How does the health insurance bill affect my health insurance? Some advice.

How does the health insurance reform bill affect your health insurance? The situation still seems pretty fluid, but here’s what seems to be the case. In the short term, nothing will really happen. The majority of the bill’s provisions won’t hit until 2014, including the mandate to purchase coverage and the removal of pre-existing limitation exclusions on adults.

The upshot to all of that means you’ll still need health insurance to protect you from major medical events and claims that could arise over the next 3-4 years. Don’t let the hype surrounding this bill blind you to the need to maintain health insurance coverage for the near future.

The most tangible negative effect of this legislation is that health insurance premiums will almost certainly begin to skyrocket very soon because all of the taxes, surcharges, and burdens placed on the carriers will go into effect very soon.

When we put these two facts together we arrive at a few pieces of advice:

* Lock in your premium as long as possible. If you’re buying individual health insurance, it may be worth it to consider carriers that offer a 2 year rate guarantee (or even a 3 year rate guarantee where available). In the past we haven’t typically recommended doing so, but because premiums are sure to head north in a hurry, it is wise to consider paying a little extra to lock your initial premium for that second year.

* Take a higher deductible and supplement it. When renewals come with potentially crazy increases, you’ll want to bump up to higher deductibles. You’ll save a lot of money by taking a very high deductible health plan and supplementing the high deductible with a good accident supplement and critical illness plan.

* Max out your HSA. If you have a qualified high deductible plan, try to max out your health savings account to pay for health-related expenses in the future. That will help prepare you should you need to head to an even higher deductible in the next couple years.

Now more than ever you need a knowledgeable guide to help you navigate these murky waters. AC Forrest remains committed to serving you. Contact us today.