Shopping for car insurance is not easy. There are so many alternatives, how to pick the right one? We have gathered the most useful and up to date information for buying and choosing the right car insurance. We hope this site proves useful for you in your quest! Don't forget to bookmark us and come back often!
Portable health care insurance gets rolling
by Marc J. Lane
Employees covered by group plans are often forced to remain at jobs only because they have suffered reversals in health. Were they to leave, they fear that they and their families might lose insurance benefits and new employers might be unwilling to
Once the Clinton Administration's massive health reform program was unceremoniously laid to rest, Congress began to nibble away at the social ills which prompted the ambitious initiative in the first place.
Among these is the sad fact that health insurance hasn't been "portable."
Employees covered by group plans are often forced to remain at jobs only because they have suffered reversals in health. Were they to leave, they fear that they and their families might lose insurance benefits and new employers might be unwilling to cover them.
Since 1985, when the Consolidated Omnibus Budget Reconciliation Act (COBRA) brought some relief, most employer-sponsored group health plans have been obliged to offer employees and their dependents the option of purchasing continued health coverage in case of termination or reduction in hours of employment, death, divorce or legal separation, enrollment in Medicare or the end of a child's dependency under a parent's health plan.
COBRA's maximum coverage period is 18 months. And, other
Cars at up to 90%
off the book value!
than COBRA, no federal requirements apply to group health plans, insurers or health maintenance organizations (HMOs) fostering the portability of coverage.
But now all of that has changed. The Health Insurance Portability and Accountability Act of 1996 will impose portability requirements on group health plans in three ways.
It will prohibit excluding individuals from coverage based on health and related factors that have traditionally been taken into account. Thus, medical underwriting will be outlawed.
The new law will require that coverage offered by health insurers and HMOs generally be guaranteed renewable at the plan sponsor's option. Health insurers in the small-group market must also provide coverage to employees on a "guaranteed issue" basis.As a result, employers with two to 50 employees will be able to secure coverage without any underwriting at all.
The new will law place limits on exclusions of preexisting conditions. A preexisting condition is one for which medical advice, diagnosis, care or treatment was recommended or received within the past six months. When the laws take effect, health plans will be able to exclude coverage for such conditions for no more than 12 months (or 18 months for late enrollees). HMOs are permitted to substitute a two-month waiting
Get a free
brand new car!
period (three months for late enrollees) for a preexisting-condition limitation.
The new limits on preexisting-condition exclusions mean some administrative hassle. For one thing, the law mandates that health plans credit any prior group coverage toward preexisting-condition exclusion periods and a health plan will now need to provide a certificate of coverage to a former enrollee, documenting the length of coverage under the plan.
In addition, health plans must enroll individuals who initially decline health coverage because of other coverage if they seek to enroll within 30 days of losing their other coverage. And individuals who become dependents because of marriage, birth or adoption will also be entitled to special enrollment periods.
Not surprisingly, there is a price for all of this, and prudent employers will begin to assess the new law's impact on them and how best to control that impact before the portability rules take effect -- for plan years beginning after June 30.
They will need to consider whether the potential cost savings of applying a limited preexisting-condition exclusion outweigh the added administrative expense. They will need to assess whether market conditions still warrant providing extended health coverage until age 65 for early retirees, who may
have an easier time securing affordable individual coverage in light of new "guaranteed issue" requirements benefiting individuals.
In addition, employers will need to review contractual arrangements with service providers. And they will need to see that health plan documents and disclosures are revised to reflect any changes before they take effect.
About the Author
Marc Lane is a business and tax attorney, a Master Registered Financial Planner, a Registered Financial Consultant, and a Certified Investment Specialist. Marc is the author of 30 books on business organization, taxation, and personal finance. His newest book, "Advising Entrepreneurs: Dynamic Strategies for Financial Growth" draws from his experience working with those who have successfully built their businesses. Marc is an Adjunct Professor of Law at Northwestern University and an Adjunct Professor of Business at the University of Illinois. His practice areas include Individual Taxation, Corporate Tax Planning, Business Tax Planning, Estate Planning, Investments, Retirement Planning,Elder Law, International Trade, Business Law, and Wills, Trusts and Estates. Additional articles, case studies, and a free email newsletter are available at www.marcjlane.com.
Related Articles
Cheap Car Insurance -
Yes! It is possible to get cheap insurance. The best way to find low cost insurance is to get insurance quotes from several different companies and...
Very Cheap Car Insurance - It Exists But You Have To Know What To Ask For -
When someone tells you that they have very cheap car insurance
then you need to be cautious. What kind of insurance profile
does that individual...
Car Insurance Online Quotes - No Fuss -
There are many ways to shop for car insurance but getting car insurance online quotes has got to be one of the easiest ways to shop for it. A car...
Budget Car Insurance - How To Get Quotes And Insurance On A Budget -
When you are looking for budget car insurance you may find going in circles. While all drivers know car insurance is a necessary part of driving,...
The Basics Of Car Insurance -
Car insurance basically covers you, your passengers and your car in case of an accident. Many states require you to carry liability coverage in...
Need more information? Try a search:
Latest news on Car Insurance