#2 in Our Series About Preparing for 2017

To Our Clients, Their Families, and Friends,

Several of our readers received this article earlier this year but in light of recent announcements about carrier withdrawals, rate increases, and shrinking provider networks for 2017 I am sending an updated version of this article.

If you are in good health, without pre-existing conditions, you may want to give your Obamacare coverage a second look. It’s possible that you are grossly overpaying for benefits that you may never use. Now there is an alternative to Obamacare that could reduce your costs by thousands of dollars in monthly premiums and in out-of-pocket costs for large claims. A short-term major medical plan may be a great alternative to Obamacare. These plans provide $1,000,000 to $2,000,000 in major medical benefits without the frills of Obamacare plans. There are some precautions of which to be aware because these plans are different from Obamacare: They do not guarantee acceptance. You will need to answer 4 or 5 questions in order to qualify (no exams or lab tests are required). They do not cover pre-existing conditions. They do not cover preventive care or maternity costs. They are available for 6 to 11 months at a time so you will need two policies to get through a calendar year. They do not satisfy the government’s requirement to own health insurance which means that you may be subject to a tax penalty also known as a shared responsibility payment. But….if the above precautions don’t present a problem you could find yourself thousands ahead, even after payment of the tax penalty (which is increasing again in 2017). Take a look at this 2016 example (2017 Obamacare plans have not been released): 40 Year Old, Male Non-smoker- Maricopa County, AZ – earning $36,000 per yearr   “But what if I make $60,000 per year?” There still isn’t much difference. Your fine for not having compliant coverage will increase by $480 but your annual savings versus a compliant plan will still be nearly $2,100 for the year and that is for a plan that provides $3,500 less in out-of-pocket costs for you in case of major claims. One other thing to consider is that if you choose short-term major medical insurance you have the option to return to an Obamacare plan at annual open enrollment. Acceptance is guaranteed and pre-existing conditions will be covered right away. Like I said, short-term major medical insurance is not an alternative for everyone but, for certain people, it can provide a significantly better option than high-priced coverage through the Health Insurance Marketplace. CAUTION: The federal government is aware that short-term major medical insurance is a very attractive alternative to Obamacare and certain regulators are attempting to limit these policies’ duration to 3 months in order to discourage participation and force individuals into Obamacare plans. We will keep you informed. To find out if short-term major medical insurance is for you contact us at (800) 955-0418 or info@h-ie.com. Thanks for reading. BONUS: Wondering where Trump and Clinton stand on healthcare? click here. Thanks for reading. Sincerely, Alan Leafman, President 847-559-9699 x 222 480-654-1200 x 222