After you’ve explored the different plan options available to you, don’t forget to look into the money saving options that come with some of these plans! You can save some extra money with:

- Subsidies– If you make between 100%-400% of the poverty line, then you are eligible for subsidies when purchasing plans on the ACA Marketplace. There are different kinds of subsidies:
  - Cost-sharing reductions- Cost-sharing reductions are discounts that lower your deductibles, copayments, and coinsurance. Your eligibility for these extra savings is determined by your household income.
  - Advance Premium Tax Credit– This is a tax credit that you can use to lower your monthly premiums. When applying for Marketplace health insurance, you estimate your expected income for the year. If you qualify, you will receive an advance tax credit that you can apply to the cost of your monthly premiums.
Health Savings Accounts (HSAs)- If you do go the route of getting a high deductible health plan (HDHP), then an HSA will help you save money. These accounts allow you to save up money to use for qualified medical expenses.You can contribute money to this account tax-free and allow it to roll over every year, but you can only have one of these plans alongside a qualified HDHP.

4. Get A Good Agent

If you are in the market for a health insurance plan, eliminate the hassle of doing all the research yourself and contact an agent. EZ.Insure offers highly trained agents in your area who can answer questions about all of these topics, and more. With us, you’ll speak with an actual human being, not an automated phone system. We will provide you with your own personal agent who will search and compare all available plans in your area, for free. Get the answers you are looking for quickly and at no cost. No pressure, no gimmicks. To get instant quotes, enter your zip code in the bar above. Or if you would like to get specific answers, speak to an agent by calling 888-350-1890.

Offer Your Employees More Choices with a Cafeteria Plan

What comes to mind when you hear the term “cafeteria plan”? Lunch! Well, these plans have nothing to do with what’s on the menu. “Cafeteria plan” is the informal name for Section 125 of the Internal Revenue Code, which allows employers to offer a la carte benefit options to employees. Employees can choose which of the offered benefits are right for them, and pay for them pre-tax.

What Are Cafeteria Plans?

a display of different foods in a buffet manner. — *Offer your employees more options of health insurance with a cafeteria plan.*

Just like walking through a cafeteria and choosing dishes, with a cafeteria plan, employees can decide which healthcare options they want. Examples include vision, dental, or HSAs/FSAs. It is important to note that cafeteria plans are not a type of health insurance. They are a way to let employees use pre-tax money to pay for the types of coverage they choose.

To qualify as a cafeteria plan, the plan must include:

At least one qualified pre-tax benefit – these can include things like HSAs and FSAs, which allow employees to put aside pre-tax money to pay for medical expenses throughout the year
At least one qualified taxable benefit – for example, an employer may allow employees who don’t want any of the offered benefits to choose a cash alternative as part of their salary. This is in contrast to traditional group plans, in which an employee isn’t compensated for opting out of coverage. This cash will, however, be taxed.

The Advantages of a Cafeteria Plan

Cafeteria plans are an attractive option for a diverse workforce that is used to having choices. For employees, not only do they get to choose only the benefits that are right for them, but they also get significant tax advantages. They can contribute pre-tax, thus saving money. Because they are taking pre-tax money out of their pay, their paychecks will be smaller, and they will end up paying less in taxes.

For employers, there are a few main advantages:

Employees with smaller paychecks mean paying less in payroll taxes.
Employers may be able to attract and keep staff with a personalized benefits plan.
Unused FSA funds remain with the employer.

The Disadvantages of Cafeteria Plan

For employees, there aren’t many big disadvantages to having a Section 125 cafeteria plan, but there are a few things for them to remember:

Employees are locked into the plan they choose for the entire year – with only a few exceptions,

One disadvantage of a cafeteria plan is that employees are locked in for a year.

employees must wait until the next enrollment season to make any changes

If employees choose a benefit like cash in place of coverage, they will incur a tax penalty.
Any funds put aside but not spent by the employee are forfeited – employees need to decide how much money to put aside at the beginning of the year, and they may not always get it right.

For employers, the main disadvantage of offering this type of plan to employees is the hassle. Because they are so individualized, they can take a lot of time and expense to manage.

Remember, whatever plan you’re considering offering to your employees, we can help sort through the mess. EZ.Insure is here to connect you to your own personal agent who can steer you in the right direction – for free! You will never be hounded by endless calls and you will always get the most accurate information. We promise everything will be quick, easy – and did we mention, free? To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected] or calling 888-998-2027.

Changes Are Coming For Medicare Under Trump’s Budget

Before President Trump was elected, one of his campaign promises to Americans was that he would not touch Medicare or Social Security. He has now proposed a budget plan for Medicare, which he claims will make it easier for seniors to opt out of Medicare. Under his plan, Americans would also be able to put more money into HSA accounts. Democratic lawmakers are worried that, if the proposal does go through, the Medicare changes and it’s funding levels will be drastically reduced.

Opting Out Of Medicare

older caucasian hands typing on a laptop keyboard with a silver bracelet on one wrist. — *Trump’s new Medicare budget would allow seniors to opt out of Medicare and add more money to their HSA account.*

Under the current system, as long as you are signed up for Social Security, you will be automatically signed up for Medicare Part A when you turn 65.

One of Trump’s proposals is to allow people to opt out of Medicare Part A (hospital insurance), without their decision interfering with their Social Security benefits.

HSA Changes

Health Savings Accounts (HSAs) are offered to people with high deductible health insurance plans. These accounts come with tax benefits. You can make tax-free contributions, as well as make tax-free qualified withdrawals from the account. Medicare beneficiaries cannot contribute to these accounts, even if they are just on Part A or have a high deductible plan.

However, Trump wants to give Medicare beneficiaries with high deductible health plans the ability to make tax-deductible contributions to HSAs or medical savings accounts (MSAs).

Other Medicare Changes

Further proposals by Trump would not structurally change the Medicare program, reduce the benefits, or limit eligibility for Medicare. Other changes in the proposal are similar to President Obama’s past budgets. They include:

Doctors would be paid the same price for services, regardless if they work for a hospital or private practice
Reduce payments in long-term care hospitals for patients discharged from a regular hospital.
Reduce prices for prescription drugs.
Republicans believe that allowing older adults to opt out of Medicare would help to fund the program.

Republicans believe that some reduction in the growth of the program and/or an increase in funding is necessary, and they believe that allowing older adults to opt out of Medicare would help to fund the program. The trust fund Medicare Part A hospital insurance is projected to be insolvent in 2026, meaning the trust fund would be empty and payroll taxes wouldn’t be enough to cover all of the necessary spending.

“A big boost in the economy could potentially extend the life of the trust fund a bit,” says Tricia Neuman, senior vice president and director of the Program on Medicare Policy at the nonpartisan Kaiser Family Foundation. “But even with a tailwind, policymakers will need to reduce Medicare spending, increase revenues or both to keep the trust fund solvent for an extended period of time. That said, there are a number of policies that could be considered to extend the life of the trust fund beyond those proposed in the Administration’s budget.”

Medicare beneficiaries could also benefit from some proposals. KFF’s Neuman says it is “conceivable” that provider payment changes to hospitals would reduce Medicare spending growth “which could potentially slow the growth in Medicare deductibles.”

Democrats argue that the Trump administration’s budget proposals would cut Medicare beneficiaries’ access to care. They also argue that the proposed HSA changes would only benefit higher income Medicare beneficiaries.

Tag: HSA