For most individuals, the most affordable health insurance is group health insurance. This is insurance that is group health insurance is available through an employer or other organization. Unfortunately, for those individuals who are self employed or unemployed, affordable insurance is harder to find, especially if you have a preexisting condition or need regular care for some reason.
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Medical costs are increasing, which results in health insurance costs rising as well. This means that you will be paying more for less benefits and will more than likely pay more out of pocket when you do need to go to the doctor. There are some affordable health insurance plans available but you need to be aware what you are getting from the plans.
Group Health Insurance
Why is group health insurance the most affordable? Group insurance plans are usually the most affordable because instead of rating your premiums based on one person’s health history, the risk is spread over a large group of people. This means that even if you have a lot of medical issues your health insurance premium will be a lot lower than if you got individual insurance.
For most group health insurance plans, the employer pays for a portion of the premiums. Some even pay for 100% of them, although this situation is getting rarer due to the higher costs involved. Because you as the employee are only responsible for a portion of the premium, it ends up being the most affordable choice for you.
The health insurance policies under group plans usually offer better benefits, as well. Your deductible is often pretty low and you are covered for more procedures and illnesses even if you have a health condition that is preexisting. This along with the affordability makes group insurance your best choice if available.
Not Eligible For Group Health Insurance
What if you are not eligible for group health insurance? If you are in a situation in which group health insurance is not an option, there are other options but they are not as ideal.
If you were recently laid off, you may have Cobra as an option. This gives you the opportunity to continue on your former employer’s group plan for a certain amount of time.
You are responsible for 100% of the premium, so it is very expensive, but you get to keep the better benefits.
For others, individual health insurance is the only option. In order to find affordable independent insurance, you will need to make some sacrifices in regards to your coverage. The most affordable health insurance plans are usually major medical or essential plans. These usually have high deductibles associated with them.
If you cannot afford individual health insurance, there are government sponsored programs that you may be eligible for. For all of the different types of health insurance, visit the Insurance Information Institute’s website.
Health Insurance Premiums
Will your choice of health insurance companies affect your premiums? There are many health insurance companies out there. Many of them advertise cheap, affordable health insurance. Who you choose for your insurance needs may very well affect how much you pay but you want to be careful and do your research.
Often the plans are cheap because they don’t offer any benefits that you can use so you are basically paying for something that is a waste. Other plans may offer affordable premiums but their premiums increase every couple of months so that at the end of the year, it no longer affordable. Always choose a plan that guarantees that your rates won’t increase for the period of 12 months.
Some companies may offer affordable plans but they are not very financially stable. This means that they may have trouble paying for claims and they will do everything they can to deny your claims. There is also the chance that they won’t be able to stay in business and you will have to find another insurance company.
A good way to see what the financial picture of an insurance company is through one of the insurance rating companies. A good one is A. M. Best. The website shows you how much money the health insurance companies have in assets, their current financial rating, and their future outlook. Always choose a health insurance company that has a good to excellent financial rating.
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