Due to the high cost of health care services these days, many health consumers are seeking low-cost health insurance plans, which provide affordable alternatives to traditional health care plans. In addition to low-cost individual and family health insurance plans, in some states, low-cost group health insurance plans are becoming available to companies that employ at least 2 but fewer than 50 workers.
Types
There are several types of health insurance for families and individuals. Fee-for-service plans require that the insured pay an annual deductible before the insurer begins to pay any costs for medical services received. Most plans also require a co-payment of 20 percent. In some cases, the insured person actually pays more, as the insurance company's share is based on 80 percent of the standard fee charged for a particular medical service. While these plans offer the most flexibility, they normally cost more. When it comes to managed care plans, HMOs cost less than PPOs, but there are usually more restrictions on services. There are no deductibles for HMOs, and co-payments are lower. However, a person enrolled in an HMO may only receive medical care from a network physician. High deductible plans may be a less costly option for individuals who are basically healthy. Limited benefit programs are another low-cost alternative, but they provide fewer benefits.State programs may be a possibility for individuals and families who meet eligibility requirements.
Considerations
Keep in mind that not all insurance companies will cover a stay at any hospital. You also need to find out whether your doctor is a member of that particular network. Not all medical services may be covered either. Do your research. Find out what a plan covers. Costs may be similar, but different plans may not offer the same health care services. Many do not cover maternity care or mental health services. Low-cost health insurance companies also tend to have more rigid underwriting guidelines, generally excluding more pre-existing conditions and diseases. Don't be afraid to shop around. Some companies will accept pre-existing health conditions that other companies' plans reject.
Warning
The fees charged by some providers can be much higher than those charged by other health care professionals in the same area. In cases like these, the health care consumer is responsible for paying the difference out-of-pocket. More insured individuals are finding themselves paying larger portions of their medical bills.
Benefits
The major advantage of purchasing low-cost health insurance is that individuals are able to get basic health care coverage that they can afford. Likewise, small employers offering health care coverage to employees can benefit as well. While most group health insurance plans require that an employer's contribution be at least 50 percent of the premium cost, low-cost small group health insurance plans may only request employers to pay as little as 25 percent, reducing the overall cost of employer paid benefits. Another advantage to small companies purchasing these plans is that only 60 percent of eligible employees need to enroll in the plan, rather than the 75 percent participation rate required by most group health insurance plans.
Prevention/Solution
Because unexpected medical bills can devastate a family's finances, more than half of the nation's states offer health insurance plans to lower income individuals and families at minimal premiums. Most of these plans are designed to provide basic medical care including hospital stays and surgery. One drawback is that low-cost health insurance plans that have low premiums have high deductibles, as opposed to plans for which people pay higher premiums but lower deductibles.
Expert Insight
Health insurance experts recommend comparing the prices of several insurance companies when shopping for a health insurance plan. Get price quotes from individual companies and then consider the benefits offered by each plan. Decide which plan will be the most affordable, yet meet you and your family's current health care needs.
Misconceptions
Despite a common belief that it costs more to purchase an individual insurance plan than it does to enroll in a group health plan, the fact is that the premiums for individual health insurance can be much lower. Because applicants with pre-existing conditions can be turned away, healthy applicants who are accepted pay much less.
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