Health Insurance

What Is Health Insurance?

Health insurance is a medical expense insurance that covers medical, surgical, prescription drug, and sometimes dental expenses. When expenses are incurred by the insured individual, health insurance can reimburse the individual for the expenses or pay for the medical care directly.

While medical insurance is a very necessary insurance that safeguards you from large medical bills should you become ill, diseased, or injured, it is also an incredibly important tool for business. High-quality benefit plans that include desirable health insurance benefits are often used to entice quality employees for job openings. If you are looking for high-quality, attractive health insurance benefits for your organization, be sure to get in touch with an experienced member of our team, here at Powell Insurance Group. Our team is here to help you with all of your health insurance, Medicare, and life insurance needs.

Individual Health Insurance

Individual health insurance is coverage that is purchased by an individual for themself or by an individual for themself and their family. An individual can obtain health insurance through their employer, or separately from their employer and can be purchased both on- and off-exchange.

People who are interested in individual health insurance can purchase coverage during an open enrollment period (OEP), although some states may offer deadline extensions for enrollment. Outside of the open enrollment process, you need to have a special enrollment period to elect coverage.

Individual health insurance coverages, when compared to group enrollment prior to 2014, traditionally cost the consumer less. The Affordable Care Act’s reforms require individual plans to offer essential health benefits and coverage guarantees.

If you have any questions about individual or group health insurance plans, we urge you to get in touch with a member of our team, here at Powell Insurance Group. We would be more than happy to discuss your enrollment options with you.

Medicare Coverage

Medicare is the federal health insurance program for people who are 65 years of age or older, as well as some younger people with qualifying disabilities and people who are suffering from end-stage renal disease. Medicare is broken down into three specific services: Medicare Part A (Hospital Insurance), Medicare Part B (Medical Insurance), and Medicare Part D (Prescription Drug Coverage).

Medicare 101

As a federal health insurance program, Medicare has survived for the past five decades — providing quality medical care to Americans with a few significant modifications over time. Today, this federal program supported countless individuals — including older Americans, people with disabilities, and those who have been diagnosed with end-term renal disease. Like any other coverages, there are typically costs associated with each individual service. Below, we have listed a few of the general rules that describe how medicare works:

Factors that affect Medicare costs:

• Whether or not you have Part A and Part B (most people have both)
• Whether your doctor or health care provider accepts assignment
• The type of healthcare needed and how often it is needed
• Whether or not you choose services or supplies not covered by Medicare
• Whether or not you have another health insurance paired with Medicare
• Whether or not you have Medicaid or help paying for Medicare
• If you have a Medicare Supplement Insurance (Medigap) policy
• If you or your healthcare provider have signed a private contract
• And more!

Medicare Supplement Insurance (Medigap)

Medigap is designed to pay some of the expenses not traditionally covered by Medicare (Parts A and B). Medicare supplement insurance is not designed to replace Medicare and is instead designed with the intent to pay for some of the expenses like copayments, coinsurance, deductibles, and more. Medigap is created and standardized by the same agency that controls and regulates Medicare, but it is designed to be sold and administered by private companies.

Medicare Advantage

Medicare Advantage plans, sometimes known as Part C, are where beneficiaries have the option to have their Medicare paid out through private health plans. Medicare Advantage is designed to cover Medicare Parts A and B, while also sometimes including Part D coverage. Dental benefits and vision coverage can also be included in Medicare Advantage plans.

Medicare Part D (Prescription Drug Plans)

Last, but certainly not least, is Medicare Part D — a supplemental Medicare plan to supplement Parts A and B. Part D coverage adds prescription drug coverage to Original Medicare and Medicare Advantage plans. These plans are often offered by private companies and are written to follow guidelines put in place by The Centers for Medicare and Medicaid Services.

Life Insurance

Life insurance is an incredibly important coverage that provides protection from financial loss resulting from death. When a person is enrolled in a life insurance policy, the insurance company promises to pay the individual’s beneficiary a certain amount of money when death occurs.

Life insurance is designed to:

• Replace income that a family might need for living expenses after the death of the family wage earner
• To pay off a mortgage loan or other debts
• To create education funds for children
• To cover final expenses like funeral costs
• To pad the savings account of family left behind

Life insurance is an incredibly important tool for securing your financial future. There are several different types of life insurance — so if you are considering enrolling in a policy, be sure to contact us at Powell Insurance Group so that we can discuss your needs.

Term Life

Term life insurance covers you for a set period of time. If the term is set to ten years, then the benefits will only be covered if a death occurs during that window of time.

Whole Life

Whole life insurance is a policy that is in place for your whole life. Whole life combines a death benefit and cash savings.

Universal Life

Like whole life insurance, universal life insurance offers insurance protection and cash value elements. The premium is placed in an investment fund managed by the insurance company and each month the cost of the term insurance policy is deducted.