Everyone who earns a living needs disability insurance. Single people may need it more than married couples because they don’t have a spouse’s income to rely on if they are sick or injured and cannot work. Most dual wage earner married couples cannot imagine what it would be like to live on one income.
Your most valuable asset is your ability to earn an income because it allows you to acquire other assets (home, auto, business) that you insure without hesitation. But many people fail to insure their most valuable asset, or they underinsure their income. Unfortunately, disabilities occur more often than you might think. In reality, you are more likely to face a disabling accident or sickness during your working years than you are to die before retirement.
It is impossible forecast a disability and its impact on your financial situation but a good insurance agent can help you create a plan that protects you and your family if you are unable to work due to an injury or illness. Asking yourself the following questions may help you take inventory and make an informed decision as to how much income protection you need.
- How much of your income goes to paying daily living expenses?
- How much goes to savings and/or investments?
- If you are unable work, how much income can you guarantee from other sources and for how long?
- Will you be able to maintain your current lifestyle if your paycheck stops?
- What things would you and your family have to give up?
Business-Related Disability Insurance Programs
There are two great programs available to help business owners pay their ongoing expenses when they are disabled.
- Business overhead expense (BOE) insurance reimburses you for the usual expenses of your business: rent, utilities, employee salaries, legal and accounting fees, laundry, association dues, etc. Some BOE policies do not pay the principal on debt. Therefore you may want to consider:
- Business reducing-term disability, which covers your business loans. The length or term of the policy decreases as your loan is paid off and the remaining length of the loan decreases. This type of coverage is generally very affordable.
If you still don't think you need disability insurance, you may change you mind when you
read this case study of a dentist whose well-thought-out disability strategy saved his practice and his family's well-being.
Because MDA Insurance provides all the insurance programs a dentist needs, we have robust disability insurance plans from which to choose. Call us at 800-860-2272 for assitance, or get a quote right now by clicking here.
The cost of a dental malpractice insurance policy is directly related to the dentist's history of malpractice (professional liability) claims. A dentist who has had several small or one large professional liability claim can expect to pay more for liability insurance than a peer who has a "clean" claim history.
So, how can you reduce the cost of dental malpractice insurance? Quite simply, learn to manage the risks associated with practicing dentistry. There are several ways to do that. Among the best strategies is to ally yourself with a malpractice insurance provider that has a robust risk management training program. The Michigan Dental Association endorses the Professional Protector Plan (PPP), underwritten by CNA Insurance. In Michigan, the PPP is available only through MDA Insurance.
CNA takes risk management seriously. In addition to classroom seminars on dental risk management offered semi-annually in Michigan, CNA enables dentists and their staff members to complete online risk management training on their own timetable. The training is segmented into five modules, each followed by a test.
Here's what you'll learn:
Module 1: A Look at Claims, Risk Managmeent Overview, Legal Concepts
Module 2: Pre-Treatment Issues, Clinical Treatment
Module 3: Record Keeping and Documentation
Module 4: Effective Patient Communication, Patient Management
Module 5: Managing Adverse Events, Reporting and Handling Claims
Your reward for completing the five lessons? Those who pass with a score of 75 percent or better on each module will receive a 7.5 percent discount on their PPP professional liability insurance premium for three years--but only if insured by the PPP. Regardless of who insures you, you'll have a greater awareness of protential trouble spots in your practice, and how to guard against dental professional liability insurance claims in the future.
The CNA risk management course requires an investment of $120 per person--only $60 per person if you're a PPP insured. If you are insured by PPP, contact us to get the discount code before enrolling in the online course.
Dental professional liability insurance is crucial to the stability of your practice, but you don't have to overpay for this vital protection. If you are not insured by the PPP, find out whether your carrier offers risk management training. If not, you may want to consider moving to a carrier that is dedicated to keeping claims to a minimum, which can mean keeping your costs to a minimum, too.
Apart from managing your practice's risks well, you may also realize some dental liability insurance savings by investigating a different form of coverage. If you have occurrence coverage, you may find that claims-made coverage is a better deal--or vice versa, depending on where you are at in your career and, of course, your claims history.
If you need help to explore ways to reduce your dental liability insurance costs, ask MDA Insurance for help. We've worked with hundreds of Michigan dentists to get them the best coverage at the best price. Let us know how we can help, or fill out this form to get a quote.
Tornados and severe storms have wrecked havoc in Texas, Indiana, Tennessee and other states already in 2012. MDA Insurance has fielded a few calls from people wondering whether their homeowner's insurance adequately protects them against the risk of severe weather.
Here are the top five things you need to check out:
- Replacement value of your home. This is how much your insurance policy will pay to replace your home if it is lost in a tornado, fire or similar disaster. Although your home may be worth far less than you paid for it, the cost to rebuild your home may be higher than replacement value that appears on your Declarations page. Why? The cost of building materials and labor continues to rise. Most insurance companies increase the replacement value of your home by a small percentage annually. You may want to increase the replacement value limit to be sure your home can be rebuilt at the same size, using similar materials. This will have an effect on your premium, but the higher replacement value will be worth it if you need to rebuild.
- Flood insurance. Your homeowner’s insurance policy does not cover floods caused by the invasion of groundwater into your home. Overflowing creeks, rivers, flash floods, floods resulting from dam failures and similar hazards are outside the scope of your homeowner’s policy. Only the National Flood Insurance Program offers this protection. NIFP reports that more than 20 percent of flood losses come from areas outside the designated high-risk areas. Visit NIFP for more information on flood insurance.
- Water back-up protection. Some homeowner's insurance policies exclude water back-up from sump pumps, sewers, drains and toilet overflows. Basic policies usually provide $2,500 to $5,000 limits of coverage. But if you have a finished basement, basic amounts probably won’t be enough to replace flooring, paneling, drywall, carpeting and other structural damage caused by water back-ups. Depending on your home, limits of up to $50,000 may be advisable.
- Are costly items scheduled to ensure coverage? Your jewelry, laptops and tablets, original artworks, furs and valuable collectibles can be damaged by severe storms, possibly even strewn beyond your property limits by violent winds. Don’t assume that these items are covered by your basic homeowner’s insurance policy. They usually are not. Get the items appraised and purchase endorsements for them so that coverage is assured.
- Are your “toys” covered? If a tornado can whirl a semi-truck like a piece of straw in the breeze, it can surely relocate or damage your jet skis, travel trailer and boat. Some people prefer to purchase separate insurance policies for each of their motorized recreational vehicles, while others add them to their homeowners’ policies and realize some cost savings. Let your insurance agent guide your decisions about how to insure these toys, but make sure they are covered and keep the policy(ies) in a safe, off-site location.
Finally, maintaining and up-to-date inventory of your home’s contents is a really smart move. A written inventory is the best way to document your possessions, but a thorough, room-by-room video can be useful in establishing what you once had, should your home or a room of your home be severely damaged.
If you need to update your homeowner’s insurance coverage, or if you’re looking for a great price on homeowner’s insurance, contact MDA Insurance at 800-860-2272, or click here for a quick quote.
When you have a family, you have got to have health insurance. Protecting your family's ability to receive the health care they need when they need it must be your top priority. Family health insurance plans provide just that protection. Finding an affordable health insurance plan that meets your family's needs can be a challenge.
What to look for in a family health insurance plan
Factors to consider include:
- What the health care network is--are there enough doctors in the network in your area to meet your family's needs? Are your doctors and specialists in the network?
- How do referrals work? Are you free to see a specialist in-network at will, or do you have to get a referral from a primary care physician?
- How much are the deductible and co-pays? Confused about these terms? Get information here.
- Is maternity care a covered benefit? If the health care reform law is upheld, maternity will be a covered benefit for all plans beginning in 2013, but as of now, it can be excluded from plans.
- Evaluate whether the plans exclude pre-existing conditions--some may require a waiting period before pre-existing conditions become a covered benefit.
Group health insurance plans for your family
If you are eligible for a group health plan through your employer, you may have a selection of plans from which to choose. Chances are you will pay a percentage of the full cost of the insurance plan, or your employer will allocate a fixed contribution and you will have to pay the balance of the premium. You may pay more for a more comprehensive plan, or a plan that offers a lower deductible or greater freedom of choice in health care providers.
Individual health insurance plans for your family
If you are not eligible for an employer-sponsored group health plan, you will have to pay the entire insurance premium yourself. If you belong to a professional or trade association, many offer affinity health insurance plans. In Michigan, MDA Insurance provides special individual and family health insurance plans to members of the Michigan Dental Association and Michigan Association of Commercial Dental Labs. Vision coverage is also included in some of these plans. MDA Insurance also provides health insurance through Blue Cross and Blue Shield of Michigan to members of many other Michigan associations, including the Michigan Retailers Association and the Michigan Green Industries Association.
Those of you who will be paying the whole cost of your health insurance may be wise to consider a high-deductible health insurance plan (HDHP). These plans typically have a lower premium, but do require you to pay a few thousand dollars out of pocket before insurance kicks in. Prescriptions are not covered by a HDHP until the deductible is met. Some HDHPs are eligible for a health savings account (HSA), which allows you to put money aside on a tax-free basis to pay for health care expenses. Learn about HSAs here.
But take heart, preventative services are covered at 100 percent before the deductible for any health care plan, due to the requirements of health reform. So if you are fortunate and your family is and remains healthy, you will still get preventative services without extra expense with a HDHP.
Buying on your own? Let an health insurance agent help you choose!
When you buy a home, you typically get a real estate agent to help with that process. When you purchase a health insurance plan, which could impact your wellbeing and financial security for years to come, you should consult with a licensed health insurance agent for guidance. Health insurance is complicated and can be confusing, and mistakes can be very costly. Take advantage of our services by clicking the button below.
Getting individual health insurance quotes can be a confusing process. Just trying to figure out the jargon is mind boggling for most people. This article will help you understand deductibles, coinsurance and other technical aspects of getting health insurance quotes. The goal: to equip you to get health insurance quotes for plans that you might really want and can afford.
Deductibles
Just like with your car insurance, the deductible on your health plan is how much you have to pay before the plan pays anything. With health insurance, the deductible is typically expressed as per person or family like this: $500/$1,000; $1,000/$2,000. What's that mean?
The first deductible set is for in-network providers; the second is for out-of-network providers.Essentially, you pay a penalty for going outside the network of doctors who have agreed to accept your insurance plan (called participating providers).
- Let's assume you are a family of three people and you stay in-network for health care services. With this deductible structure, a person must pay a $500 deductible out-of-pocket before the plan will pay benefits for that individual. Once that $500 has been met, the plan will pay benefits for that person. But, if deductible (out-of-pocket) costs for all three members of the family total $1,000, the plan will pay benefits thereafter, regardless of whether any individual in the family has incurred $500 in costs.
But there's a catch: if you are getting a high-deductible health plan (HDHP) quote, the way the deductible is applied is different.
- With an HDHP, you're likely to have a deductible that looks more like this: $1,250/$2,500; $2,500/$5,000.
- If you are the only person covered by the health plan and you stay in-network, you must incur $1,250 in deductible (out-of-pocket) costs before the plan pays benefits.
- If two people or more are included in the health plan, the full $2,500 in deductible (out-of-pocket) costs must be incurred before the plan pays a benefit for anyone.
Federal health reform law requires all plans to pay for certain preventive procedures at 100 percent
before the deductible.
Coinsurance
Coinsurance is the percentage of the cost that you will pay after your deductible is satisfied, with the balance being paid by the insurance company. It's often expressed like this: 25%/75%. The thing to remember about this is that the percentage that you pay is based on the fee approved by the insurance company for the service in question--and they usually get a good discount from the provider. So, while a service may cost $600, the approved amount may be $125. You will pay 25% of that, or $31.25, not $150.
Out-of-network co-insurance is typically much higher, sometimes as high as 100 percent. Be sure you understand the financial impact of using an out-of-network provider.
Co-Pays
Co-pays are a fixed amount that you will pay whenever you avail yourself of a specific service. For example, your plan may require a $25 office visit co-pay or a prescription co-pay of $10/$30/$75. We'll talk about tiered prescription co-pays later.
Stop-Loss or Maximum Out-of-Pocket
This is the total amount of co-insurance that you will be required to pay before the co-insurance is waived and the plan pays the full amount of the claim. This number can be as low as $1,000 or $10,000 or more. This represents the maximum financial exposure you have if you buy the plan, excluding co-pays or prescription coverage unless you are enrolled in a HDHP.
Tiered Prescription Co-Pays
Most health insurance plans have implemented tiered prescription co-pays to help encourage subscribers to use the generic or less costly drugs. In a $10/$30/$75 plan example, the $10 co-pay applies to generic drugs; the $30 applies to preferred drugs; and the $75 applies to non-formulary drugs. A formulary is a list of drugs that are approved to be prescribed under the insurance contract. Look for this formulary on your insurers' website. When subscribers are hit with a $75 co-pay for a prescription, they often seek out a preferred or generic drug to save money. So insurers are right. It does help hold down their costs.
Go get health insurance quotes!
So, now you're equipped with a basic understanding of the jargon involved in getting health insurance quotes. When you go looking for health insurance quotes, you'll be able to stack plans up against each other and compare these financial components to see what fits your monthly budget. You'll also know how much more money you are likely to have on the line. Only you can determine what the right combination of deductible, co-insurance and co-pays fits your needs. A good health insurance agent can help you make those decisions.
Professional liability insurance for podiatrists helps protect the doctor from the risks associated with every procedure he or she performs. Understanding your podiatry malpractice insurance policy, selecting the appropriate limits of liability and keeping your policy in force and up-to-date helps you protect your assets and future earning capacity. No malpractice insurance carrier will cover an incident that took place during a period in which you did not maintain an active policy. Likewise, finding the limits you carry are inadequate after a claim has been made is equally troublesome. These are two examples of why it's so important to review and renew your podiatry malpractice insurance policy annually.
The primary form of professional liability insurance written for podiatrists is claims-made coverage. Simply put, a claims-made policy is a form of malpractice insurance for podiatrists that provides coverage when a claim is made, provided the incident leading to the claim took place after the policy’s retroactive date.
How claims-made insurance works
Let's create a sample case in which you purchased a claims-made policy with May 1, 2011 effective date and a May 1, 2009 retroactive date. We will assume that your policy has been maintained and remains in force today. In March 2012, you are served with a malpractice claim stemming from an incident that occurred in November 2010. Because the incident took place after the retroactive date on your policy, your podiatry malpractice insurance carrier would provide your legal defense and indemnify you up to the policy's limits of liability in force when the claim is reported.
Conversely, if the incident that precipitated the lawsuit had occurred in December 2008, before the retroactive date, your claims-made policy would not have responded.
What are the main benefits to a claims-made policy?
There are several benefits to claims-made coverage that make it attractive to professionals:
- Claims-made professional liability insurance is relatively inexpensive during the first few years of coverage.
- A claims-made policy can benefit you because you are indemnified to the limits of liability in effect when a claim is made against you. Therefore, if you regularly increase your limits over the lifetime of your policy, your coverage would respond with the limits in force today even if the limits were lower when the incident actually occurred.
Although these benefits are attractive, you should be aware of a potentially negative factor.
An additional cost could come into play
If you ever cancel a claims-made policy, you may need to purchase what is known as "tail coverage." This is a special endorsement that allows claims to be submitted after the policy is cancelled.
Costs for tail coverage vary, but typically range between 100 percent and 200 percent of your last annual premium. Most companies offer free tail coverage in the event of death, disability and retirement, provided you've reached a certain age and carried you policy for a certain number of years. Check with your insurance agent to determine the eligibility guidelines under your policy with regard to free tail coverage.
Even though you may have added cost when you cancel a claims-made policy, your premium savings while the policy is in force may offset the back-end expense.
Where to buy claims-made coverage
The ACE Podiatry PLUS plan offers claims-made coverage. It’s available in Michigan only through MDA Insurance. You may qualify for various discounts that could modify your premium to better reflect the nature of your practice. Discounts include:
- New Podiatrist Discount
- Claims-Free Credits
- Group/Association Credits
- Risk Management Credits for 2 years - Insured podiatrists are eligible for online risk management and CME at no cost!
Call us at 800-860-2272 if you have questions about professional liability for podiatrists, or email us anytime. Maybe it's time for you to get a quote on a claims-made malpractice insurance policy through the ACE program. Use the button below to get a quote.
Choosing the type of dental malpractice insurance that's right for you can be confusing. One frequently asked question about dental malpractice insurance in Michigan is "What is a claims-made policy?"
Simply put, a claims-made policy is a form of dental professional liability insurance that provides coverage when a claim is made, provided the incident leading to the claim took place subsequent to your retroactive (or prior-acts) date.
No form of malpractice insurance will cover an incident that took place during a period in which you did not maintain an active malpractice insurance policy. Understanding your dental malpractice insurance and keeping it current and active is vital to protecting everything you've worked to attain or ever hope to attain.
How claims-made dental malpractice insurance works
Let's say you purchased a claims-made policy with July 1, 2011 effective date and a July 1, 2008 retroactive date. Let's also assume the policy remains in force today. In January 2012, you get hit with a malpractice claim stemming from an incident that occurred in 2009. Because the incident took place after the retroactive date on your policy, your current insurance carrier would provide your legal defense and indemnify you up to the policy's limits of liability in force when the claim is reported. Had the precipitating event occured before the retroactive date, your claims-made policy would not have responded in this claim scenario.
Once coverage has been verified in a claim situation, you are entitled to the same type and quality of defense and financial indemnification as you would be with the other form of dental malpractice insurance-- an occurrence policy.
Why choose a claims-made policy?
Claims-made professional liability insurance is less expensive in the first few years of coverage. And, if you regularly increase your limits of liabilty, a claims-made policy can benefit you because you are indemnified to the limits of liability in effect when a claim is made against you. A claims-made policy may be a good choice for:
- a new dentist
- an established dentist who is opening a new practice
- a dentist who is moving between practices.
Each person's needs are different, and each person's individual preferences will dictate whether a claims-made policy is the right choice at any career stage. But you do need to be aware of another factor.
There may be an additional expense
If you have a claims-made policy and decide to cancel it, you may need to purchase what is known as "tail coverage." This is a special endorsement that allows claims to be submitted after the policy is cancelled.
- Costs for tail coverage vary, but typically range between 100 percent and 200 percent of your last annual premium.
- Most companies offer free tail coverage in the event of death, disability and retirement, provided you've reached a certain age and carried you policy for a certain number of years.
- Check with your insurance agent to find out what your carrier's rules are with regard to free tail coverage.
Even though you may have this added cost when you cancel a claims-made policy, your premium savings while the policy is in force may offset the back-end expense.
Not all carriers offer a choice
Most people like freedom of choice when it comes to their insurance protection. But, not all insurance carriers give you the ability to choose between claims-made and occurrence coverage. Many sell only one form. If you are shopping for dental malpractice insurance in Michigan, ask your agent or the carrier what forms of dental malpractice coverage they offer. Don't assume that because a carrier offers only one form of coverage that it is the best or right choice for you. A good insurance agent can help you analyze your needs based on your lifestyle, career stage, practice goals and future opportunities. But only agents who are familiar with both types of coverage, like those at MDA Insurance, can provide that kind of assistance.
The Professional Protector Plan (PPP), underwritten by CNA Insurance and available in Michigan only through MDA Insurance, is one of the few malpractice insurance programs that grants you freedom of choice. You can get quotes for a claims-made or an occurrence policy, and evaluate the difference and the potential savings. And, if you decide to relocate outside Michigan, the PPP insurance program can follow you throughout the United States--regardless of which form of coverage you select.
Get help now
Call us at 800-860-2272 if you have general questions about claims-made or occurrence coverage, or email us anytime. Maybe it's time for you to explore the cost of a claims-made malpractice insurance policy. Use the button below to get a quote.
In the United States, group health insurance is the most common type of plan. Most people obtain their health insurance coverage through an arrangement with their employers. Health insurance carriers cater to the employer marketplace with group health insurance plans. Each carrier can define its minimum group size differently, but most often a group health plan requires a minimum of two subscribers. Some permit a group of one.
Here are some great things about group health plans:
- Generally, there is no waiting period for coverage to take effect. The employer determines how long the employee must work for the company before he or she is eligible for the health insurance plan, and when that waiting period ends, coverage is usually effective on the first day of the following month.
- The employer designs the plan that best fits their employees' needs and their own budget.
- Typically, pre-existing conditions are not excluded from benefit eligibility, and people in good or poor health can get coverage. Most group health plans do not medically underwrite participants, meaning that anyone who enrolls in the plan is accepted into it without having to prove they are healthy or insurable.
What’s the down side to a group health insurance plan?
- Cost. Premiums can be expensive. The cost of health insurance is an insurmountable barrier for many small employers, and it’s getting more costly.
What's the trend in group health insurance?
The percentage of small employers providing this coverage is going down. According to federal statistics:
- Only 49 percent of firms with three to nine employees offered any kind of health insurance to employees in 2008, down 9 percent from 2002.
- Group health coverage seems to be a bit more affordable for firms with 10 to 24 employees, with 78 percent of those employers providing a health plan in 2008.
Here's the 'Up side'
Offering group health insurance makes an employer more attractive and often fosters employee loyalty.
For employers who can afford group health insurance, there are tax incentives to do so. Under the Patient Protection and Affordable Care Act, better known as health reform, employers who have fewer than 25 full-time equivalent employees whose average annual wages are less than $50,000 and who pay at least half of the individual (not necessarily family) health care premium can get a tax credit for providing health care insurance.
Employees receive employer-sponsored health insurance benefits on a tax-free basis.
Making group health insurance more affordable
Cost sharing is common among group health plan participants. The employer determines what percentage of the monthly health care premium it will pay on the employee’s behalf, and the employee must pay the difference. Sometimes, employees can pay their share of the insurance premium using pre-tax dollars, thereby reducing their taxable income. Special premium-only flexible spending account plans can facilitate such an arrangement. You can find out premium-only FSA plans from knowledgeable insurance agents or companies that specialize administering in employee benefit plans.
The Michigan marketplace
In Michigan, where MDA Insurance is licensed, the health insurance marketplace is dominated by Blue Cross Blue Shield of Michigan, which offers a plethora of group health plans. As a BCBSM agent, we can offer employers plans with 20 different deductibles, and help them select from seven prescription plans.
BCBSM group insurance plans include high-deductible health plans that are eligible for tax-advantaged health savings accounts or that can be combined with health reimbursement arrangements, as well as more costly low-deductible plans. See the group health plans offered by MDA insurance, or call us at 877-906-9924 to learn more about which group health insurance plans will work for you.