Hispanic insurance expert offers advice in tough economy

Insurance advice for today's economy
Adrian Perez, Latino Journal

Rudy Rivas is more than an insurance broker. His efforts have saved families from getting the wrong insurance, too much insurance, or options for no-cost health coverage. He has been the recipient of the Small Businessman of the Year award by the U.S. Congress and has also received the distinguished Ronald Reagan Gold Medal for his entrepreneurship. Having been honored as "One of the Business People to Watch" by Hispanic Magazine, it became apparent that Mr. Rivas was the person we wanted to ask questions about insurance in today's economy. Here's what he had to share.

Q. The nation is obviously in a recession and people are looking for ways to make ends meet, what would you recommend in terms of minimum insurance?

A. Folks need to understand that when we have Employer Healthcare it is part of our compensation. But, when we buy it ourselves it should be for the "Big things". A plan was introduced by the Government in 2004 called a Health Savings Accounts (H.S.A), which are basically high deductible plans that put the consumer in control of her/his healthcare costs. Folks can learn more at www.HSAInside.com

Q. Are there good programs for small and micro business owners to offer insurance to their employees?

A. Employers have offered Health plans as a part of a employees compensation, so a employer needs to pick plans that offer a good value to employees. California is the only State in America that offers such a high percentage of HMO plans. So in that vein, employers in California should look into offering H.R.A accounts and possible Hybrid HMO & H.S.A. plans that still offer up-front benefits that greatly diminish their monthly premiums. The days of low co-pays and 100 percent hospitalization are over. Today's employers need to get aggressive and ask for plan reductions outside of normal "Anniversary".

Q. California, Texas and Florida are states that have the highest number of Latinos in the U.S., do they also carry the largest number of uninsured Latinos?

A. Texas had the highest percentage of uninsured residents under the age of 65, with 40.5 percent of Hispanics uninsured. It is not much better in Florida where 40 percent of Hispanics are without healthcare. In California, figures show 33 percent. I disagree with such a low uninsured rate in California. I believe that figure is more along the 38-40 percent rate. In simple English, throughout America more than one out of every three Hispanics is uninsured.

Q. What's less expensive: Paying for emergency healthcare out of your savings or carrying a healthcare policy?

A. Recently President Obama revealed a fact in his speech regarding healthcare, "more than 25 percent of Americans said that housing problems resulted from medical debt, including the inability to make rent or mortgage payments and the development of low credit ratings." About 1.5 million families lose their homes to foreclosure every year due to unaffordable medical costs. Electing healthcare can literally save your financial status in America. Obtaining a health plan can literally save a person's future financial stability.

Q. As our population gets older, is there a bigger need for insurance?

A. Hispanics comprise the largest minority group in the United States, and the number of older Hispanics is growing rapidly. By 2050, Hispanics will be the fastest growing population in the 65-and-over age group, reaching 15 million. Diabetes topped the list of concerns for the majority of the community members. Twenty-three percent of Hispanic elders have diabetes compared to 14.3 percent of their non-Hispanic peers. They are also more likely to be hospitalized for diabetes due to poor disease management. It is imperative that every Hispanic go to a physician today and receive a complete physical. Recently I went in to my physician and my Doctor said I should diet. I have since then lost 25lbs my BMI is now down to 26, I feel great and I challenge every single Hispanic male to join me in feeling better and eating better.

Q. A typical couple in their 30s have three children (two boys and a girl) what type of insurance would you recommend?

A. When a family comes to me looking for healthcare, I first inform them about State plans for children. Families should buy according to needs, for example a young lady who needs maternity coverage should make sure that is a covered benefit. For a young man, pick a plan that does not cover maternity and for most men picking a high deductible plan will work fine. Anyone buying Insurance of any sort should consider it as a financial equation. Take your monthly premium, multiply that amount by 12 and that will yield an annual cost. Now take the annual out of pocket max of your plan this yields the true costs of healthcare, a calculation I created. Feel free to contact me for your personal calculation, overspending on healthcare is just foolish.

Mr. Rivas owns and operates Health Insurance Agencies in California and Florida. He is a well-known speaker on "Taking Control of Health Insurance Premiums," with HSA and HRA type plans. His company, www.hispanicinsure.com, has over 1000 Active Groups, and or Individuals.