First of all – the quality of your protection policies.

Protection - the policy conditions minefield

Let's use an example. Dr Cureall, a family man with a large mortgage, has decided it is high time he sorted out his protection requirements.

He wants to know what types of protection there are, and approaches us to ask for advice. We explain there are 3 types of cover:

•Life protection, paying out a lump sum or income over a certain period of time if you die

•Critical Illness protection, a lump sum paid if you have a specified illness or are totally incapacitated

•Permanent Health Insurance, an income paid to your normal retirement age (or while you are ill) if you cannot work for health reasons

Dr Cureall decides he would like to cover all eventualities (next newsletter explains why this is a good idea). The cover linked to the mortgage will be a reducing benefit (he has a repayment mortgage), whilst the family income benefit will be indexed to take into account of inflation. The aim here is to pay off the mortgage and leave enough for his wife and children to continue their lives without any financial worries.

So let’s look at each type of protection:

Life Cover

This is the easiest type of cover to understand. It pays out a lump sum on death and normally the policy to buy is the cheapest one the Cureall`s can find. They may want guaranteed premiums, which means that the insurance company will not increase their future premiums if they are paying out a lot of claims and need to increase their premium to compansate for this. The alternative is reviewable premiums.

Secondly, and crucially, the policies must be written under trust for the beneficiaries. This means any monies will not form part of Mrs Cureall`s estate, and therefore not compound any inheritance tax issue, but still ensuring the Cureall`s will receive their money (potentially saving thousands of pounds of Inheritance Tax).

In our experience, the majority of life assurance policies are not written under trust.

Critical Illness

This type of protection has become more popular in the last few years, particularly with a view to paying off debt. It is often taken out in conjunction with income protection (PHI).

Since this form of protection is dependant on the number of conditions covered and their wording, there can be a huge difference between companies.

Let’s look at a couple of examples:

Heart attacks account for a large percentage of claims. Many companies will insist on there being 'typical chest pain' present for them to pay out amongst other criteria. However, a small proportion of companies do not stipulate this and may be more attractive.

Total Permanent Disability is seen as a 'cover all' if the condition does not fit a specific illness listed in the policy conditions. So if Dr Cureall cannot work then we could assume he'd be covered. Maybe, but not always. Many companies specify in their occupation definitions that the claimant must return to work if they are 'suited' to another job or even worse can perform 'any' type of job.

Not very reassuring if you find you have this type of plan as a doctor or dentist. Where possible, you should make sure the plan has an 'own' occupation definition (which may not normally cost you any more money).

Permanent Health Insurance

This is a crucial part of protection. Whilst thousands of pounds have been paid in claims over the years, you really do need to be aware of the pitfalls:

Health insurance for small businesses is an issue that many small business owners struggle with. Finding group health insurance that is both affordable and valuable can be difficult. However, as many entrepreneurs soon learn, there are actions that can be taken to increase the odds of a satisfactory outcome for both the small business owner and his or her employees.

First, the question may be asked as to why coverage for small groups is less affordable? The question can be found in one word: Risk.

With small group health insurance, it is much more difficult for underwriters to predict the average cost of medical care. That is, small businesses have fewer employees to spread the risk of a major medical claim. Indeed, if a member of a small group incurs a major injury or illness, it impacts the overall costs of medical care for the whole group much more so than for larger groups. Accordingly, in an effort to protect themselves from this higher level of risk, insurance companies charge more for health insurance for small businesses.

Small large companies will opt to self-insure their employees. However, unlike their larger counterparts, small businesses typically cannot afford to serve as their own health insurer. That is, they cannot directly fund health insurance for their employees because the financial risk is simply too great. Given this environment, what can small businesses looking for health insurance do?

One option for small businesses is to join a trade or professional organization that offers group health insurance for its members. If this is not an option, small business owners should contact a health insurance broker and request several small business health insurance quotes. By doing this, the small business owner can at least get a sense of what his or her options are for a known budget.

There are a number of options that doctors will generally give to aide them in the diagnoses of gastro esophageal reflux disease, some of them have the ability to sound confusing or difficult to understand. The most popular technique for diagnosing acid reflux is the upper endoscope. Even though this is the most popular, this does not mean that it is necessarily the best for you. Following are answers to a few questions you may have about the procedure.

What is it?

The upper endoscope is a procedure allows doctors to see what is going on inside you with out the use of a scalpel. A tiny camera at the end of a small tube is guided down your throat, past the esophagus and into the stomach. The doctor watches a monitor to see about any irritations or abrasions anywhere along the path.

How do I prepare for it?

As with many medical procedures, especially the ones involving the digestive tract, it is generally recommended that you do note eat or drink for about six hours prior. Of course, the doctor will give you the detailed explanation as to how to prepare, as well as telling you about any other special circumstances. Be sure you are comfortable with the procedure and all your questions are answered before undergoing it. If there is any doubt, don’t do it. Only allow this when you are completely at ease.

What is the recovery time?

The good news about these types of tests is that there is very little recovery time. You will be given a small sedative to relax you before they begin and you need to wait for that to wear off. As it does, notes will be taken as to how your throat is feeling. A chemical gargle may be ordered if your throat is sore and swelling is painful. These side effects won’t last long and you will be back to normal in no time.

Guaranteed issue insurance is issued to a consumer, regardless of the consumer's current health. It may be offered by companies with specialized high-risk offerings, or it may be mandated by state law. Usually, laws aimed at requiring guaranteed issue coverage also require that the coverage be given at a uniform fixed price. Laws requiring this type of coverage have been considered in a number of jurisdictions. There are also laws that require guaranteed coverage of particular procedures, such as preventive screening for colorectal cancer.

Guaranteed Issue Life Insurance Some companies specialize in offering policies advertised as guaranteed issue life insurance. These companies will issue life insurance policies with no required physical exam. Typically, the companies do require the insurance applicant to answer questions, that may lead to denial of coverage. However, there are companies that will offer coverage with no exams and no questions. Generally, this type of policy will only cover funeral expenses. It is difficult to find any guaranteed issue policy that will provide coverage over $15,000 to $20,000. These policies also tend to have high premiums, which can end up exceeding the benefit amounts. The policies will usually have a graded benefits clause under which the benefits are limited in the event that the insured dies within two or three years of obtaining the policy. Graded benefits clauses are intended to prevent people from signing up for a policy when they are literally on their deathbed, and then having the full policy death benefit paid to their estates.

Controversy Over Guaranteed Issue Insurance Various issues have arisen with regard to proposals to enact state laws requiring guaranteed issue health insurance. There are several arguments put forth by those who oppose such insurance laws. The primary argument is that this type of insurance will unfairly lead to increased insurance costs for healthy people. The argument points to the idea that in order for an insurer to be able to afford to cover people with existing health problems, the insurer will need to charge higher rates; and those rates will need to be applied to everyone. Along with higher rates, it is argued that fewer choices will result. A related argument is that guaranteed insurance will tend to discourage people from buying health insurance until they are actually sick, which would contribute to the need for higher premiums. The idea is that healthy people will not need to buy health insurance now, if they know they can always obtain it when they get sick. The effect of guaranteed issue insurance is argued to be the opposite of guaranteed renewability, where the renewability is seen as a way of encouraging healthy people to obtain coverage.

More than 45 million Americans go without health care. At 14% of the gross domestic product, national health care spending is at an all time high. Health care issues and prescription drug costs continue to gain increasing attention during election campaigns, and many Americans are calling for the need to provide national health coverage as a universal service to all residents.

The government already provides healthcare to 28% of Americans. Medicaid programs cover medical treatments for people who are of low income and limited resources. Medicare provides health care coverage to U.S. citizens over the age of 65, and to certain people under the age of 65 with specific disabilities. While neither of these systems are perfect, advocates call for the expansion of similar national health care products to service all U.S. citizens. Although 61% of Americans have private health insurance, usually through a group employer, proponents of national health care coverage believe that only government reforms and mandates can control rising health care costs and make coverage available to all citizens.

Among physicians who support a national health care system, a single-payer system is seen as the only solution capable of providing coverage to the uninsured or underinsured, while also controlling the skyrocketing health costs due to drug pricing, malpractice suits, and long-term care. Under a single-payer system, the government would finance health care, but delivery of services to the consumer would be managed by private parties. How to integrate this in a cost-efficient manner, without breaking our current system, continues to be a source of much debate.

The call for a universal health care system began under the Theodore Roosevelt administration, and was a major issue and topic of debate during the Clinton administration. During this time, First Lady Hillary Clinton was appointed by President Bill Clinton to head the Task Force on National Health Care Reform, making national health care her primary concern. The system reforms she proposed were too complex for many Americans to understand and they were defeated in Congress. In 2003, President George W. Bush signed the Medicare Prescription Drug, Improvement, and Modernization Act. This was done to overhaul and expand a system which had become antiquated.

Despite this, many experts believe Medicare will run out of money as the baby-boomer generation requires greater, more intensive health care, and suggest national health insurance as the only solution. Many proponents of national health care point to the face that the United States, which is vastly rich in its resources, should be capable of providing the same type of national health care coverage that is universally offered in other modern, industrialized nations. National health care systems have been in practice for some time in many European nations. Those systems don't provide the same independence of choice that individuals in the U.S. demand.

Have you experienced being sick or met an accident and don’t know where to get help in covering all the hospital expenses? Or are you futuristic enough to think of possible future problems you might be encountering considering unwanted but unavoidable events such as absorbing viruses or being involved in a car accident? That is not a problem anymore. All you need is buying a health insurance.

Having a health insurance will lessen your worries of future dilemmas on thinking of how to pay your hospital bills. The health insurance company then is obliged to cover up your bills depending upon what was agreed. Some health insurance plan provides a whole coverage of all your hospital expenses. Others depend on the contract you have signed.

Safety Tips in Choosing a Health Insurance Company

1. Shop around some well-known Health Insurance Company.

- It is appropriate to search for health insurance company that will satisfy your medical needs. You may ask some of your friends and relatives for recommendations. Be sure that the company has a licence to run and that it has been proven for years in delivering satisfactory service.

2. Think about your health needs.

- If your family has a special medical needs or one member of the family needs to attend a specialist on a regular basis, it is better to compare first the benefits that each health insurance company offers. With this way, you’ll get the chance of choosing a company that can cover all your medical needs.

3. Ask questions and clarifications about their insurance policy that seems unclear to you.

- You have to understand every bit of statements written on the insurance policy. You may ask questions to the sales agent who offered you the insurance. Never buy a policy in which you don’t understand anything what is written. Acquire all information you’ll need about the policy for you to be assured about the benefits you’ll be receiving.

4. You should be knowledgeable about your rights as well as your responsibilities.

- Knowing all your rights will somehow protect yourself against nuisances. These will ensure a smooth sailing relationship between you and the insurance company. You must also know your responsibilities to prevent any conflict and future hassle that might happen caused by your negligence.

5. Buy a Health Insurance Plan that has an affordable cost.

- You have to select an insurance company that has the most convenient paying terms. This will prevent you from having difficulty on paying for the policy and you will be assured that you can enjoy the benefits the policy gives you without the fear of being blacklisted.

Due to advancement of medical technology (both medicines and medical treatment), curing illnesses or undergoing major surgeries has become very expensive. It is also due to such advancements that people experience longer lives. As you can see, it is very evident that having a health insurance is an investment. Senior Citizens need to attend a lot of medical treatments that is why they most likely are the ones who needs this health insurance.

Medical costs have been increasing at an alarming rate throughout the world. It is becoming hard to avail the best medical attention at this present cost. But our endeavour of never compromising on the quality of medical attention we should get makes us shell out more and more from our pocket. Health insurance thus is a financial risk management tool whereby one is able to minimise the cost of medical attention.

As with any insurance, in Health insurance too one has the insurer and the insured playing their part. While the insured pays premium for the health insurance cover to the insurer; the insurer in return is obliged to pay the medical expenses if the insured gets sick. But there are some diseases for which the insurer is not to pay for the medical expenses. Such diseases that are excluded from the purview of the health insurance should be stated in the policy document.

The following are some of the questions that should be answered by you before choosing a health insurance.

• What does the insurer offer? What would be the monthly premium? Does the premium lessen on taking a group insurance (family insurance) rather than an individual health insurance?

• What does the health insurance cover? Does it cover costs incurred on home care, medical bills with or without prescription, out-of-hospital care etc? Is there a limit on the number of days the insurer will cover the payout for these services?

• Do you have any ailment at present for which you may not be covered with the insurance policy? What is the time period that you have to wait for taking advantage of the insurance cover?

• What are the diseases or incidents for which you cannot claim for the cover?

• What deductible is applicable in that particular health insurance?

• What percentage of the medical expenses you have to shell out from your own pocket?

• What would be total amount of premiums you have to pay during a year to avail that health insurance cover?

• Is there a maximum amount designated by the insurer on the insurance policy after which it would not pay?

• Do you have the freedom of choosing the hospital or doctor of your choice with the health insurance?

• Does the health insurance cover the medical expenses you incur in your travel outside your area or abroad?

• Can I upgrade or downgrade the level of health insurance cover?

If answers to all the above stated questions are satisfactory then only you should go for health or medical insurance of that particular policy.

It is the duty of a welfare state to take care of its citizens and provide all possible support and relief that they may require from time to time. It applies specifically to those who are socially, culturally, linguistically or physically in disadvantageous position. That's the reason why a special allowance is provided to the disabled in many countries across the globe.

Disability Allowance or Disability Living Allowance is a governmental aid provided to those who fall within the category of the disabled as defined under the relevant law. Broadly speaking, one is entitled to a disability allowance if one suffers from any such disability that makes one incapable of taking proper care of oneself. You may also get the benefit if you have serious difficulty in walking.

However, disability allowance is available only for those who are below the age of 65. Those who are above 65, are only entitled to an Attendance Allowance. The allowance is independent of whether or not you work or have any savings or not.

In case one is terminally ill with little expectation of living any longer than six months, there are special rules to ensure that the allowance is processed quickly and without hassles.

Not every one who is disabled gets the same kind of allowance, as it depends on which of the 'components' you are entitled to. There are two components and some may be entitled to one while some for both. If you cannot take due care of yourself and need assistance in it, you are entitled to the 'care component', and if you are unable to walk without help, you are entitled to the 'mobility component'. It is possible, as mentioned earlier, for one to be entitled to both the components, in which case the amount paid is higher. The amount also depends upon the extent to which the disability affects one.

The amount is deposited into any account you wish to use and which provides for it. One may also have it collected by someone else on one's behalf.

It never fails. The dreaded once a year email comes to all employees and is from Human Resources: "Open Enrollment is Here!" screams the subject line. You remember last year as you wearily tried to make sense of the never ending choices between plans. Health insurance doesn't have to be a dirty word! Employers realize that these benefits are of great importance to employees and offer them at a very affordable rate. Presented below are basic concepts of plans and what it ultimately means to you.

HEALTH PLANS -

HMO vs PPO: In an age of acronyms, insurance plans seem to have cornered the market on these catchy abbreviations! Simply speaking, HMO is shortened for "Health Maintenance Organization" plan and PPO stands for "Preferred Provider Organization.

Characterizations of HMO: Typically offers a very low, flat dollar rate for seeing a doctor or having a medical procedure done.

Qualifications for using HMOs: You must choose a doctor from a designated pool of physicians to be your primary care doctor. Your designated doctor must coordinate all care on your behalf such as referring you to designated specialists or scheduling x-rays at a facility, etc.

Pros and Cons OF HMO's: They are very affordable and do not require filing of claim forms. The downside is that you must choose a doctor in a designated pool of other doctors. Your current physician may or may not be offered in this health plan.

Characterizations of PPO: Typically costs more than HMO plans, also usually offers a higher dollar rate for seeing a doctor or having a medical procedure done.

Qualifications for using PPO's: You may use any doctor you wish, although discounts on medical care are offered if you decide to use a doctor within the HMO physician pool.

Pros and Cons of PPO's: You may have to file your own claim forms for each doctor that you see. You may use any doctor or specialist that you wish, but the cost is usually significantly higher than the HMO.

There, that wasn't so bad, was it? We shall continue on looking at the various other types of plans that have gained popularity in recent years.

FLEXIBLE SPENDING ACCOUNTS OR FSA'S/HSA'S (Health Savings Accounts)- FSA's: Your employer may offer these type of "savings accounts" designated solely for the purpose of health care or other IRS approved expenses on a tax free basis.

Characterizations for using FSA/HSA's: Employees may begin contributing a specific dollar amount to these accounts for designated health care expenses. The dollar amounts contributed are deducted from your gross payroll so that taxes are not calculated on that amount. Therefore, you are taxed at a lower rate.

Qualifications for FSA/HSA's: You must calculate your projected health care expenses carefully as an annual figure. Then, a set dollar amount is deducted from your pay in equal increments over the course of the year.

Pros and Cons of FSA/HSA's: Typically, if you fail to use all of the monies that are set aside for healthcare expenses for the year, the employee LOSES that money! According to the IRS, it cannot rollover from year to year. So estimate your expenses very carefully!

One business owner asked me recently, what he can do to lower his rising health care costs and I jokingly replied, "Make your employees run laps around your building." The owner responded by saying, "How many?" That is just one example of the desperate measures small business owners are willing to take to get those health care costs in check.

Not a week goes by where there isn't some article related to the rising health care costs. I don't know the stats off hand, but I'm sure you have read how much of a percentage they have risen year after year. This week I read about how bosses are leading fitness classes at work to get their employees motivated to get in shape. With all the wild solutions suggested for this ongoing problem, one of the few acceptable answers seems to be exercise and wellness. Here are some simple ideas that you, a small business owner, can start to implement to help get those premiums in check. I wasn't too far off with my running laps idea. A lot of businesses will chart out a walk path around or near the office for employees to utilize. They can use the path after work or during the lunch hour and usually the path is designated with markers to indicate distances on the path i.e. ½ mile, 1 mile, etc. It is a great way to show the employees that you, as the small business, care about their health.

Another easy way to help with the employees' overall health is to try and control the nutrition that is around the office. I don't mean telling the employees what to eat, but if you have vending machines, put some healthy choices in those machines. Why put those energy sucking foods in the machines (like chips, cookies, etc.) when you can put choices in there that will help stoke their energy such as fruit. Check with your vending company to see what you can put in there that isn't processed and low in fat. Also, eliminate the "roach coach," or those vending trucks that come to your business with all the unhealthy foods your employees can buy. There rarely is anything good in those trucks.

Buying family health insurance is not easy with all of the medical terminology and insurance lingo that you have to know. If your employer does not provide it for your family or does not provide enough, you need to make sure that you do whatever it takes to learn more about it. Every year, thousands of individuals suffer from poor treatment or very costly medical bills because they do not have any health insurance. If this is you, there are some things that you need to do now so that buying family health insurance is easier.

* Determine Your Needs. Family health insurance needs are very different from an elderly couple and a young family. There is prescription coverage, accident insurance and many specialists that will likely need to be called on. While you may not know what you’ll need for this year in terms of coverage, it is a good thing to look at last year and see what you used. Children often need to be seen yearly by their doctors, require immunizations and often wind up getting hurt. While older individuals may need to consider long term medical care, pain and prescription medications and hospitalization care. Make sure that the health insurance plans you consider cover your needs.

* Get quotes. Don’t just talk to your friend down the block and go with whatever company they use. Get quotes from several insurance companies about what they can offer you specifically. In most cases, you can do this right on the web. Get quotes for a variety of their plans. If you don’t feel comfortable online, give the customer service numbers a call. Most companies are very helpful because they want your business.

Health Savings Accounts are designed to compliment high deductible group and individual insurance policies. Consumers often choose high deductible policies in order to pay a lower premium. The amount saved by purchasing the higher-deductible/lower premium policy is contributed to a HSA account to pay for qualified medical expenses.

Dollars contributed into a HSA by an individual or an employer are considered pre-tax. In this way, a Health Savings Account works much like an Individual Retirement Account. The contributions to a HSA are tax deductible and grow tax deferred. A money market account can be used to safely invest the contributions until they might be needed. (In addition, many plans offer mutual funds as an investment option in order to further increase the value of the account.) Plan owners are not taxed on any interest or fund appreciation in the account as long as funds are used for qualified expenses.

Unused dollars in a HSA plan rollover year to year while the account value increases through tax deferral. The plans are portable, meaning the contributions are not lost should coverage be discontinued with the insurance company. The insured owns all deposits and can name a beneficiary for the proceeds at passing. If funds still remain in the account at age 65, they are usually withdrawn by the owner and taxed as ordinary income. (Once age 65 is reached most consumers discontinue their health insurance plans, opt into Medicare and purchase a Medicare Supplement.)

Eligibility and Contribution Limits

There are a few criteria that must be met in order to participate in a HSA. Namely, individuals or employees must be enrolled in a high deductible health plan. An annual deductible of at least $1,000 for an individual and $2,000 for a family must be selected. In addition, participants must not be enrolled in another qualified high deductible health insurance plan or be enrolled in Medicare.

Contribution limits for 2006 are $2,700 for individuals, $5,250 for families or the amount of the deductible- whichever is less. Contributions are pro-rated based on the calendar year. If enrollment occurs in July, then only 50% of the contribution limit can be deposited in that particular year. The full amount could be contributed the next year.

Health Savings Accounts are designed to be easily maintained and operated. They can be managed online at websites set up by the provider. Additionally, many companies issue checkbooks or credit cards to the insured that draw directly from the HSA funds. In many cases, a high deductible insurance policy coupled with a Health Savings Account will provide more savings to the insured than a traditional insurance plan.

Health insurance is a type of insurance where the insurer pays for the medical expenses of the insured for all cause that were mutually agreed upon. There are different types of insurance plans which cover medical services, prescription drugs, dental expenses, disabilities, etc. Usually, all these types of insurances are together termed as health insurance.

Health insurance plans are usually sold only once and renewed annually. Under most plans, the insurer agrees to pay for all health expenses as long as the insured renews his plan and pays the premium. Health insurance plans are usually of two types. One is the fee for service, while the other is managed care. Under Fee For Service plans, the insurer pays the medical service provider in advance for certain types of services that the insured takes. Under such as scheme, an insurer can go to any medical service provider. On the other hand under managed care the insurer has a set of particular medical service providers only from whom the insured is entitled to take medical advice.

Plans offered by medical insurance companies are lucrative and can tempt anyone to go for a policy. However, there are certain terms and conditions which should be understood fully before going for a policy, failing which, an insured can land into uncomfortable situations.

Deductibles form an important part of insurance. It is the amount which an insured must pay to the insurer to start getting the insurer’s service. Deductibles may vary from a few dollars to a few thousands of dollars, so it is necessary that the insured takes care of his ability to pay before getting insured.

Another thing that often causes misunderstandings is the co-insurance amount. Co-insurance amount is the amount which an insured has to pay to the insurer once the deductibles are reached.

Exclusions are to be specifically checked. There are a number of medical expenses which the insurer won’t be paying. This needs to be understood before claiming insurance.

Insurance definitely has a lot of intricacies involved which makes it a little bit confusing for people who are not acquainted with it. However, it is worth understanding as the time and efforts spend now on understanding health insurance may save your life some day.

Health care insurance is a necessity today. Most educational institutions in the United States require students to be covered for healthcare. Surveys reveal that nearly thirty percent of students in the US do not have healthcare insurance, and ask their parents for financial help when in need. These students are most likely to drop their studies for financial reasons, as they have to work to pay off their dues of healthcare expenses.

Many students find it difficult to meet the costs of healthcare insurance, because it does not come cheap. However, it is advantageous for a student to have this medical insurance.

Although there are many plans offering student health insurance, they can be categorized into three basic types: parent’s health care plan, college health insurance plan, and the commercial health insurance plan. Each of the mentioned plans has their own advantages and disadvantages.

Under the parent’s health care plan, a college student may not be covered, after a certain age. If that is the case, extra coverage called COBRA needs to be obtained, which is not necessarily cheaper than purchasing a different plan altogether. Moreover, it may be a pre-requisite that the student should have at least ‘x’ number of college credit hours to qualify for the coverage.

The college plan can offer coverage through HMO (Health Maintenance Organization), or PPO (Preferred Provider Organization). These are group plans and generally cheaper than commercial health plans. However, the coverage offered may be limited. Other options would have to be explored for coverage that is more comprehensive. The college plan is preferable when there is an ‘on campus’ hospital. Most of the college plans cover all accident or health care expenses, subject to the condition that the student continues to be registered with the college for a particular duration.

Many companies sell commercial health insurance. The terms may differ widely, hence, it would be essential to purchase a plan that offer facilities that one finds suitable. The best way would be to make a list of the features that are important, and then get the details for different plans from various companies, and compare them to decide which plan is the best one.

Under the commercial health plan, there is the temporary student health insurance, which is meant for students staying away from home. It can be availed for periods of thirty days, to six or twelve months. According to the temporary plan, the student can find a doctor or hospital of his choice by taking an Indemnity Plan. Alternatively, he or she may take the Managed Care Plan, which allows a choice of doctors and hospitals that are in the plan’s network. The Managed Care Plan has lower premiums than the Indemnity Plan.

Most states in the US have legal stipulations, which require compulsory health care insurance for foreign students, and set a minimum amount that should be available for emergency evacuation, medical treatment and repatriation of remains, if required. International student medical insurance costs approximately six to seven hundred dollars per annum.

On a chilly afternoon last winter, the atmosphere inside Club USA--one of New York City's hottest nightspots--matched the outdoor temperature, but for a different reason: America's Black supermodels were in revolt. The Black Girls Coalition (BGC), a consortium of fashion models formed in 1988 by supermodel Iman and former model Bethann Hardison (now owner of the modeling agency Bethann Management Co., Inc.) to aid the homeless, had chosen this site for a press conference to speak out on an issue that's been hidden beneath the glamour and glitter of the profession: namely, racism within the fashion and modeling business.

About 20 strong, almost all of BGC's members were in attendance--among them Karen Alexander, Cynthia Bailey, Tyra Banks, Kersti Bowser, Naomi Campbell, Peggy Dillard, Iman, Coco Mitchell, Gail O'Neill, Beverly Peele, Phina, Karla Otis, Akure Wall, Veronica Webb, Roshumba Williams and the designated leader, Bethann Hardison.

Also present were more than 100 members of the press representing Black and White American and European publications, who got an earful from the Black beauties gathered to expose the industry's ugly side. Accustomed to being seen and not heard, the models--who for the most part were stripped of their ready-to-work glamour-girl makeup--nonetheless took their turn at the podium and spoke candidly about the everyday injustices that exist within their "workplace."

Among the specific grievances addressed: the gross underrepresentation of African-Americans in fashion advertising (television commercials, billboards, magazines, catalogs, in-store promotions), designer shows and even the editorial pages of consumer magazines. "People don't realize there are hundreds of jobs related to the fashion industry, from being a makeup artist to scouting locations for a photo shoot," said a Black fashion editor at a women's magazine. "But you can practically count on both hands the number of Blacks who have any of these jobs in what's become a very closed arena." This is despite the fact that collectively African-Americans spend over $16 billion on clothing annually, according to the Consumer Expenditure Survey, and will represent approximately 13 percent of the total population by the year 2000, according to the U. S. Census Bureau.

WHAT PRICE BEAUTY?

As "soldiers" at the forefront of the style wars, the models also expressed outrage at other more subtle but unmistakable signs of racism that exist in their field: everything from the lack of Black behind-the-scenes fashion personnel--art directors, editors, designers, photographers--to being controlled around the clock right down to how they wear their locks, or indeed, told whether or not they can even wear "locks." Many, instead, are forced to wear wigs, falls and weaves.

"In more than ten years as a model," explained Coco Mitchell, "I've always had to look like what other people wanted me to look like, never how I wanted to." Most of the models admitted to being under pressure to have flowing hair that emulates that of the White models. Two have refused to give in to such pressure, however: Roshumba Williams and British-born Phina both wear their hair natural and closely cropped. Phina, in fact, stepped on these shores wearing her hair in spiky twists. "I wear my hair like this because I want to--not because I am militant, as I am so often told," she explains. "I think it's really sad that time and time again I'm asked to adhere to a certain look or value that is justifiable only to certain people." Adds Roshumba, "I'm constantly arriving at a photographer's studio and being told that I have to wear a wig." Roshumba, though, is one of the few Black models who still gets a lot of work while sporting her short natural.

The grievances of the Black models were dramatically supported in a groundbreaking study conducted by the City of New York's Department of Consumer Affairs in 1991. The report, titled "Invisible People," looked at how often Blacks and other ethnic groups were used in magazine and catalog advertising--and the findings were shocking. A paltry 3.4 percent of all consumer-magazine advertisements depicted African-Americans--despite the fact that we comprise approximately 11.3 percent of the readership of all consumer magazines and 12.5 percent of the U. S. population.

In addition to its study, New York City's Department of Consumer Affairs conducted a special survey of repeat advertisers in 634 issues of general-circulation magazines and found that some of the most prolific fashion advertisers rarely, if ever, depict Blacks (or Asian-Americans) in their ads. And when they do, it is usually as stereotypes, not consumers. The companies included Calvin Klein (out of 148 ad insertions reviewed, none depicted "identifiable minorities"), Perry Ellis, Giorgio Armani, Gucci and Guess? by Georges Marciano. In the case of Calvin Klein, one of his ad campaigns in particular--which features White rapper Marky Mark and White model Kate Moss profiling in low-slung, oversize jeans--doesn't exactly have the rap-music community singing "Hip-hop hooray." After all, it was the Black rappers who created--and still perpetuate--the urbanized, flavorized look, yet no major advertising campaigns have come their way.

WHEN IMAN--THE MODEL WHO SMASHED TRADITIONAL NOTIONS of beauty--started out, all sloe eyes and elongated neck, the notion of an African model was so exotic that photographer Peter Beard concocted a story designed to feed right into Western stereotypes of the Dark Continent: He told the press in 1976 that he'd discovered the Somali beauty herding goats. Never mind that she was actually a university student, a middle-class Muslim girl fluent in five languages.

For Ethiopian-born model Liya Kebede, also long of neck and limb, there was no need to hide behind a made-for-Hollywood tale. Instead, hers is a story of slow, hard work. She has the exquisite face that launched a reported $3 million cosmetics ad campaign last year, making her the first woman of African descent to be awarded a highly coveted and lucrative contract with Estee Lauder, one of the world's biggest cosmetics companies. She was picked for her international beauty and, in fashion parlance, "edge"--in other words, to appeal to a larger and younger base of customers who increasingly come in skin tones other than vanilla. Iman agrees: "I think for Liya, things are just beginning, I really do. She is the next Black model to pick up the baton."

Kebede was raised comfortably middle-class in Addis Ababa, the only girl in a family of boys, a tomboy with little interest in the vagaries of fashion--except for that Naomi Campbell poster in her room. She didn't have the attributes that turned heads in Ethiopia: big eyes, curvy figure. But she was tall and thin, and so she figured, why not try modeling?

She endured years of no and maybe as she worked in Paris, Chicago and New York. Along the way, she married her husband, Ethiopian hedge-fund manager Kassy Kebede, a man with whom she was instantly smitten. "We had one and a half dates," Liya says, "and then he had to go away. We were on the phone talking for two months. After that, we were never apart." Finally, in 2000, the fashion world took note of her cool elegance: Designer Tom Ford hired her to walk the runway for his fall 2000 Gucci collection. The door was finally open. And the offers started flying in.

Never mind that she was pregnant with her son, Suhul, now 4. Many thought that the pregnancy would interrupt her success. Kebede wasn't worried. Having a son, she says in her soft-spoken way, keeps her focused on what matters. Fashion is a career. Her family is her life.

Liya Kebede sat down with Iman, now founder and president of IMAN Cosmetics and I-IMAN Makeup, to talk about fashion, family and concepts of beauty. Washington Post reporter Teresa Wiltz facilitated their conversation.

Iman: Tell me the story behind the rise and rise of Liya.

Liya: It started back in Ethiopia with the fashion shows and events like that at school. And then I got passionate about it. Before that I had never really thought about modeling professionally. I thought I could model part-time to pay for school. I worked in Chicago doing catalogs, and there everybody scares you about modeling in New York. They say, "Oh, they're going to eat you "alive." It was very discouraging. But eventually I moved to New York with my husband. Once I got there, it was still a slow process. I mean, it's been about four and a half years now. But I'm working.

Iman: And today you're the new Estee Lauder gift. Big change. You're now a role model. How do you feel about that?

Liya: It's like a dream for me as a model to have a contract. So I'm happy; at the same time, I understand, yes, it's a change for the company, so everybody's looking at me to see how I do. But if I can bring anything positive to the situation, I'm happy to do it. Being part of the image of a major cosmetics company shows others that they can do it, too.

Iman: What about growing up in Ethiopia? What did your girlfriends consider beautiful when you were a teenager?

Liya: First of all, what is seen as beautiful in Ethiopia is totally the opposite of what is beautiful here.

Iman: Were you considered beautiful there? Because now you're known as one of the most beautiful women in the world.

Liya: No. I was the skinny girl and people were saying, "My God, feed

her. Do something." And I was like, "I am eating; leave me alone." The funny thing is that now when I go back, I see all the women, and they're all like, "I want to be skinny." Life changes so quickly.

Iman: I don't look much like the average Somali girls, and they are very beautiful women. They are round girls. And when I go home, I'm celebrated for a day, but they still don't think of me as beautiful, ever. In Somalia they think, If Iman can become a model, any Somali girl can. And they're right. There are many beautiful people there. Truly. What do you miss most about Ethiopia?

Liya: I miss the simplicity of life, the fun. The air I miss. My parents. Everything. The first thing I do when I go back to visit, as soon as I get off the plane, is take a whiff of the air. It's not polluted; it's clean. The grass, the trees, the flowers. And it's like, "Ohhhhh, okay, I'm home."

Supermodel Veronica Webb speaks out on

In the fall of 1994, I shared the cover of YSB with Black male model Clayton Hunter and with Roshumba, who had been featured in the Sports Illustrated swimsuit issue three years in a row. I, like more than a few other Black models, would consider the middle of the decade a prime time for us. Our popularity may have had much to do with a flood of media stories indicating that racial and ethnic groups would outnumber Whites by the middle of the twenty-first century.

The fashion, publishing and advertising worlds--the institutions where our desires and dreams are synthesized and sold back to us--were clearly taking notice and action.

More Black models began to grace the pages of fashion magazines, both in advertisement and editorial layouts, and Naomi Campbell's star was shooting into the stratosphere as she clocked a stunning number of covers. In Milan, where runway-show trends begin (because the first international showings are held there each season), Riccardo Gay Model Management had 12 to 16 Black women on the roster for fashion shows. In fact, every show I worked from 1992 to the first season of 1995 had at least seven or eight Black models. Considering that a show usually features 20 or so models, we had an impressive 35- to 40-percent representation. Things really got exciting in 1995, when Tyson Beckford snagged an exclusive contract as the face for top designer Ralph Lauren. Tyson went on last year to be named Male Model of the Year by VH1.

Fast forward to 1996... When the year came in, we went out. Today there is only one Black female model I know of with a major cosmetics contract: Tyra Banks for Cover Girl. As of this writing, Riccardo Gay in Milan has only six Black models in working rotation. And from the Italian runways to the French fashion scene to the catwalks in New York City, there has been a worldwide trend to exclude Black models from fashion shows. Only a few shows for the fall 1996 season included a Black face, and even then in several cases that face could have been mistaken for White. The result: Magazines and newspapers--many of which use pictures from runway shows throughout the year--will have few chances to include us in their pages. And, as it is, we are seldom the focal point of the main fashion layouts in general-market publications. Clearly the Black model is the subject of a damaging and demeaning "disappearing act."

I don't necessarily cry foul because my livelihood and that of my colleagues are at stake. Some of us have had a pretty lush life because of this profession, and we've gone on to do other meaningful and lucrative things as well, like writing, acting or running our own cosmetics companies. The real crime of our being excluded is that it leaves Black people with far too few self-affirming images in television commercials and other mainstream media.

This is not the first drought for Black models, and though it pains me to say it, it probably won't be the last. Fashion, by its very nature, is fickle. What's in one year is often out the next. I'm outraged, though, that race would be subjected to fashion's whims. I could handle short hair versus long hair, skinny waiflike bodies versus more voluptuous ones, or sassy attitudes versus fresh playfulness, because there would always be a place for some of us. But when what's in is pasty pale and bland blonde, well, enough said.

"Yes, I agree completely that this is a totally blonde season," says Katie Ford, CEO of Ford Models, Inc. "It's a trend started by the minimalist designers like Prada and Gucci. By using models who all have the same coloring, they took the identity out of the model. Their goal was to take the attention off the models and put it back on the clothes. If you were a brunette, it was hard to get on the runway." Think about where that left us as Black models. At least White brunettes could turn to a bottle of peroxide.

Model bookers do the daily work of calling clients and pitching models for jobs. I asked my booker at Ford, Neal Hamil, what the general response to Black women was at the agency last show season. "Clients were saying that they were `going in a different direction." It's the industry's standard brush-off," he says, adding that the look being requested was a "very, very pale, skinny, glassy-eyed look, like a junkie, really." When I asked Neal if he thought the lack of interest in Black models was racially based, he paused and then said, "The discrimination is so subtle that I don't realize it until the season's over."

Ford says she has consistently found it difficult to start and maintain models of color. "I continue to take Blacks, Asians and Latinas in hopes that things will change. But I know it's always going to be twice the work for half the reward."

Even Naomi--who in many fall 1996 shows from Europe to New York was the only Black model on the runway--concedes that any model of color has to work that much harder. "But I love rising to the challenge," she says. Much controversy surrounded Naomi's appearance in the May 1996 issue of Vogue. According to reports in the press, Campbell had been promised the front cover of the issue. But for the first time in the magazine's history, Vogue printed a double cover, with White supermodel Niki Taylor on the cover facing the newsstand and the world, while our Naomi was tucked away on the inside fold. Campbell took the high road concerning the incident. "Personally, I was a bit disappointed, but I hope the magazine will [regularly] regard Black models as cover subjects the way they do Whites," she says.