Insured Thoughts

Automobile crashes often occur and our main hope is always that there are no injuries sustained. Frequently, however, there are problems and drivers and passengers have to be brought to the hospital to determine their condition. While you are trying to recuperate, lawyers are actively attempting to get your permission to represent you. Now you are trying to deal with your injuries, follow-up visits to doctors, filing a claim with your insurance company, and fending off attorneys who want your business. Your life has turned into a large mess and you possibly do not even have transportation during this time.

If you find yourself or a loved one in the above situation, consider these few suggestions:

Never leave the scene of an accident until the police arrive and you have filed a report. If a camera is available, take photos.

Contact your insurance company as soon as possible so they can assist you at this time.

Detail all information and be sure to get your claim number. This will be used in all future communications regarding the accident.

Consider hiring an attorney if your injuries warrant it, or if you really want someone to represent you with the other insurance companies. Remember, even if he does get you a larger settlement, it may not offset his fees.

If you contact the other driver’s insurance company, be very careful about your wording. They are very good at turning things around and making it seem like your fault.

Be sure to obtain the name and phone number of the claims adjuster who reviews the damage to your auto.

Do not forget to include in a damage list personal items that were inside the car. Obtain a list of approved repair shops from your insurer and get several estimates.

If you are being pressured to settle your medical bills at the same time as the auto damage, consider refusing. Unless you are absolutely certain that you have every bill for services and will never suffer again from your injuries, this is not a good thing to do at this time.

High deductible medical insurance plans are being offered much more frequently by employers as they generally save a substantial amount in premiums. It is the employee, however, who has to absorb all of the additional costs associated with this type of policy. Federal guidelines state that an individual policy must have a minimum deductible of $1,100, while a self and family policy would require a minimum deductible of $2,200.

It must be noted, however, that these amounts are minimum and often high deductible policies have set deductible amounts as large a $5,000 or $6,000. Of course, the higher the deductible, the lower the premium. Generally, the higher deductibles are offered to people at high risk.

To help offset additional costs for medical care under these policies, the policyholder is automatically eligible for a Health Savings Account (HSA). If set-up properly, this plan allows you to make tax-free deposits to be used at a future date for medical expenses. These funds can be accumulated over the years and, if not needed now, can help pay for medical expenses in retirement. Unfortunately, statistics show that 40% of the people eligible for an HSA do not have one at all which means they will have to face all of their medical costs with their salaries alone.

If you are considering obtaining a high deductible/ HSA combination plan, know that your maximum contribution currently is $2,900 for an individual and $5,800 for a family. If, however, you are over 55 you may be eligible for “catch-up” contributions. Check with your financial adviser for additional details about funding this account.

There are many types of elective surgery and patients often feel that they have a need for these services. Fertility treatments are sought by many of today’s young couples, cosmetic surgery is particularly appealing to the middle age group, and many, of all ages, believe that orthodontia will help improve their appearance. Lasik vision corrective surgery is performed on thousands daily. In today’s society, veterinary care is provided to almost all household pets at extremely high costs.

The problem, however, is that insurance plans do not cover anything they feel is unnecessary and will not pay the bills. The patient must be able to cover these costs. Economic pressures are difficult enough for everyday expenses, but trying to add these “luxury” items to your budget would be extremely difficult for the average person. Elective surgery is increasing rapidly, regardless of the economy, because the providers have joined together with several financing companies who are willing to supply the funds to the patient and accept payment over a specific period of time. This is a boon to the providers of these services, as they no longer have to hassle with patients for payments or write off bad debt.

Of course, as with every convenience, there are charges and fees to be considered. Providers are actively promoting this type of financing because it is so beneficial to them. Some are even offering substantial discounts in order to entice patients to purchase on credit.

A $2,000 procedure would cost $44 a month for five years, with an interest rate of 11.9%, which is the standard rate. This patient will have paid a total of $2,640 over time for this $2,000 procedure. The problem is that accounts in default can have their interest rates increase to as high as 28.99%, and then would have to pay an additional $35 late fee.

As always, people are seeking alternative payment means in difficult economic times. This new relationship between care providers and finance companies (Capital One and GE are among the leaders) is just another means of buy now, pay later. Consumers considering this type of financing should keep in mind the possibility of skyrocketing interest rates and late fees if a payment is missed.

With medical costs soaring in the United States, many people are traveling abroad for surgery. Most have found that the conditions in other areas are safe and comfortable and have been happy with the results. Companies have been forming in this country to help individuals locate doctors and hospitals abroad and assist in making arrangements for their surgeries.

One example of the savings offered is a gentleman from California who was uninsured. When he discovered he needed hip replacement surgery, he also found that it would cost him $30,000 for the operation. Since he was without health insurance and unable to possibly afford this amount, he began searching online for options. He discovered a local company who specializes in this area and had his hip replacement done in Bangalore, India. The surgery cost $8,880 plus the airfare of $1,300. This was a savings of over $20,000 and the patient is extremely pleased with the results of his surgery and the care and attention he received from the nurses and doctors in India.

Americans have been traveling to other countries for medical treatment for many years. Generally, however, they were seeking elective surgeries or cosmetic procedures. Today, however, that is no longer the case. More and more of our citizens are seeking complex medical procedures outside of our borders as a means of saving money. One person who required heart bypass surgery could not afford the $130,000 cost in the United States. He learned through research that he could have this done in India at a cost of $10,000. The same procedure would cost him $19,000 if he chose to have it performed in Turkey.

The savings available in other countries will most likely continue to send more and more of the uninsured and underinsured across our borders to be treated elsewhere at a manageable cost.

Safety – Maneuverability – Awareness – Responsibility – Thinking. This is what S.M.A.R.T. stands for and shows the goal of teaching young drivers how to react to situations and be aware of their responsibilities when driving. This course is in addition to Driver’s Education, not a replacement for it. This is additional instruction available to young drivers in the hope of teaching them how to prevent accidents and reduce the number of fatalities we are currently experiencing.

Motor vehicle accidents are the single greatest cause of death among teenagers, even more than military service. It shows us the importance of having our young people properly trained to take on the responsibility of driving an automobile. They are responsible for the lives of many people. We cannot stress sufficiently how serious this responsibility is and how important their training will be should an emergency arise.

A short time ago I read a Letter to the Editor from a 17-year old student who had recently completed the S.M.A.R.T. program. In this letter he is thanking his parents for providing this additional education. When originally suggested, he felt it was unnecessary and that his parents were being over-protective. Today, however, his total attitude has changed. He realizes the value of this course. He learned things that could possibly save his life and those of others. If one eight hour course could accomplish this, he had to be grateful to his parents for insisting that he enroll in this course. His letter also pleaded with other parents to consider enrolling their children in a S.M.A.R.T. course as they could help save lives in the future.