Cheap individual health insurance companies actually do exist. These companies survive and thrive because they have found ways to limit the risk they take on. Consumers need to understand how cheap individual health insurance companies work so that they can make sure they obtain the most appropriate coverage possible.
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Cheap health insurance companies often have very strict underwriting guidelines, ensuring that their policies are only available to those who are healthiest. If their cheap rates only apply to a handpicked portion of the population, it is easy for these health insurance companies to limit their risk.
Many affordable individual health insurance companies also exclude coverage for a variety of conditions. Often these include preexisting conditions, mental health coverage and even maternity coverage.
What should I look out for with affordable individual health insurance plans?
If you are in the market to save on your individual health insurance, be wary of a variety of things. Not all individual health insurance policies and not all insurance companies are created equally. Take the time to read the fine print and check out the financial health and ratings of the companies before committing to a policy.
Look for the limits and the exclusions on a policy that you are considering. What are the annual limits? Are there exclusions on things you are likely to need?
Make sure that the network providers are convenient to you and are ones you would actually use. If you have to pay higher amounts for out of network care, your good deal on health insurance will not be such a good deal in the long term.
While annual limits are being phased out nationwide, they still exist. Often, cheap individual health insurance companies still use them to limit their own liability. Know the annual limit and be sure you are comfortable with it before taking out a policy.
You should also be aware of the financial stability of the company. Sometimes a great deal on individual health insurance may come from a company that has a very poor outlook for the future. What happens if your health insurance company goes out of business just when you need it to cover your health care costs?
In order to prevent getting a policy with a company that has a poor financial forecast, get the company’s health insurance rating first. A company like A.M. Best, one of the independent insurance ratings companies, can provide you with a summary of how financially stable any insurer is.
What are some ways to help lower the cost of individual health insurance?
There are a variety of ways to help lower the cost of your individual health insurance coverage. In fact, you can often lower the premium you pay without compromising coverage.
The best way to help you lower your individual health insurance cost is to shop around for it and compare a variety of quotes for the best coverage at the best price. You should get as many quotes as possible and compare the policy each is offering, the company itself and the premium.
Opt for higher deductibles and a higher coinsurance rate on any policy you take out. When you take on more of the risk involved in your own insurance coverage, you keep the premium on your policy down.
Choosing certain types of health insurance plans over others will help you keep your individual health insurance cost down. By opting for catastrophic coverage instead of a plan that covers regular doctor visits and preventative care, you can significantly save on premiums and still have the coverage needed for serious illness or injury.
Consider using a HSA or a Health Savings Account. It allows you to save significantly on the cost of your health insurance because it allows you to put aside pre-tax dollars to use on eligible health care expenses.
The tax advantages of this type of account allow you to save on your overall health care budget, even though it does not affect the premium of your insurance policy. To help you learn more about choosing the right plan to meet your needs, consult the Insurance Information Institute.
What is the best way to find cheap individual health insurance coverage?
The best way to find cheap health insurance coverage is to shop online for coverage. You can get a variety of quotes from different insurance companies simultaneously. In fact an online quote tool allows you to input your information just once and then does all the work for you.
Once you have gotten your quotes, you simply need to compare the premium, the company’s reputation for customer service and its financial stability in order to choose the best one for you.
Get started on finding the rates you need for your individual health insurance coverage by plugging your ZIP code into the FREE online quote tool on this page!