According to Weiss Research, “If you are relatively healthy and currently only incur routine medical expenses, you should purchase a catastrophic, or high-deductible health insurance policy that would kick in when your medic al bills exceeded a predetermined level.” Weiss Ratings’ Consumer Guide to Medicare Supplement Insurance, 2004
This product comes at an especially critical time for many Seniors and retirees who find themselves being squeezed by rising insurance premiums, higher prescription costs, and modest Cost Of Living Adjustments (or COLA’s). Over the past several years, there’s been a wide margin between Senior Social Security income and their expenses. In fact, health insurance rate increases have outpaced COLA increases by nearly three times. For Seniors wanting Medicare Part B covered services, $78.20 is deducted monthly from their Social Security checks in 2005 - a 17.5 percent increase and the largest in Medicare’s history.
But these are not the only costs that affect Seniors’ budgets. Out-of-pocket prescription drug spending grew from $644 in 2000, to $999 in 2003, and is projected to reach $1,454 in 2006. We’re concerned about these budget constraints. Seniors shouldn’t have to choose between paying for basic living expenses and needed medications, or paying health insurance premiums. That’s why we’re introducing the HDF policy.
Q: Why should Seniors purchase an HDF policy? A: Why pay for claims they may never have? When United American reviewed the 2003 policyholder claims under our Plan F Med-Supp policy, 84% of our policyholders ages 65 to 67 had claims under $1,730. The average claim was $412. Why use $1,730 as our yardstick? That is the federally determined calendar-year deductible for all HDF Medicare Supplement policies for 2005. At first glance, this may seem like a substantial deductible for you to handle, but consider the fact they may already be paying this amount, or more, for their current insurance premium.
For Seniors who are healthy and whose claims are small, an HDF policy is a superior way to achieve premium savings and cap their risk at $1,730. United American believes our High Deductible Plan F (HDF) offers solid protection against the gaps in Medicare and helps provide a great solution to Seniors’ budget concerns.
United American's Reserve Fund Annuity sets our HDF plan apart from other Med-Supply providers.
How does High Deductible, "Plan F" work? The HDF has a high deductible which must be met before policy benefits kick in, much like a major medical plan is structured, except this policy is designed for Medicare-eligible Seniors. Once you have paid the calendar-year deductible ($1,730 for 2005), HDF pays the exact same benefits as a regular plan F policy, but at a substantially lower premium. Benefits include:
• Inpatient Hospital Care - Part A coinsurance, 365 extra days of hospital care during the lifetime after Medicare coverage ends.
• Medical Costs -Part B coinsurance or co-payment amount.
• Blood Deductible - First three pints of blood each year.
• Skilled Nursing Coinsurance
• Part A Hospital Deductible
• Part B Deductible
• Part B Excess Expense (100%)
• Foreign Travel Emergency - 80% after $250 deductible.
How Much Can You Really Save in Premium? At age 65, your Plan F policy costs $237 monthly, and United American’s HDF policy averages only $102. That’s $135 a month difference or $1,620 over 12 months.
Current Monthly Plan F Policy Premium: $237
HDF Avg. Monthly Premium: -$102
Monthly Premium Savings: $135
$135 x 12 months = $1,620 annual premium savings!
Under their current plan, if they don’t use the $1,620 for claims, THEY LOSE IT. Under an HDF policy, if they don’t use the money, THEY KEEP IT and their risk is capped.
Savings can be substantial with HDF. Thirty-seven percent of our age 65 policyholders have annual claims under $200, with many averaging $83. Based on the above figures, they would have $1,537 saved in HDF premiums to use as they see fit. Purchasing an HDF can make great financial sense!
How Will Individuals Fund the Deductible? After determining that an HDF policy is appropriate coverage, the next most important step in owning an HDF policy and keeping it, is to explain the funding options for the calendar-year deductible. Many individuals 65 year old clients may be coming off a major medical plan through their former employer and will be comfortable in meeting a deductible before benefits are paid. However, there will be others for whom this idea is foreign. The first time their
HDF doesn’t pay claims, they’ll be calling you with questions.
Although there are a number of ways to meet the calendar year deductible, United American has developed a no hassle, pre-paid way to fund your clients’ out-of-pocket expenses using our Reserve Fund Annuity (RFA).
United American Leads the Way. Again!
You have purchased an New High Deductible "Plan F" (HDF), now how do you answer these questions? Where will I find the money to fund it? How do I make sure the money is available when a claim arises? What if I never have a claim? What happens to all that cash? When I do have a claim, how do I pay the provider?
There’s no need for you to worry, because United American has answered all those questions utilizing the Reserve Fund Annuity (RFA). This product was specifically developed to help customers accumulate funds needed to meet their health insurance calendar-year deductible and facilitate the payment of claims. As we said earlier, while there are many funding options available, no insurer offers this dynamic duo! UA’s Reserve Fund Annuity will be one of your biggest reasons to purchase a High Deductible "Plan F".
HDF policyholders place funds in an RFA in a lump sum or make monthly deposits along with your premium payments. When United American receives a healthcare claim and the calendar-year deductible has not yet been met, we use “Automatic” Claims Filing® (ACF), our claims filing system available through our optional, non-insurance product UA Partners®, to withdraw funds from the customer’s RFA and directly pay the provider. Once the deductible is met, UA pays all eligible benefits as outlined in the policy.
Knowing you won’t have additional worries about how their doctors and hospitals will be paid should you become ill provides you and your family with much-needed peace of mind. It’s a major bonus for you, and it’s a terrific reason to own this policy.
The Reserve Fund Annuity - • Allows policyholders to accumulate the deductible amount at a pace that is convenient and comfortable for them. • Allows policyholders to make deposits in one lump sum, or monthly along with their premium payments. • Is a no-load annuity so policyholders keep the full amount of the unused deductible they deposit. * • Is always accumulating interest, which is guaranteed never to be less than 2 percent. • Allows United American to pay providers directly until policy benefits kick in. • Allows funds to be withdrawn at any time by the customer without penalty. *(Subject to State Premium Annuity tax in CA, FL, ME, NV, SD, WV, WY)
Here’s how it works: Your Annuity ----> Doctor ----> Medicare Approved Claim ----> UA ----> Reserve Fund --------------------------------^
Hundreds of thousands of UA policyholders have come to rely upon United American, not only for the quality supplemental protection we provide, but for our services as well.
Once again, UA leads the way in products and service by maximizing our experience in the Senior market and our standard setting service. With UA, and our HDF you receive a service package unparalleled in the market today.
We are all too aware that rising prescription costs are a major financial drain for cost-conscious Seniors. But we can help you save on prescriptions costs with our UA Partners discount savings card program. Not only will you save up to 35% on mail order medications - you will receive discounts on other necessities like eyeglasses, dental, and hearing aids to name a few.
Don’t Forget - UA Partner Discounts Range From:
Prescriptions. Up to 35% with the Convenience of Mail Order
Chiropractic. Up to 40%
With U.A.Partners, Seniors can also take advantage of discounts on vitamins and nutritional supplements, a 24-hour Nurse HelpLine, and Travel Assist.
High Deductible Plan F, in conjunction with the Reserve Fund Annuity and UA Partners, present an unbeatable combination for Seniors in today’s turbulent healthcare marketplace. It saves them premium dollars; provides them with a secure savings tool; affords them the joys of paperless, hassle free claims filing; and makes outstanding discounts available to them for all types of healthcare products and services. This is a brief outline of some benefits, there are exclusions & Limitations, see policy or outline of coverage for complete details. United American or American Life & Health Group, Inc. are not part of Medicare or the Federal Government. By contacting us a licensed agent will contact you with full details
American Life & Health Group, Inc.
1013 Lucerne Ave. Suite 200