How to Get  Cheap Health Insurance Plan?

 

The United States Government has proposed a number of schemes and plans to assist American residents in receiving the most out of their health insurance benefits. "Obamacare" is one such scheme that provides health insurance to both high-income and low-income Americans. However, according to a report from the Washington, D.C.-based firm Avalere Health, the price for one of Obamacare's plans, known as the silver plan, will rise by approximately 34% in 2018. The silver plan offers adequate coverage but has somewhat high monthly premiums. Those who cannot afford such high premiums should not be concerned, as there are other policies and a subsidy scheme that will provide health insurance at a low cost.

When looking for low-cost health insurance plans, one should be well-versed in health insurance policies. Shelby George, Senior Vice President of Advisor Services at Manning & Napier, advises shoppers to always look for how much coverage is provided for the costs a company offers. In other words, instead of getting carried away by the low rates, consider how much coverage the insurance companies provide for the low rates they advertise.

Here is an explanation of the various policies available and a description of whether one can get insurance for "free" in order to get the best cheap health insurance.

Subsidies and other types of health insurance:

With an aim to provide all Americans with Health Insurance coverage, one of the many useful plans proposed by the Government, is that of 'subsidies'. In simple terms, a subsidy is the amount paid by the government to insurance companies to provide health insurance to those with low incomes. This means that low-income individuals will be able to obtain health insurance benefits through the use of subsidies that would otherwise be denied by insurance companies on any other short-term policy claim.

Subsidies are available to individuals earning around $48,000 per year and families earning less than $98,000 per year. As a result, people with low incomes can get good cheap health insurance thanks to government subsidies. However, the Trump administration is more likely to change or eliminate the Obamacare subsidy schemes in their entirety.

In terms of other health insurance plans, a silver plan will cover up to 70% of a person's health care costs, whereas a bronze plan will cover up to 60% of the costs, with the remaining percentage of charges being paid out of pocket. When comparing these two plans, if you want to spend absolutely no money out of your own pocket, choosing a bronze plan with a subsidy will be extremely beneficial. Those who cannot afford to pay out of their own pockets will benefit from the bronze plan coverage of 60%, with the remaining 40% covered by subsidies.

What Kinds of Policies Are Available?

The first step in obtaining the best cheap health insurance is to determine which policy best meets one's needs. Here is a list of two options, each briefly explained, from which one can select the best fit.

1.      Short-Term Policy: A short-term policy is for people who do not qualify for government assistance. In other words, people who find it 'unaffordable' to obtain health insurance should opt for this policy. The term 'unaffordable' is defined here as a cost that exceeds 8% of an individual's or family's annual income. Individuals with incomes ranging from $49,000 to $69,000, and families with incomes ranging from $99,000 to $129,000, should opt for short-term policies, according to Nate Purpura, Vice President of Consumer Affairs (ehealth.com).

 

As a result, if paying high premiums for health insurance is difficult, opting for a short-term policy is highly recommended. There are, however, no penalties for not having health insurance. On the bright side, it is advantageous for individuals to have some financial protection that will be useful in unfavourable circumstances.

Here are a few interesting facts about short-term policies:

• These policies typically last three months but can be extended to nine months (in 3-month period renewal).

• Under President Trump's proposed new rules, all individuals will be required to have a short-term policy. This rule, however, has not yet been passed but will be implemented soon.

• These policies do not cover pre-existing illnesses, which are diseases that a person has before applying for the policy.

If one wishes to include such pre-existing illnesses in the coverage plan, the premiums will skyrocket.

• Unlike Obamacare, short-term policies will not cover costs for maternal care, abuse-related injuries, or mental health treatment.

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With a short-term policy, one can get decent health care for less than $100 per month.

Overall, despite the limited coverage options, those looking for cheap health insurance for individuals or cheap health insurance for families can reap significant benefits from this policy.

 

2.      Combined Policy or Policy Combination: Traditional policies, or plans with higher premiums, will cover all expensive hospital bills in the event of risky illnesses or accidents. Short-term plans, on the other hand, will only cover routine doctor visits. However, if you want to get the benefits of both policies, i.e. coverage for risky illnesses

as well as normal or routine sickness (like a cough, cold, or fever), insurance companies now offer combo packages.

 

Previously, people had to apply for both policies separately in order to be covered in both cases. As it became more difficult for insurers to calculate different percentages and amounts, a plan for combo policies was developed, allowing people to obtain both benefits within a single policy. However, as obvious as it may appear, opting for these policies will undoubtedly result in higher premiums than usual.

So the gist of all of the above-mentioned points is that one should not always be drawn in by offers that merely advertise providing cheap health insurance for individuals, but rather look for the quality of coverage they provide for the low insurance rates. Health insurance, like any other insurance policy, necessitates extensive research and investigation. It is not appropriate to be concerned about money when dealing with a health issue. Quality service always comes at a cost, so it is prudent to look for policies that offer both affordable and high-quality health insurance plans.

 Author: RabnawazToor