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Can you Cancel a Commercial Insurance Policy?

As a small business owner, you might find yourself in a situation where canceling your policy is the best solution. This comes from a variety of reasons: you have a better policy offer elsewhere, changes in your business mean you need different coverage, or you might be shifting your company’s goals altogether. Whatever your reasoning, there are a few things to consider before you cancel your insurance.

hands to cancel policy — *Think before you back out on a contract. There are more penalties than just a fee attached.*

Penalties & Changes

Often times, your insurance company will impose a penalty if you cancel it, rather than waiting to not renew. Signing the contract for your policy is to ensure you’ll pay it for the full term. It’s security for the provider.

However, if you find yourself needing to cancel, the penalty fee might actually be cheaper than trying to ride out the term or doubling up on policies. We know rising insurance rates play a part in policy changes, but here are a few things you might not know:

Comparisons between plans should be the item on the checklist. If your new plan is cheaper, note the final difference to see if canceling will actually benefit you.
If you do decide to go forward, ask for the penalty specifics from your insurance provider. Having concrete numbers to work with will help with the bottom line for your business, so you can plan for the financial changes.
Has your new insurance firm made all the final checks? Make sure you have a 100% accurate number for your premium.
Finally, check with the next company you’re signing up with. Do they have bundles to save you money? Are they easy to work with? How is their customer service team?

When you finalize and complete these items, you will have a well-rounded idea of what canceling your insurance policy will bring.

A Note on History

Like any relationship, having a history with a company could help you in the long-run. If you’ve been with a company for several years, then you’ve built trust with them. Canceling and turning to another company could spell trouble in the long run. While the policy could be cheaper, if something were to happen (like your account falls into bad-standing) then it could prove harder to recover.

For example, if you know your broker on a first-name basis, then they might help vouch for you with an underwriter for a new policy, should you find it in turmoil. Too many claims or cancelation threats from the company could be easily solved by citing your history with the company.

person talking with agent to cancel policy — *If you like your insurance agent (and trust them), it could be worth paying a little more and staying with your current policy.*

All in all, if canceling is in your future, it needs to be done with as much (maybe even more) preparation than purchasing coverage. There are many strings attached to these policies, and you need to be aware of each of them and how they’ll affect your business in the future. It could be as simple as an added fee, but if you don’t check it out, you could be saddled with hefty premiums in the future.

EZ.Insure can give you the help you need to make the best decisions for your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

How to Negotiate With Your Insurance Agent

So, you’ve successfully got your business up and running, you got all of your finances in check, and now you’ve searched for a quote with EZ.Insure’s quote engine to find a new policy (group health or commercial). So–now what?

Well, you definitely can’t sit back and relax just yet. Now, it’s time for you to put on your Negotiator hat so you can get the best rates for your company. We’ve got a handy list here for exactly what you need to do (and why).

Be Hungry

woman meeting with insurance agent — *Like most conversation skills, this takes practice. Try talking with a friend to hone your edge.*

And we don’t mean for a burger.

Be hungry for answers and for results. When you take a call or travel for an office visit, bring a notepad or use a device to record important questions beforehand. Often times, people forget (or are reluctant to speak about) potential savings unless asked first. These questions involve things like:

Are there any discounts?
What are all the rates I qualify for?
Why should I purchase from you?

Come prepared to every meeting with a desire to better your business. If you come with a fighting attitude, the rest will fall into place. People respect you more when they see the conviction you have for your plans. It makes you look more attentive, reliable, and attractive when you arrive ready to resolve things.

Be Informed

Don’t just take everything at face value. Of course, insurance agents are the industry experts, after all, they do have to pass an intense exam before they get their license. But, don’t forget that they’re human too. Sometimes, it’s impossible to know absolutely everything.

People can overlook information as well. Do some digging on your own (nothing too deep, just enough to be aware of things like fees). This way, you’ll be aware of insurance rates and what the market says about them. You’ll also find it easier to talk about your terms if you know the lingo. Certain words like “premium” can mean different things in normal conversation.

close up of a suit for an insurance agent — *A bonus tip: dress to impress. You’ll feel better and look more confident.*

Be Open

If you’re shopping around for a policy, do just that–shop around. Don’t just take the first offer handed to you. If you look around at a bunch of different plans (an easy tool with EZ.Insure) then you’ll have a better idea of what you’re buying comparatively. Your rates aren’t concrete, so you have some wiggle room with negotiating a better price if you can cite another source.

Remember, even if you’ve found the perfect policy and you love your agent, you can check back regularly, about every six months. Check on your insurance package to see when it’s updated and make a habit of asking the above questions. Circumstances change in the insurance world regularly, and you don’t want to miss out on a surprise cost-saving option that just came up!

EZ.Insure was born to help you get to this point. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

Proposed Health Coverage Transparency Rule

A new transparency rule is coming, pushed forward by the current administration. It is focused on your health insurance, and how much information is revealed to you.

With health insurance, you definitely don’t want information hidden, and this goes double for fees or anything that’ll cost you money. For the most part, insurance agents work hard to make sure you’re well-informed to make decisions regarding your policy, but they can only say so much.

people sitting at a table talking about the transparency rule — *Changes are coming to teams from insurance companies to hospitals. Everyone will have to be on board.*

What the Rule Will Do

If it goes through as proposed, the rule will change the way prices are available, thus creating a better environment for people to comparison-shop for their medical work. Under this rule, both group and individual insurance markets will have to change the administration of their information. This will affect three things:

Give cost-sharing information to enrolled individuals online or in paper form. Online information will be accessed through a tool on company websites.
Disperse both in-network and out-of-network negotiated rates plus allowed amounts. These will be available in two machine-readable files.
Insurers could access “shared savings” by offering lower-cost plans and claiming the credit their enrollee’s saved by choosing the cheaper provider.

Under this rule, the disclosed information will come with seven different items:

Estimated cost-sharing liability– An averaged amount for the patient’s payment, not including premiums or otherwise. It will show cost-sharing savings or be eligible for their market plans.
Accumulated amounts– The amounts already paid (deductibles, out-of-pocket maximums, etc.)
Negotiated rates– The payments (and how much) made by the insurers, third-parties, or otherwise to in-network providers
Out-of-network allowed amounts– The maximum amount your plan/insurer covers for a specified medical expense if it’s out-of-network
Bundled payment for listed items/services- A list of covered items/services for the cost-sharing estimate. Helps with your payment
Coverage Prerequisites- A note for enrollees to see what requirements they need to meet before their expenses will be covered. Ex. step therapy
Disclosure notice– Basically anything that needs to be told to the person. Ex. an item not shown in an earlier document, differing final prices, etc.
We’ll have to learn more about our own insurance with this rule. Better visibility means more choice for the policyholder.

The outcome everyone is hoping for is that with visibility comes competition. Hospitals will have to compete with others for their price list, hopefully driving prices down. However, the hospitals fighting this rule believe that insurers will covertly come together to rig the prices. They also aren’t happy about an increase in administrative costs. Unfortunately, we won’t be seeing any changes until 2021 with most hospitals asking for extra time to prepare for the changes. We remain hopeful that this transparency rule will bring positive changes.

If you are looking to get more coverage for your company, EZ.Insure offers solutions. Your agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.

Your 2020 Coinsurance Guide

Once you sign up for a health insurance plan, you are immediately expected to start monthly premium payments. Then, if you incur medical expenses such as lab work, you are expected to pay these expenses, contributing to your ‘deductible.’ A deductible is an amount you have to pay before your insurance starts paying a percentage. Then, once you are finally all caught up with your deductible, your insurance policy covers the rest of your claims, right? Well, kind of, unless your policy has a coinsurance clause.

Once your deductible is met, any insurance-covered procedure, treatment or service will result in a medical expense. This is called coinsurance. Your insurance company will pay a large portion of any bill (after your deductible is met), and you are responsible for the rest. There are different breakdowns for how the coinsurance is paid for.

Coinsurance is a great option for people needing a little extra help.

How It Breaks Down

The divisions in coinsurance policies are usually broken down into 70/30 or 80/20. What this means is the insurance company will pay 70% or 80%, and you will pay the remaining 30% or 20% out of pocket. The most common coinsurance breakdown is 80/20.

This will only apply once your deductible is met. If you have a $1500 deductible, then you must pay this off first before activating the coinsurance.

Now, let’s use an example. If your medical bill is $2,000 and you have a $1,000 deductible, then the portion of the bill that the coinsurance will apply to is $1,000. With a 20% coinsurance, you will pay $200 extra. In total, the $1,000 deductible plus the $200 remaining of the coinsurance will equate to $1,200 out of pocket.

Now if your deductible was already met and you had that same procedure that was $2,000, then you would have to pay 20% of it. The sum total of $400 out of pocket, since the insurance company paid $1,600 of the service.

Out-of-Pocket Maximum

Now, to throw a wrench into things, health insurance companies offer plans with an out of pocket maximum- but this will work in your favor if you have coinsurance. Once you reach your out of pocket maximum, then the insurance company will pay for any following services 100%.

For example, if you have a $5,000 out of pocket maximum, then the $1,000 deductible you paid goes towards that. This leaves you with only $4000 left to pay. Every 20% or 30% you pay in coinsurance goes towards your out of pocket maximum.

If you have surgery that costs $20,000, then you will have to pay a 20% coinsurance of $4,000. Once you pay that off, including the previous $1,000 deductible, then you can not be charged for anything further out of pocket. The out of pocket max will have been satisfied and the insurance company must pay any following services fully.

money saved from using coinsurance — *Think of the money you’ll save by using this insurance method–paying completely alone could be devastating.*

Because policies are renewed annually, once the new year begins, then your deductible restarts, and you will have to meet that price again. Some people have to deal with coinsurance, while others just have to pay their deductible and the insurance company will pay the rest.

In order to find a plan that meets your budget, and needs, speaking with an agent will help. They can help guide you in the best direction, and explain to you thoroughly how much everything will be. You can discuss with them coinsurance, and if you would like a plan that has one or doesn’t. To speak to one of our highly trained agents in your area call 888-350-1890, or email us at replies@ez.insure. Or to get instant quotes, enter your zip code in the bar above. Health insurance has so many different variables. Let us make it more simple and easy for you.

What to Look for With 2020 Group Health Plans

Despite pushes for change in Congress, it looks like the ACA is still at the top of the list for people. With solid medical benefits and cheaper premiums, this controversial program will keep people covered, but with only the basic essentials. More and more, employer health seems to be the way to go if you want both comprehensive coverage while still maintaining a budget.

group health plan money with calculator — *Calculating your savings is easier when you know what to look for.*

The healthcare system seems to bring out a new update every month. It can get confusing to anyone that’s just started. Let’s take a look at what you can expect.

Besides the standard HRA improvements, there are more interesting changes to be aware of for the future. Here’s a couple we’ve found:

Accountable Care Organizations

These networks were created to foster cooperation in the healthcare system. Through building a “team” of sorts, hospitals, doctors, and specialists can provide a smooth transition through the system for the patients.

This is great news to watch for as an employer. Check with your group health plan to see if there’s a network near you to highlight for your employees. The easier you can make it for them to get well again, the better.

Virtual Care

Programs like Teledoc are growing in popularity. It’s no wonder considering their ease of use. Why go to a doctor’s office and deal with their wait times, prices, and discomfort when you can just pick up your phone for the same services? See if the plans you offer your employees include these services.

Of course, this won’t cover every case. However, rising at-home services could lead to improvements in our medical system. If you have something simple like the flu, and just need prescription medication to get well, then virtual care is a great fit. Think of how this can alleviate crowded doctor’s offices. In addition, the spread of germs would decrease as ill people can stay in the comfort of their own homes.

A 6% Premium Rise

Estimated premium increases are about 6% across the board. While some larger companies are implementing cost management adjustments (These tactics reduce their projected cost.), it still will only reduce the overall budget increase to 5%.

rising group health plan charges on tablet — *Unfortunately, there’s no good news overall with health charges. Rates just seem to rise.*

Statistically, the smaller to midsize businesses pay a bit more than their larger counterparts for the same benefits because they simply don’t have the clout to bargain prices down. These businesses do have the option of turning to consumer-directed health plans (CDHPs) to help out.

CDHPs are high-deductible health plans that are linked to either an HSA or an HRA. However, it’s projected that employers will reduce the number of employees covered by these CDHPs because employees have stated they’d rather have a choice for their benefits, meaning they’ll turn to other alternatives like a preferred provider organization (PPO).

With so many changes coming, it can be hard to see where your best choices lie in purchasing a new Group Health plan. While you can see the reasoning for it, the ultimate decision for your business needs to be a tailored fit. That way, you get the best coverage options for your workforce while still meeting your budget.

If you want to get the best coverage for your company, EZ.Insure offers solutions. Your personalized agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.

The Future of Commercial Insurance

The future is now. We’re researching virtual reality, nanobots for health, and can even talk to coma patients without the use of invasive surgery. With all these advancements, our world is going to change how we interact with the economy, and therefore, insurance.

However, these changes come with some pushback. Not everyone is on board with progress, take Blockbuster for instance. They decided to opt-out of utilizing the internet to disperse their videos and look at them now.

Can the same be said for the insurance world? We as people are shopping differently, working differently, and expecting different results. What does this mean for commercial insurance?

apps on a cell phone changing the way we get insurance — *There’s an app for everything now! Pizza, games, meetups, dating, and now–insurance?*

How Are We Different?

It’s no secret what our demands are now: everything delivered and fast. With the rise of Uber, Shipt, and Doordash, we now can live our lives completely in the comfort of our own home. Why leave? We have Amazon to give us our essentials, and with their rising drone fleet, even that could be delivered on the same day.

We’re changing as a society to having our needs met within the hour they arise. Want a date? Download Tinder. Throwing a party? Order food and play music on your phone. Apps dominate our handheld ecology, further pushing this culture of the world literally at our fingertips.

Why Is This a Problem?

To put it simply, the insurance industry needs to catch up.

Some companies have, like Lemonade (homeowners and renter’s insurance) or Root (car insurance). They are the exception to the rule, however, not the standard. And this isn’t to say companies aren’t creating apps, some are, but the truth is, it only delivers information to people’s fingertips, not the power to change things.

Truthfully, the industry must expand its liability coverage. Not everyone goes to work in an office anymore. With the rise of freelancers comes a need to fit policies to an odd-shaped market. These freelancers are small-business owners, and a whopping 40% are uninsured, barely even looking at liability for their work life. And it makes sense, the policies offered just don’t fit their lifestyle.

Modern insurance contracts are clunky, long, and don’t favor short, bursts of work. For these gig workers, they need a snappy, instant digital certificate to insure them. Who wouldn’t chuck $5 at an insurance company for a BOP-lite policy for a 2 week period?

Small businesses are born online, further widening our technological world. How does an insurance company begin to cover these businesses? Some are fully remote, requiring cyber liability, and while useful, they aren’t optimized.

Designers, writers, software developers, and more use bite-size jobs, but who’s going to cover them?

These business owners can live highly stressful lives, and constant market changes don’t support purchasing a hefty policy. If commercial insurance wants to snag this group of people, it needs to shift its focus to supporting what they need.

What Can Change?

The insurance industry can benefit from the overall interface of companies like Netflix, Doordash, and Amazon, meaning a focus on customer satisfaction and flexibility.

The new generation of small-business owners need policies that they can interact with at the flick of a finger, not another chore to accomplish like a meeting. And further, these policies need to be bite-size enough to not only explain fast but also be able to buy fast. Lowering policy coverage can also make it cheap enough to be a viable option for these small business owners.

Slap on an amazing customer service team with 24-hour availability (with a cute logo), and you’ve got yourself a whole new client base.