Preferred Benefits Weblog

Archive for April, 2008

A Closer Look at Health Care, Part 3

Posted by Preferred Benefits on April 29, 2008

This week we will conclude our look at health care reform and the recent study by Michael Tanner of the Cato Institute. By studying the health care systems of other nations throughout the world, Tanner learned lessons that he says can be useful to the United States.

 

As you will recall, the last two weeks we looked at 1.) overall findings of the study and 2.) actual U.S. health care spending and the WHO’s ranking of the U.S. as 37th of 191 health care systems.

 

Tanner concludes his study by acknowledging that the U.S. health care system has its problems, including rising costs, too many people without health insurance, and uneven quality of care. He notes that each system in place in other countries has its challenges and also points out that none of these other systems would “translate directly to the United States.” Tanner explains that, “Americans are unlikely to accept the rationing or restrictions on care and technology that many countries use to control costs. Nor are U.S. physicians likely to accept a cut in income to the levels seen in countries like France or Germany.”

 

“The broad and growing trend in countries with national health care systems is to move away from centralized government control and introduce more market-oriented features,” according to Tanner. Therefore Tanner believes United States policymakers should take a close look at that trend in making decisions for the future of the health care system. In fact, he says if we can take one lesson from health care systems of other nations around the world, “it is not to follow the road to government-run national health care, but to increase consumer incentives and control. The United States can increase coverage and access to care, improve quality, and control costs without importing the problems of national health care.”

 

Here are a few more findings from the study we found of particular interest and wanted to share.

  • U.S. patients are actually more likely than Canadians to receive preventive care for chronic or serious health conditions.
  • Strong evidence suggests that the exposure of Swiss consumers to the cost consequences of their health care decisions has made them more conscious consumers.
  • More than two-thirds (69 percent) [of Italians] believe that giving patients more control over health care spending will improve the system’s quality. And 55 percent believe that it should be easier for patients to spend their own money on health care.
  • One out of every three Canadian physicians sends a patient to the United States for treatment each year, and those patients along with the Canadian government spend more than $1 billion annually on health care in this country.
  • Alan Jacobs of Harvard points out that despite significant differences in goals, content, and strategies, European nations are generally converging toward market practices in health care. Thus, even as Americans debate adopting a government-run system, countries with those systems are debating how to make their systems look more like that of the United States.”

 

Well, we’re sure the debate will continue, but we found Michael Tanner’s study to be most enlightening, and we hope you have benefited from taking a look at some of his findings. If you would like to review the entire study, it can be found at http://www.cato.org/pub_display.php?pub_id=9272.

 

 

At Preferred Benefits LLC we can help you do a realistic assessment of your current insurance portfolio. We can make suggestions that may save you money and in other cases even expand your coverage for the money you are currently spending. Such an assessment should be done annually.

 

Please contact us for a FREE assessment of your insurance portfolio. This personalized customer service is a cornerstone of our business. We look forward to being of service to you.

 

Valerie Reeves

Leticia Dominguez

 

PREFERRED BENEFITS LLC

TOLL-FREE 877-302-5810

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A Closer Look at Health Care, Part 2

Posted by Preferred Benefits on April 23, 2008

This week we’ll continue our look at Michael Tanner’s study regarding national health care systems around the world. Specifically we’ll look at actual healthcare costs in the U.S. and also at the World Health Organization’s ranking of the United States as 37th of 191 health care systems worldwide.

 

U.S Healthcare Spending

The United States spends more than other countries on health care. As Tanner points out in his study, though, “health care spending is not necessarily bad. To a large degree, America spends money on health care because it is a wealthy nation and chooses to do so.” Tanner cites economists who call health care a “normal good,” which means that spending relates to income and when income goes up, people spend more on that “good” of healthcare. He goes on to say that “because we are a wealthy nation, we can and do demand more health care.”

 

World Health Organization Ranking

Another interesting point of Tanner’s study relates to the World Health Report 2000 that ranked the U.S. health care system 37th among 191 systems worldwide. According to Tanner, the WHO conclusions are flawed due to the use of “highly subjective measures” such as “fairness” in relation to things that don’t necessarily relate to a country’s health care system.

 

In fact another Cato Institute researcher, Glen Whitman, produced a study entitled “WHO’s Fooling Who? The World Health Organization’s Problematic Ranking of Health Care Systems.” Whitman says, “The WHO rankings depend crucially on a number of underlying assumptions – some of them logically incoherent, some characterized by substantial uncertainty, and some rooted in ideological beliefs and values that not everyone shares.”

 

Tanner points out that though the U.S. received a poor overall ranking, the WHO report ranked the “United States number one in the world in responsiveness to patients’ needs in choice of provider, dignity, autonomy, timely care, and confidentiality.” In addition, he notes that other studies show that the U.S. tops the charts in cancer survival rates – with about 62.9 percent of men surviving at least five years after a cancer diagnoses, and 66.3 percent of women surviving cancer at the five-year mark. These numbers are significant when compared with other countries such as Italy, Spain and great Britain, whose survival rates go as low as 44.8 percent (men in Great Britain) and only top out at 59.7 percent (men in Italy).

 

Next week we’ll take one final look at Tanner’s study and the lessons he says we can learn from looking at the health care systems of other nations. Again, if you’d like to review the entire study, go to http://www.cato.org/pub_display.php?pub_id=9272.

 

At Preferred Benefits LLC we can help you do a realistic assessment of your current insurance portfolio. We can make suggestions that may save you money and in other cases even expand your coverage for the money you are currently spending. Such an assessment should be done annually.

 

Please contact us for a FREE assessment of your insurance portfolio. This personalized customer service is a cornerstone of our business. We look forward to being of service to you.

 

Valerie Reeves

Leticia Dominguez

 

PREFERRED BENEFITS LLC

TOLL-FREE 877-302-5810

Spread the word

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A Closer Look at Healthcare, Part 1

Posted by Preferred Benefits on April 15, 2008

It’s an election year, and we’re hearing a great deal about healthcare reform from Presidential candidates. In addition to the attention directed at this topic by political candidates, many will recall a recent movie by Michael Moore, entitled SiCKO, that praised the healthcare systems of other countries such as Canada and France.

 

Just last month the Cato Institute released a study about healthcare systems of other industrialized nations (all with some variation of a “universal” healthcare system). We found it to be quite interesting and wanted to share some of the information from that study.

 

Michael Tanner of the Cato Institute took a closer look at healthcare systems of countries around the world to determine if the United States should indeed adopt a government-run healthcare system as many suggest. Below is an excerpt from Tanner’s report entitled “The Grass is Not Always Greener: A Look at National Health Care Systems Around the World.”

 

“Overall trends from national health care systems around the world suggest the following:

  • Health insurance does not mean universal access to health care. In practice, many countries promise universal coverage but ration care or have long waiting lists for treatment.
  • Rising health care costs are not a uniquely American phenomenon. Although other countries spend considerably less than the United States on health care, both as percentage of GDP and per capita, costs are rising almost everywhere, leading to budget deficits, tax increases, and benefit reductions.
  • In countries weighted heavily toward government control, people are most likely to face waiting lists, rationing, restrictions on physician choice, and other obstacles to care.
  • Countries with more effective national health care systems are successful to the degree that they incorporate market mechanisms such as competition, cost sharing, market prices, and consumer choice, and eschew centralized government control.”

 

Tanner’s study is in-depth and examines the healthcare systems of France, Italy, Spain, Japan, Norway, Portugal, Greece, Netherlands, Great Britain, Switzerland, Germany and Canada. Because of the vast amount of information, we’ll discuss this topic for the next couple weeks, but if you would like to view the entire study, go to http://www.cato.org/pub_display.php?pub_id=9272.

 

At Preferred Benefits LLC we can help you do a realistic assessment of your current insurance portfolio. We can make suggestions that may save you money and in other cases even expand your coverage for the money you are currently spending. Such an assessment should be done annually.

 

Please contact us for a FREE assessment of your insurance portfolio. This personalized customer service is a cornerstone of our business. We look forward to being of service to you.

 

Valerie Reeves

Leticia Dominguez

 

PREFERRED BENEFITS LLC

TOLL-FREE 877-302-5810

Spread the word

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Tax Time Tips

Posted by Preferred Benefits on April 7, 2008

Like it or not, tax time is here. We thought we’d pass along some timely tips and information that might help you as you prepare to file taxes and make plans for 2008 tax strategies.

 

Did you know that you can contribute to your 2007 IRA up to April 15 of this year? Since most people will be getting a rebate from the IRS later this year, you might want to pre-invest the rebate and make a contribution to your 2007 IRA. Check with your tax advisor for more details or to learn IRA limits.

 

Going “Green” is all the rage, and when it comes to taxes, it can save you some green, too! As part of the Energy Policy Act of 2005 (EPACT), consumers can get tax credits for home improvements such as energy-efficient windows, doors, roofs, insulation, and heating and cooling equipment. Tax credits for these items are up to $500, and they are more valuable than getting a deduction because a credit is a dollar-for-dollar reduction in your tax bill.

 

You can get up to $2,000 back if you undertake major projects such as adding qualified solar panels or solar water heating equipment. Not only will these changes get you tax credits, but you’ll also save on your utility bills.

 

Hybrid vehicles are more appealing than ever with gas prices being so high. If you purchase a hybrid vehicle, you might be eligible for a significant tax credit. Visit the U.S. Department of Energy web site at www.fueleconomy.gov/feg/tax_hybrid.shtml to see if your car or SUV might qualify for a 2007 or 2008 tax credit.

 

Hopefully you can use some of this information we gained from Employee Benefit News to help you prepare your 2007 taxes or make plans for 2008.

 

And speaking of planning, did you know that Preferred Benefits can help you with retirement planning? You might say it’s our best-kept secret, but we don’t want to keep it a secret. We’ve helped many companies set up their 401K and other retirement plan options.

 

At Preferred Benefits LLC we can help you do a realistic assessment of your current insurance portfolio and retirement plan options. We can make suggestions that may save you money and in other cases even expand your coverage for the money you are currently spending. Such an assessment should be done annually.

 

Please contact us for a FREE assessment of your insurance portfolio. This personalized customer service is a cornerstone of our business. We look forward to being of service to you.

 

Valerie Reeves

Leticia Dominguez

 

PREFERRED BENEFITS LLC

TOLL-FREE 877-302-5810

Spread the word

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Life Insurance 101

Posted by Preferred Benefits on April 1, 2008

People often have many questions about life insurance, like who should get it, what kind is best, etc. The below information gives you a crash course in the basics of life insurance to help you better understand the options. 

Life insurance basically serves two purposes – it helps insure individuals and families from the risks of an untimely death and it helps insure people who may outlive their income and savings.   To assist in combating these risks, consumers have a number of life insurance options to promote peace of mind and financial security for themselves and their loved ones.   The two most common types of life insurance are term and permanent.  Term life insurance provides insurance for a specific period of time (term) and pays benefits owed under the policy to a designated beneficiary.   

What are the benefits of term life insurance? 

Cost

Most individuals who obtain coverage under a term life insurance policy do so because of its affordability.   Large amounts of term life insurance can be obtained at low premium prices, which is appealing to those on a fixed income or who only wish to purchase life insurance coverage for a specific duration.  

Coverage

Term life insurance is typically issued for a set period of time, such as 10, 20 or 30 years.  The longer the period of time, the higher the premium rate/cost, and the coverage expires at the end of the term.   Two good examples of when to obtain term life insurance are helping to pay for your children’s college education and helping to pay your mortgage in the event of your death.  Parents often obtain a policy that expires after their children graduate from college to help pay for their children’s education in the event of the insured’s death.  Secondly, the main breadwinner in a home could obtain coverage under a term life insurance policy that matches the length of his or her house’s mortgage.   

Conversion

Some term life insurance polices can be converted to a permanent life insurance policy which often offers the advantage of cash value accumulation features.  The ability to convert a term life insurance policy to a permanent life insurance policy can be a tremendous benefit to policyholders for a number of reasons.  Individuals who hold a term life insurance policy and have medical problems, or have problems obtaining coverage due to age limitations are offered opportunities to apply to convert their term life insurance coverage to a contract offering permanent life insurance coverage without the need to undergo medical underwriting.  Secondly, as financial needs change, conversion to a permanent life insurance policy can offer the policyholder a valuable savings tool should the need arise. 

The bottom line is that no one enjoys thinking about death, but we do want to be sure our loved ones are protected financially should that need arise.  At Preferred Benefits LLC we can help you do a realistic assessment of your current insurance portfolio, including life insurance. We can make suggestions that may save you money and in other cases even expand your coverage for the money you are currently spending. Such an assessment should be done annually.  

Please contact us for a FREE assessment of your insurance portfolio. This personalized customer service is a cornerstone of our business. We look forward to being of service to you. 

Valerie Reeves

Leticia Dominguez 

PREFERRED BENEFITS LLC

TOLL-FREE 877-302-5810

Spread the word

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