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by Rob Tavis

How to Reduce Your Health Insurance Cost by 30 to 56% in 2015
Rob Tavis
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WHILE we here in the U.S. await a decision from the Supreme Court that will have an impact (one way or the other) on the future of healthcare reform and the ACA (aka Obamacare), I want to share a strategy for people who purchase individual/family health insurance that could help you cut your health insurance premiums by 30 to 56% starting immediately!

The individual/family health insurance market has seen premiums (before any tax credit subsidy) skyrocket since the implementation of Obamacare in 2014. This Forbes article (
http://goo.gl/d4pCgP) discusses some of the main reasons for these premium increases. As a result people that don’t qualify for a significant tax credit subsidy have seen their premiums rise dramatically in the last 18 months. Given multiple recent reports like this (http://goo.gl/QwdCAQ), rates are heading much higher.

This strategy involves replacing Obamacare compliant coverage with a short term policy for the rest of 2015. As noted in the above Forbes article, this strategy has become a very popular alternative to Obamacare. Making this change is not affected by the Supreme Court’s upcoming decision and can be done in every state. If there is no change in the person’s health, most states also allow people to re-apply for additional short term plans without limitation. So, people implementing this strategy now, could continue the savings in 2016 and beyond.

The following are four real life case studies of the savings that are possible with this strategy:

1. Single Female - Age 36. State of WA. Not eligible for subsidy because she earns too much. Estimated income - $50,000 = tax penalty of $1000 ($83/mo)

Current Obamacare plan - $3,000 deductible, 80% coverage, $3,300 out of pocket after deductible. Monthly premium -$301.07/mo

Short term plan option- $2,500 deductible, 80% coverage, $1,000 out of pocket after deductible. Monthly premium - $127.46/mo

Total Savings - 58% before tax penalty. After tax penalty – 30%

2. Married Female - Age 49, 2 kids. State of WA. Not eligible for subsidy because husband is covered elsewhere. Est income - $50k = 2015 tax penalty of $1000 ($83/mo).

Current Obamacare plan - $3,000 deductible, 80% coverage, $3,300 out of pocket after deductible. Monthly premium -$750/mo

Short term plan option - $2,500 deductible, 80% coverage, $1,000 out of pocket after deductible. Monthly premium - $281.04/mo

Total Savings - 63% before tax penalty. After tax penalty – 51%

3. Married Male - Age 45, 2 kids. State of WA. Not eligible for subsidy because his wife is covered through her employer. Estimated income - $50k = tax penalty of $1000 ($83/mo)

Current Obamacare plan - $3,000 deductible, 80% coverage, $3,300 out of pocket after deductible. Monthly premium -$680.93/mo

Short term plan option - $2,500 deductible, 80% coverage, $1,000 out of pocket after deductible. Monthly premium - $218.12/mo

Total Savings - 66% before tax penalty. After tax penalty – 56%

4. Married Couple - Ages 36 and 39, 2 kids. State of SC. Not eligible for subsidy because income is too high. Estimated income - $100k = tax penalty of $2000 ($167/mo)

Current Obamacare plan – $1500 deductible, 80% coverage, $4,900 out of pocket after deductible. Monthly premium $880/mo

Short term plan option - $1500 deductible, 80% coverage, $1,000 out of pocket after deductible. Monthly premium - $225.80/mo

Total Savings - 74% before tax penalty. After tax penalty – 55%

As you can see the savings can be significant. With that said, this strategy is not for everyone. People with pre-existing conditions that can’t answer “NO” to a handful of health questions are not eligible. Others may want the extra mandated coverage (like no cost preventive care and maternity coverage).

Most importantly, the information above tells us that EVERY person that buys individual/family health insurance NEEDS to develop a strategy that works best for them. To do that, make sure you work with a qualified, licensed, independent health insurance agent. These agents are compensated by the insurance companies, so there is NO cost to have a personal advocate working for you all year.

If you don’t have an independent agent that you trust, reach out to me, and I would be happy to offer my assistance.

Rob Tavis is owner/principal of U.S. Insurance Solutions. He lives in the Seattle, WA area, is a widowed father of 2 and an independent health insurance agent licensed in over 20 states with 25 years of experience in the health insurance industry.

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