The minimum deductible for 2012 is the same as for 2011. The 2012 minimum deductible for self-only coverage is $1,200. The 2012 minimum deductible for family coverage is $2,400.

The maximum out-of-pocket limit for 2012 for self-only coverage is $6,050. The maximum out-of-pocket limit for 2012 for family coverage is $12,100. The maximum OOP includes deductibles, copayments, prescription drugs, and other amounts. It does not include your insurance premiums.

The maximum annual contribution limit to your Health Savings Account for self-only coverage is $3,100. The maximum annual contribution limit to your Health Savings Account for family coverage is $6,250.

Generic drugs have the same active ingredients as brand name drugs. The dosage is the same. They do the same thing as the band name drug. Generic drugs have the same side effects as the brand name drug.

Some people think that since a generic does not cost as much as a brand name drug it must not be as safe. The FDA requires that the generic meet all the same safety standards as the brand name drug.

Generics are cheaper because they don’t have to cover the cost of the years of research and development needed to bring a new drug to market.

There is a myth that generics are manufactured in plants that are not as good as where the brand name drugs are made. The fact is the FDA requires plants that make generics to meet the same standards as brands. The FDA reports that about half of all generics are made in the same plant as the brand name drug.

Trademark laws do require that generic drugs have a different color than the brand. The active ingredients are the same, just a different color.

The answer is the Texas Department of Insurance (TDI) requires that health insurance companies licensed in Texas provide “more benefits” than in any other state. These required benefits are called “state mandates“. The more benefits you receive, the more you have to pay.

In the past it was possible to reach the prescription drug benefit maximum after a few months. Now consumers no longer have to worry about their prescription drug benefit running out.

As you would expect, you do not get something for nothing. While the Affordable Care Act gives you unlimited prescription drug benefits, it also necessarily caused health insurance premiums for everyone to increase to cover the addition drugs the insurance companies will be paying for. Consumers who fill only two or three prescriptions per year will subsidize those who fill four or five every month.

This is only a very quick look at a few things identified as preventative services. There are at least 56 procedures covered currently, and the list is growing as Congress writes the law.

It is important to note that these preventative services are provided at “no out of pocket” costs to the patient. That does not mean that there is no costs associated with all these new included benefits. No one works for free.

The costs associated with performing all the extra medical procedures mandated by the Affordable Care Act has caused health insurance premiums to increase dramatically. Now you know why your health insurance premiums are increasing 10% to 35% annually.

They now believe that people with pre-existing conditions cannot afford to pay the PCIP premiums. Keep in mind the the premiums set for PCIP are artificially low. They do not reflect the real cost of insuring someone who is going to file a claim for tens of thousands of dollars during the first year. Kathleen Sebelius announced that she would lower the current premium of $350 to $250.

This makes no sense at all. If a business is losing money at $350, why would it lower the premium to $250. This will just accelerate the rate of loss to the business. In this case, the business is the government. You and I as taxpayers are the ones who are going to have absorb the increased loses incurred by PCIP. You taxes will have to be raised to pay for your neighbor’s medical bills. I hope your neighbor comes over and thanks you.

What do you think?

In the case of pregnancy, women would buy insurance in the seventh month, pay a $200 premium for four months ($800), and after the baby was born healthy, drop the insurance. They would present the insurance company with the $10,000 bill for the baby. That is a guaranteed loss of $9,200 for the insurance company. On a personal note, if someone brought you $800 and asked you to swap it for $10,000 of your dollars, would you go to your bank and get your $10,000 to exchange for their $800?

For example, during an office visit, the doctor orders a chest X-ray. The clinic sends a bill for $127 for the chest X-ray. Because X-rays are a “covered” service, you are obligated to pay only the negotiated rate of $13. You are not responsible for the $114 difference.

Use of generic prescriptions when possible helps keep health insurance premiums low. It is important to use generics whenever possible because spending on prescription drugs is the fastest growing segment of overall health care costs. Health insurance premiums rise in direct proportion to the increase in health care costs.