New Year Resolution -

Ways to avoid insurance woes

While we are all still gung ho on the resolutions we made to eat better, save more, and exercise, we thought it apt to add some insurance related items to your list. May we offer the following suggestions…

1) Pay your insurance premiums on time! This can not be emphasized enough. If you are in the habit of paying in the grace period, make it a goal to pay it a few days earlier each month until you have worked your way back to paying it on time. Grace periods are offered as a courtesy to protect you in case you are ill, away, running a few days behind schedule and the payment goes out a little later than it should have. Paying the premium on time will also prevent you from accidentally losing your coverage.

2) Read your explanation of benefits, especially if there isn’t a check included. Often the reason a check was not included will be clearly printed on the explanation of benefits. If the insurance company simply needs more information call them and provide it. If you do not understand what the message is saying, call the insurer and ask. Frequently one phone call will answer your question or solve the problem and allow the claim to be finalized properly. Your agent should be able to assist you with any problems as well.

3.) Double check with your insurance carrier to find out what hospitals in your area are participating hospitals. It will be much easier to check on this before you are en route to the emergency room. Hospitals and medical providers participation status with your insurance carrier can change throughout the year. If your family frequently travels to a weekend home, or visits relatives in a neighboring state, you should also check what hospital in that area are participating with your plan.

4.) Understand your plan. You should know the basics of your health insurance plan off the top of your head. Is it an HMO? PPO? Do your need referrals to see a specialist? What is your deductible and to which services does it apply? Can you see Doctors outside of the state you reside in? If you do not know the answers to these questions, you should read your benefits booklet. You can also call the insurance company and inquire how the plan works, or call the agent who sold it to you. You will find it works much better when you know what is required of you.

5) Research Long Term Care insurance if you are over age 50. Long Term Care insurance is an extremely important piece of your insurance / financial planning pie. Speak with your insurance about or financial planner about this very important coverage. Medicare covers less than 2% of nursing home stays. Do not be falsely mislead into believing that Medicare and a Medicare supplement will cover the expenses of Long Term Care.

6) Review your life insurance. If you have encountered any major life events this past year you may need to review your life insurance. If you have had a baby, purchased a house, or a second home, you may need to reevaluate your life insurance to protect your family in the event of your untimely demise. Furthermore, if you were married or divorced you may need to update beneficiaries as well as review coverage amounts.

Irene Card & Betsy Chandler are both licensed insurance professionals working at MIC Insurance Services, Inc. a health insurance services company. If you have questions relative to this column or other related topics, we invite you to call (973) 492-2828, browse our past columns on our web site at www.micinsurance.com.

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