Are your health insurance premiums too high?

Consider the following:

An intelligent, factual, method for lowering your monthly major medical premiums

In 2009, the average family’s health insurance premium was $13.375 (Kaiser Family Foundation)

The average American family spends less than $2,500 per year in out-of-pocket medical expenses

The average American household with $2,000 major medical deductible rarely meets their deductible

This results in health insurance premiums that are far too expensive for the amount of benefits that are actually used

Accidents

1. Include an accident plan to compliment your health insurance plan.

If a medical claim is due to an accident—

Use the “accident plan” to cover your annual deductibles & co-insurance

…with on a $100 deductible

65% of all healthcare claims are due to accidents

Critical Illness Protection

2. Include critical illness coverage in your health insurance program

Reality: *Every 26 seconds…Someone in the U.S. will suffer from a coronary event, and

about every minute, someone will die from one -1 *Every 24 seconds…Someone in the U.S. is diagnosed with cancer -2 *Every 40 seconds…Someone in the U.S. is having a stroke -1 Cancer deaths are declining --about 1% each year since 1999-- due to

increased prevention efforts, earlier detection, and improved therapies -3

Possible uses: Pay the deductible and co-insurance on your health insurance Your mortgage, auto loan or credit card payments Keep your business running Expenses for your and your family’s travel/lodging while you’re seeking medical

treatment outside of your community Expenses for child and nursing care Freedom to choose your health providers Freedom to have your spouse by your side Freedom from worry about your bills and your mortgage Freedom to take extra time off from work while you get back on your feet

1. Heart Disease and Stroke Statistics – 2008 Update, American Heart Association2. Cancer Facts and Figures, American Cancer Society, 20063. New York Presbyterian Hospital http://www.nypcancerprevention.com/issue/5/con/features/cancer-surpasses-heart-di.shtml

68% of each dollar spent on healthcare goes to treatment

of a critical illness

Total Medical Insurance ProgramMAJOR MEDICAL - ACCIDENT - CRITICAL ILLNESS

MALE 40 / FEMALE 37 / 2 CHILDREN - $10K ACCIDENT & CRITICAL ILLNESS BENEFIT

EXAMPLE # 1MAJOR MEDICAL PLAN ONLY

$25 CO-PAY

EXAMPLE # 2MAJOR MEDICAL PLAN

Accident/Critical Illness Combo$25 CO-PAY

EXAMPLE # 3MAJOR MEDICAL PLAN

With Accident/ Critical Illness Combo High Deductible(No Office Visit Co-Pay)

Deductible: $1,000Office Visit (Co-pay): $25.00

Total Premium: $965.00

Deductible: $5,000Office Visit (Co-pay): $25.00Medical Premium: $580.00Accident plan: $59.95Critical Illness: $48.00Total Premium: $687.95

Deductible: $5,000Office Visit: $0Medical Premium: $398.00Accident Plan: $59.95Critical Illness: $48.00Total Premium: $505.95

Total Savings for Example # 2: $277.05/mo. = $3,324.60/ yr.Total Savings for Example # 3: $495.05/mo. = $5,940.60/yr.

Including an Accident and Critical Illness policy with a higher deductible major medical policy creates a combined benefit plan that will greatly reduce your monthly medical insurance

premium.

In the event of an accident or critical illness, both the Accident and Critical Illness policy’s benefits can be used to pay the higher deductible on your Major Medical plan. The Critical Illness plan may also provide funds to cover any additional out-of-pocket expenses or lost

income that may result from a serious illness.

“The True Cost of a Co-Pay”Major Medical Insurance

(MALE 40 / FEMALE 37 / 2 CHILDREN - $10K ACCIDENT & CRITICAL ILLNESS BENEFIT)

MAJOR MEDICAL PLAN$25 CO-PAY

MAJOR MEDICAL PLAN(No Office Visit C-Pay)

Deductible :$5,000Office Visit Co-pay: $25.00

Monthly Premium: $580.00Annually: $6,960

Deductible : $5,000Office Visit Co-Pay : $0.00

Monthly Premium: $398.00Annually: $4,776

$6,960 - $4,776 = $2,184.001. Savings by purchasing $0 co-pay plan: $182.00 /mo. = $2,184.00 /yr.

2. Average “retail price” for doctor’s office visit: $120.003. Average PPO discounted price for doctor’s office visit without co-pay:

$80.004. Number of family office visits required to justify the additional

premium:$2,184 ÷ $80.00 = 27.3 Office Visits

5. Number of office visits actually used per year: (Example) – 10$25.00 x’s 10 visits = $250.00

6. “True Cost” of the co-pay feature: $2,184 + $250.00 = $2,344.00 /yr.7. Actual “true out of pocket cost” for each office visit = $234.40 ea.

provides,yet maintain low out-of-pocket exposure by including an Accident and Critical

Illness policy toyour “total health insurance program”.

Total Major Medical PlanMedical with co-pays $ __________

HSA or no co-pays $ __________Annual Deductible …… $5,000

Personal Accident Plan$ 10,000 per accident

($100 Deductible)Premium: $ ________

Critical Illness PolicyAvailable Funds:

$ 10,000 Lump Sum (ea.)Premium: $ ________

Total Medical Ins. ProgramTotal Monthly Premium:

$ __________