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Higher Minimum Wage Could Lead To A SMALLER Check

Americans have been striking and pushing for a higher minimum wage from $7.25 to $15 an hour. Higher minimum wage would have many unforeseen negative effects, especially on taxes and health insurance benefits. With a higher wage for their employees business owners would be less likely to offer benefit packages. The employee would also end up paying more in taxes, adding that to the fact that they would also have to pay for their own insurance and benefits, it might cost more than you think to get that raise.

Saving could become even harder with a higher minimum wage due to an increase in out of pocket expenses!

The problem with raising the minimum wage so much is the funnel of confusion that it creates for already established businesses. Raising the minimum wage means a business would also have to raise the hourly wages for the employees who have been with the company for several years. If they leave their wages the same someone who has been with the company for five years could end up making less than, or the same as someone who just started. This means the business would have to lower their profit margins and take a cut in order to account for paying everyone. For larger businesses this is no problem, but when you look at small business it could be detrimental. For a business that already has slim profit margins they could end up losing money just to pay their employees. This limits the number of employees a business will take on, puts more stress on employees because they can end up understaffed, and prevents any growth in the business. If they also have to take away benefit packages offered to employees because of their new wages this also decreases the likelihood of an employee staying. This in turn could push out unhappy employees creating a higher turnover rate, which costs businesses even more money to interview, hire, and train the right people.

Companies would not only have to limit how many people they hire, they would have to cut back on the healthcare they once offered. According to research, if the minimum wage was increased by $1, then 9-50 percent of the employees wages were offset by a decline in the employer’s health insurance coverage. Employer-provided health insurance would begin to diminish in order to save money. A 2014 study of 400 US Chief Financial Officers (CFOs) by Campbell Harvey, Ph.D., J. Paul Sticht Professor of International Business at Duke University, found that 40% of CFOs would reduce employee benefits if the minimum wage were raised to $10 an hour.

If employers are be less likely to offer health insurance coverage, employees are left to cover their own insurance and studies show employees are less likely to go and get their own coverage through the ACA, even if they were entitled to subsidies. Employees would rather go without coverage than seek insurance from the exchange.

Increasing wages also affects the amount of government assistance people recieve. If someone is working a minimum wage job and is offsetting their income with government programs, tax refunds, and assistance than this wage increase could actually end up costing them more. <You needed an introduction for this. You never mention these affects and just jump into an example about them. For example, a single mother making $7.25 an hour would receive more of her pay than those who made $10 an hour. Raising wages results in that mother losing about $70 in earned income tax credit refunds, and $528 in child care subsidies. She then ends up paying $37 more in payroll taxes and $45 more in state income taxes. This happens because the more an employee makes, the more they pay into benefits and increases their tax payments, and decreases their eligibility for government programs .

While raising the minimum wage sounds like the perfect solution to raising everyone’s quality of life it actually creates a whirlwind of new problems. People could lose their jobs, their health insurance, and their tax credits which would in turn cause them to take home even less than they had with the current minimum wage. On top of affecting the individual it will make it nearly impossible for small businesses to thrive next to larger corporations and will put many smaller companies out of business. Instead of simply raising the wages the economy has to find a better solution, one that allows people to not ‘make more’ but to take home more.

Five Ways To Get Better Health Plans At Lower Costs

Health insurance premiums and deductibles can become costly, and continuously go u p every year depending on the plan. There are ways to help ease the burden of a high premium/deductible plan that is cost-effective while receiving the medical services you need.

Compare Plans

More than 90% of people end up not looking into their plan for the following year and renew last year’s plan by default. Not researching this can cost you greatly into the following year because your monthly premiums can increase, and/or what is covered can be changed.

Shopping around is probably the most important way you can save money. Prices can vary from not only plan to plan but from provider to provider. This is why it is important to not only shop around for price, but for the quality of services, and coverage also.

Plans with low premiums will have higher out-of-pocket expenses like deductibles and copays. These plans are more sensible for people who did not come close to meeting their deductible. Then there are plans with a higher premium and lower deductible that would be more sensible if you meet your deductible quickly.

Comparing plans with one company makes it easier. Every agency will give you the same plans, so EZ.Insure shows you all of your options in one place!

Shopping around and comparing different insurers and plans can become time-consuming, unappealing, and strenuous. EZ.Insure does all the work for you with our highly trained agents that specialize in your region. Your advisor will do the work for you and even sign you up for a plan that matches your criteria for coverage and price, all at no cost to you.

Use What’s Free

Free preventative care services are offered at no charge as long as you are within your insurance network. There are a lot of no-cost routine services to keep you healthy and catch problems early on before it becomes serious. Colonoscopies, mammograms, vaccinations, depression screenings are all free in insurance plans. Many people are unaware of these free services and thus avoided preventative tests. Make sure to go to the doctor and use these free services to stay healthy and prevent serious health issues and expenses later.

Choose Your Doctor

Make sure you choose a doctor that works with your plan. Some offices cost more than others, and some only accept a certain percentage of benefits!

A primary doctor can help you save money, which is why it is wise to do some homework an choose the right one. When you use a primary doctor who charges less then you can also find cheaper prices for outpatient services, specialist, and lab services. Talking to your doctor can lead to reliable information when it comes to quality care at a reasonable price. Your doctor can offer ideas on how to save money and help you find/refer you to less expensive prescription drugs, or diagnostic tests.

Avoid Unnecessary Bills

When talking to your doctor, there are questions to be sure to ask about medical tests and treatments that are overused. Many of them might waste your money. Some people choose to go to the hospital for an MRI or lab work which ends up costing you. Try to utilize Lab Corp or Quest Diagnostic independent labs to avoid high costs. Hospitals will charge you double the cost of an independent provider.

Leverage Tax Breaks

Putting money into a health savings account (HSA) will help with high out-of-pocket medical costs. The account will let you put aside tax-free money to cover your medical costs. HSA allows you to put up to $3,400 for individuals and $6,750 for families within a year. You can use the money to pay for your deductible and other qualified medical expenses, and whatever you do not use will roll over into the following year tax-free.

NEW Medicare Diabetes Prevention Program Now Available

A Medicare Diabetes Prevention Program (MDPP) was announced by the CDC to begin in 2018. The model will be added as a covered benefit for Medicare enrollees who meet the criteria. The program started April 1, 2018.

New Medicare Programs For Diabetes Can Result In You Saving Big!

Diabetes affects more than 25% of seniors 65 and older in America, and Medicare has spent billions on beneficiaries with diabetes. But type 2 diabetes can usually be delayed or prevented with healthy lifestyle changes.

The model offers a classroom-style support group that has gone through many successful pilots which resulted in better management for diabetes patients. The services include core sessions during the first 6 months, core maintenance sessions during the second month, and ongoing maintenance sessions during the second year. Check-ins are to make sure the participants are sticking to a healthy lifestyle. CMS Deputy Administrator and Chief Medical Officer Dr. Patrick Conway believes that programs like these can prevent disease and help people live healthier lives.

The MDPP model aims to prevent type 2 diabetes from developing among Medicare beneficiaries. It will provide coaching services to prediabetic patients and help them lose weight. The goal is to reduce their weight by at least 5% from baseline and they must achieve this by the end of the first year to be eligible for ongoing maintenance in the second year.

People who went to more sessions had a much higher percentage of weight loss than those that skipped classes.

In the pilot tests conducted, patients who followed the program reduced their body weight by around 5% and lowered their spending by $2650 over the course of 15 months. The patients who attended more sessions had higher weight loss, which is the main goal of the program. “The final payment structure values beneficiary weight loss most significantly, as weight loss is a key indicator of success among individuals participating in a DPP due to the strong association between weight loss and reduction in the risk of type 2 diabetes,” CMS said.

“For the first time CMS, is going to be reimbursing for diabetes prevention based on this evidence-based program,” says Robert Gabbay, M.D., Ph.D., FACP, and Chief Medical Officer at Joslin Diabetes Center. “Currently the challenge is that when we identify people who are prediabetic, which is easy to do with a simple blood test, we don’t have a program to enroll them in that is reimbursed.”

Providers/physicians will receive Medicare reimbursement for providing the services to eligible patients. If their patients do not meet the required minimum weight loss, they will receive lower reimbursement rates and lose out on $160 per patient. But, if a patient successfully does the programs and meets the requirements, the provider could receive $610 per patient. If the patient comes to all the sessions but does not meet the 5% weight loss goal, the patient will help accrue $195 reimbursement for the provider.

Patients are eligible for the MDDP only once in their life because the CMS believes that the one-time benefit will be more likely to motivate them rather than allowing them to re-enroll any time. But, if a patient develops diabetes at any time during the program, then they can keep receiving services.

Diabetes is a national issue and is growing among children, adults, and senior citizens. This program that will be a preventative covered benefit will open up the idea of developing healthier lifestyles, and reduce the onset of diabetes. It is a hopeful step forward for Medicare beneficiaries.

If you need help searching for a Medicare Supplement plan, EZ.Insure can make sure you have an agent who knows the ins and outs of all the coverage options, local programs, and up to date rates in your area. Our agents are trained for your region and will work with your to find you the best plan for your needs at an affordable price. Don’t get stuck worrying about how to find coverage, let us make it easy for you. Simply enter your zip code in the bar above to get a quote, contact an agent by emailing us at [email protected], or call 855-220-1144.

Short-Term Health Insurance VS Major Medical Health Insurance

When it comes to determining if a short-term health insurance plan or a major medical health insurance is best for you, there are many factors you must consider. Two of the main things to consider are how long you want coverage and what you want to be covered. Short-term plans aid people when a catastrophic issue arises, such as a sudden injury or illness. With short-term health insurance, you can choose how long you need coverage, and what price you want to pay. Major medical health insurance provides more comprehensive care than short term insurance. Major medical plans include things such as preventative care and wellness checks. Unlike short term plans major medical plans lasts longer than a year and are usually more expensive.

Short-Term Health Insurance

The purpose of a short-term plan is to cover medical and travel expenses from 3 – 12 months. These health insurance plans are also called travel insurance plans because if you are traveling outside of the US, short-term plans will offer you basic coverage for a limited time.

Short-term plans are a more flexible option for people looking for coverage for no longer than a year. Short-term plans, unlike regular health insurance plans, are charged a daily rate which lets you buy a plan for the time you need, whether it be a month or more. The plan can go into affect anywhere from the day after applying to 14 days later. These insurance plans are generally nonrenewable, but you can reapply if needed with some restrictions.

Short-term plans are usually up to 50% cheaper than long-term plans. Savings vary by person, for example, a man who does not smoke can purchase the cheapest short-term plan for $110 a month, while the cheapest long-term plan will cost him about $270 a month. The savings are even more significant if you are under the age of 30 and plan on traveling out of the United States. People under the age of 30 can get short term health insurance plans for as low as $38 a month.

These plans are less expensive and much easier to obtain. The application does not require a medical exam and only asks a handful of yes or no health questions in order to get approved. Short term health insurance plans, unlike normal health insurance plans, also offer plans for older customers. You can apply for a plan up to the age of 89, while normal health insurance plans are not offered after age 75.

Pros & Cons of short term health insurance

Who Should Apply For Short Term Health Plans

According to the National Association of Insurance Commissioners, short-term policy utilization has increased from 108,000 people in 2013 to 148,000 people in 2015. Short-term plans have been gaining popularity among those who need coverage but cannot afford long-term health insurance. It is ideal for anyone who waited too long to purchase long-term and missed the open enrollment period, young adults who can no longer be on their parents’ health plans, people in between jobs, and those that are waiting for their employer or government benefits to begin. Some people buy short-term insurance to cover the deductible period before their long-term insurance starts paying. Others purchase these plans to fill in the gaps of Medicare coverage.

Major Medical Health Insurance

Major medical insurance is a long-term plan that offers more comprehensive coverage. These plans help manage day to day expenses and are convenient for those that require routine medical work , such as medication, lab work, and inpatient and outpatient services. Major medical health insurance complies with the ACA requirements which means it provides the ten essential health benefits. These ten essential benefits are: ambulatory patient services, prescription drugs, emergency care, mental health services, hospitalization, rehabilitative services, preventative and wellness services, laboratory services, pediatric care, and maternity and newborn care. However, most health insurance plans do not cover dental, vision and hearing, so you must purchase a separate plan for any of these forms of coverage.

Major medical policies offer peace of mind in knowing that you are covered in case of emergency or future conditions. These plans allow you to choose your own policy and deductible, but require you to answer health questions and conduct a medical exam to determine if you are qualified for benefits. Your policy rates depend on your age, gender, marital status, and the amount of coverage you desire. As of January 1, 2014, people who purchase major medical plans cannot be turned down or have rates raised due to pre-existing conditions.

Unlike short-term health insurance plans, major medical plans offer more extensive coverage and you will not be issued a tax penalty because it abides by ACA guidelines. These plans can be renewed annually unlike short-term plans which only last up to a year. You must enroll during open enrollment which is from November 1st to December 15 this year. If you miss open enrollment, then you will have to wait until the next enrollment period, unless you qualify for special enrollment. These special circumstances are when you adopt or have a child, get married, lose coverage from an employer, or move outside network area. If you attempt to purchase a plan outside of open enrollment, it will cost you a lot more.

Major Medical Health Insurance Pros & Cons

Who Should Apply For A Major Medical Health Plan

Major medical insurance is important to have for everyday health coverage, for both an individual or a family. It helps people whose employer or spouse’s employer does not offer health insurance. If you are pregnant or planning to become pregnant, this plan is your best option because it will cover your medical expenses and the newborn is generally put on the plan automatically. Short term health plans do not offer any type of coverage for pregnancy expenses. When you are over 26 years old and are no longer on your parent’s plan, then a major medical plan is best if you are looking for preventative care and wellness checks.

If you need help comparing different types of health insurance plans EZ.Insure will help you. We will connect you with a highly trained agent that will help you discover what health insurance plan is best for you. To get started, you can put your zip code in the link to the right, email us at [email protected], or give us a call at 855-400-0489.

$25 Billion Medicare Cuts Possible Due To Republican Tax Bill

The GOP tax bill that the Republicans have been working on, can lead to major cuts in Medicare funding and spending in 2018. The bill is estimated to cut $25 billion from Medicare starting 2018, and resulting in $400 billion over the next ten years.

The Congressional Office has estimated a $1.5 trillion deficit to over the next 10 years due to the tax bill.

In 2010, Washington passed a “pay as you go” rule which requires any new laws to be deficit neutral. Basically if there is not enough economic growth to balance the money lost, then the Office of Management and Budget has to cut spending. Unfortunately, it is likely that one of the spending cuts will be to Medicare.

The tax bill does not exactly say that it will cut spending on Medicare, it will be an unintended result. Some Republicans stated that the cuts would affect doctors, health providers, and hospitals, not Medicare beneficiaries. They have also had talks to try and change the Medicare eligibility age from 65 to 67.

House Speaker Paul Ryan seems to threaten cuts to Medicare saying “we’re going to have to get back next year at entitlement reform, which is how you tackle the debt and the deficit. I think the President is understanding choice and competition works everywhere, especially in Medicare.”

A major issue with the possible cuts is that Medicare beneficiaries could end up being kicked off of their current Medicare plan, or receive fewer benefits.

Juliette Cubanski, associate director of the Program on Medicare Policy at the Kaiser Family Foundation says, “these cuts could be one bad side effect of this tax legislation. Many providers may be able to absorb the payment reductions if they have a very diverse patient base. But others who rely primarily on Medicare may find this cut really difficult to deal with.”

While many are uneasy with the possible cuts, House Majority Leader Kevin McCarthy says that it is all a scare tactic by the Democrats, and that Medicare cuts will not occur. He states “the Republicans have been wanting to have this fixed for quite some time. When Obamacare went in, it cut Medicare. We have been trying to make our entitlement sustainable into the future.”

Roughly 54 million Americans currently receive Medicare benefits. Many fear the cuts will leave many Americans without coverage or unattainable expense to have coverage. However, McCarthy claims lawmakers will find a way to avoid the Medicare tax cuts.

Healthcare Rates to Rise in 2019

In 2017 when President Trump did away with cost-sharing subsidies, it forced insurers to raise premiums. The cost-sharing subsidies helped pay back insurers for giving customers lower premiums due to their income status. Due to the halt in the subsidies, health-insurance premiums have been rising for those who have to buy their own insurance, approximately 34% in 2018 for silver plans. Insurers are now brainstorming what they will charge and if they want to participate in the ACA exchanges for 2019.

Insurers have been participating less and less in the market exchange, leaving customers with fewer choices. If more insurance companies decide to pull out of the exchanges, it will mean that customers will have even fewer choices available to them, at higher costs.

Premiums will continue to keep growing without the cost-sharing subsidies to help with the costs impacted on insurers. The hike in premiums could be as much as 30% for 2019. It is projected that those that will be impacted the most are those who make too much money to qualify for premium support subsidies.

Eyles and Ceci Connolly, president and CEO of Alliance of Community Health Plans both voiced their disappointment of Congress failing to take action to fund cost-sharing subsidies.

“What’s happened is that several pieces of the puzzle have been pulled away. It is hard for me to isolate CSRs, what we are looking at now is a puzzle that is falling apart piece by piece,” Connolly said. “Losing the individual mandate, losing the cost sharing reduction subsidies and losing any hint of reinsurance, not to mention the risk corridors that were already gone, you’re just running out of options to manage the cost of this program.”

Midterm elections are approaching which brings up the issue of health care. While both political parties will be criticized, the polls have shown that voters hold Republicans more responsible for the high costs. Both parties have come to an agreement to include health insurance funding in the spending law, but could not agree on the details of what to fund exactly. Republicans are pushing for abortion restrictions stating insurers can cover abortions but cannot use federal funding for them, while Democrats do not agree.

Lawmakers are hoping the stabilization effort of adding funding to the bill to offset the costs of insurance, but health-policy experts disagree on how much it will help. Health experts state that the higher premiums will be offset for people by other subsidies they will be qualified for.

Republicans are not thrilled to stand behind the idea of the stabilization funding because they view it as saving the insurers of a health law, ACA, which they promised voters they would repeal. They blame the ACA’s regulations which stopped competition and drove up premium costs. Congress is leaning towards unlikely passing the stabilization bill.

Insurers are expected to announce the premium price hike sometime in the fall.

Tag: insurance

Higher Minimum Wage Could Lead To A SMALLER Check

Five Ways To Get Better Health Plans At Lower Costs

NEW Medicare Diabetes Prevention Program Now Available

Short-Term Health Insurance VS Major Medical Health Insurance

Short-Term Health Insurance

Major Medical Health Insurance

$25 Billion Medicare Cuts Possible Due To Republican Tax Bill

Healthcare Rates to Rise in 2019

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