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Life & Health Insurance/Alternative to traditional heath inusrance

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Question
Hi Gene,
First of all, thank you for offering your insight. I, along with who knows how many others, am distressed at the current situation with health insurance.  My wife and I are just over the income threshold so there is no subsidy for us under the ACA.  The plans available to us now carry much higher deductibles for more than we are now paying for a plan that will no longer be available soon. I know many in our situation are contemplating forgoing coverage and paying the "tax", (actually the fine)that will result. We are reluctant to do this although at 60 years of age, we are both in good health. I am thinking there must be some sort of alternative to traditional insurance that would offer at least some measure of protection. We could afford to self insure up to around $30k, but many unforeseen medical events could go way beyond that.  If we had the good fortune of making it to 65, we could save around $75k to 100k over the next five years by not paying the premiums. The risk/reward is intriguing.  Can you think of anything we could consider that would require us to self insure to some level, but would still offer protection in the event of a serious medical event?   Thank you in advance for any help you may be able to offer.  John

Answer
John,

I appreciate your outreach and completely agree that you are in the boat of distress with many others.

I will stick with as much of the positive as I can.

Option 1 - Go to the exchange. At the wise age of 60, your options may be priced out of the way because of the age factor but a bronze level or catastrophic option may be a direction to go if Wisconsin offers it.

Option 2 - Go independently. There are carriers that may not be offered in your exchange that will be priced based on you and give you multiple out of pocket options along with HSA and other possibilities. I know come carriers are doing quite a bit of this from now to the end of the year and that way you can lock in a rate and plan through 2015. At that point you may need to change plans again but it gets you over the hump. Your state will determine where to look.

Option 3 - No coverage and roll the dice. This is the gambler's option. You have some set aside but life shows us its hand at the craziest of times. Financially it's an option, but not necessarily the smartest of options...especially as we age. It's never an "advisable" option but you mentioned it and I wanted to be sure to mention it.

I hope this helps. If you have further questions, let me know.

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Gene Ramsay

Expertise

I can answer questions from people regarding health, life, and voluntary insurance. I can also answer certain annuity questions, long-term care, medicare, vision, dental, group products, individual products, and certain carriers. Another area would be general discussion on an individual basis to determine need and help individuals make the right decisions for them. I can also field questions from other insurance providers about carriers I represent so we can do some business together and I am also willing to offer my thoughts on certain issues they may be having with clients/customers, etc.

Experience

My experience comes from helping many people every day handle tough situations in the health, life, and voluntary insurance markets. I do not claim to know it all, but I will always be direct and professional.

Organizations
National Association of Health Underwriters, Alabama Association of Health Underwriters, Birmingham Association of Health Underwriters

Publications
Self Funding Magazine, ezines.com, Birmingham Business Journal, North Jefferson News

Education/Credentials
My educational credentials are holding a health and life insurance license in multiple states.

Awards and Honors
Colonial Life Rookie Sales Award of the Year (2006), Treasurer - Birmingham Association of Health Underwriters (2010), NAHU Region 5 & 6 Leadership Conference Participant (2011), "Benefits Selling" Magazine Reader Council Advisory Board (2011), President Elect - Birmingham Association of Health Underwriters (2011), President (2012-2014), VP of Technology - Alabama Association of Health Underwriters, (2011-Present), NAHU LPRT Soaring Eagle Award Recipient (2013)

Past/Present Clients
I would prefer not to divulge clients without their consent to do so.

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