Deciding On Affordable Health Coverage

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Deciding On Affordable Health Coverage

Insurance Personal Finance Author: Admin


Along with the recent passage of U.S. legislation supporting health coverage for most Americans, public interest in getting affordable health coverage has increased considerably.

This is especially true among those individuals who were formerly uninsured against the costs associated with many health issues for which increasingly expensive conventional medical treatment is often recommended.

Some people looking for affordable health coverage turn to obtaining very low-cost health insurance plans that can cost as little as $10 per week. Nevertheless, these plans often either do not cover health conditions that are very expensive to treat, or they have very high deductibles that make such policies seem more like disaster insurance when it comes to your health.

Consider Whether Group or Government Health Coverage is an Option for You

For those who wish to find their own affordable health insurance along more conventional coverage lines, the first thing to consider is whether you might qualify for a group insurance plan.

This is because group plans are generally considerably cheaper to participate in than individual forms of health care coverage.

Most group health coverage plans are obtained by working for a company or by being a member of a trade union. Nevertheless, some insurers will provide group coverage for as few as five individuals, so even if you are self-employed, you might still be able to form a group with some other interested individuals.

Furthermore, several government health coverage options such as Medicare and Medicaid, as well as Workers Compensation can help you cut health coverage costs.

Also, if you have recently become unemployed, then the Consolidated Omnibus Budget Reconciliation Act (COBRA) can allow you to continue your previous employee health plan.

Finding Your Own Affordable Health Coverage

If you fail to qualify for a group or government health plan and need to purchase individual coverage, then getting affordable health insurance is typically harder and involves forgoing some benefits.

The main disadvantage is that individual coverage costs more than group coverage. Also, health insurance policy deductibles and costs tend to increase with age due to the higher risk of developing an illness. Furthermore, those individuals with existing health conditions will usually pay higher health coverage premiums.

Some individuals looking for affordable health coverage turn to managed health plans like the Health Maintenance Organizations (HMOs) that have a doctor network. As an alternative, some people looking for affordable health coverage prefer a Preferred Provider Organization (PPO), since they allow you to use your personal doctor.

Additional Ways of Making Health Coverage More Affordable

Some additional useful tips for getting affordable health coverage can include the following:

  • Forming a small group to purchase health coverage together can cut costs if you do not currently qualify for cheaper group health coverage.
  • Cutting out any unnecessary policy features or coverage types that your insurer will permit can make health coverage considerably more affordable.
  • Increasing your deductible can reduce health coverage premium costs and might make sense if you are presently feeling healthy.
  • Purchasing personal health coverage while you feel well often makes sense since such policies are guaranteed to be renewable. Coverage will cost substantially more if you try to purchase one when suffering from a serious health problem.

Overall, taking the time to research how to go about getting your own affordable health coverage to meet your needs can save you considerable money in the long run.