Most likely if you are covered by a health insurance plan it is one that is offered through your employer. But what if your employer doesn’t offer it, you don’t qualify for the plan due to work hours and other specifications or you just can’t afford the health coverage that is offered? According to the US Census Bureau’s 2003 report about 15% of the population is without some form of healthcare insurance.
What are your options for healthcare coverage? There are options out there that will vary on your needs and ability to afford the policies and premiums but before we discuss those let us address a commonly asked question. Why do you need health insurance? Health care costs are high, and are getting higher each year. If you are in a serious accident or have to deal with an illness that is beyond the scope of just a visit to the doctor’s office who will pay the hospital and doctor bills? Can you afford to pay them on your own? Heath care coverage is there to protect you and your family against medical bills that are very expensive and beyond your ability to pay for yourself.
There is no way to predict what your health care costs will be and that is where insurance plays a big part. You might be looking at medical bills that rarely go over a couple of hundred dollars in one year to medical costs that can reach thousands of dollars in a matter of days. Even if you have never gotten sick before and are at the peak of health and physical strength, that can all change in the blink of an eye. Health care insurance is there to help you when the unexpected occurs.
If you have health coverage or insurance through an employer that coverage is referred to as group insurance. Group insurance is generally the least expensive. This is attributed to the fact that most employers pay part or all of the cost of premiums for your health care policy. Sometimes you are offered a choice in health care coverage and that can determine your amount of out-of-pocket expense. These different types of medical plans are HMO and PPO, for example. When you leave your current job your insurance will end, although you can extend it through a federally mandated program called COBRA insurance. This medical coverage can only be extended for 18 months and is extremely expensive.If you don’t have an option for insurance through your employer you will need to shop for individual coverage. You can find many different companies that offer insurance but you need to research them carefully to find out if they are renewable, what they will and will not cover and under what conditions they can cancel your health care policy. You can call insurance companies directly or go through an insurance agent. Check with the agent who already covers your home or auto insurance policies. Here are some tips in how to shop for individual insurance for health care:
- Policies vary widely in coverage and cost so shop wisely. Contact more than one insurance company so you can compare.
- Make sure the policies cover you for large medical costs or catastrophic health care.
- Read and fully understand the policy. Get help from someone and ask questions if you don’t understand any part of it. Make sure it provides the type of insurance coverage you are looking for.
- The policy should state: the date the policy will take effect (some have waiting periods) and what exactly is covered or excluded. Check for any pre-existing medical conditions clause.
- Check for a ‘free look’ clause. This allows you to ‘test drive’ the policy for at least 10 days. You can cancel and receive a refund if you find the medical plan is not right for you.
- Steer clear of single disease plans such as cancer plans. This will usually be covered by your regular health plan and so there is no reason to pay extra for another plan. Check to see if you need this extra protection due to any exclusion in your regular health care policy.
