The United States government is offering several schemes and plans to help US residents enjoy health insurance benefits to the fullest. “Obamacare” is a scheme that provides health insurance facilities for both high income and low income groups in the US. However, a report from a Washington D.C. firm called Avalere Health suggests that the cost of one of Obamacare’s plans, called the Silver plan, will increase by about 34% in 2018. The Silver plan offers a good coverage policy and is slightly higher on the monthly premium. For those who cannot afford to pay such high premiums; They need not worry, as apart from this there are policies and a subsidy scheme, which will provide health insurance But Less cost.
while shopping affordable health insurance plans, One should have good knowledge about health insurance policies. Shelby George, senior vice president of advisory services at Manning & Napier, advises buyers to always look at how much coverage is provided by the company for the costs involved. In other words, one should not be fooled by cheap rates, but rather pay attention to how much coverage insurance companies are providing for the cheap rates that they advertise.
in order to get cheapest health insurance, Here’s an explanation of the different policies available and details on whether one can get “free” insurance.
Subsidy and other health insurance schemes:
The ‘subsidy’ is one of the many useful schemes offered by the government, with the aim of providing health insurance coverage to all Americans. Subsidy, in simple words, is the amount paid by the government to insurance companies for providing health insurance facilities to low-income people. This means that people falling in the low-income group will be able to enjoy health insurance benefits through access to subsidies, which would otherwise be rejected by insurance companies on any other short-term policy claim.
An individual earning approximately $48,000 and a family of 4 earning less than approximately $98,000 can avail of the subsidy. Hence, low income people can enjoy good cheap health insurance with the help of subsidy. However, these subsidy plans are more likely to be replaced or eliminated entirely by the Trump administration than those proposed by the Obamacare plan.
Talking about other health insurance plans, a silver plan will cover up to 70% of an individual’s health care charges while a bronze plan will cover up to 60% of the cost and the remaining charges will have to be paid by the individual out of pocket. Now, comparing these two plans, if one does not want to spend absolutely no money from their pocket, then choosing the Bronze plan with subsidy would be of great help. For those who cannot pay from their pocket, a Bronze plan coverage of 60% along with the remaining 40% covered by subsidy will help them enjoy Cheap Health Insurance.
What type of policy can one choose?
first step to catch cheapest health insurance One has to be aware of which policy suits one’s needs. Here is a list of the two options explained in brief, so that one can choose the most suitable one.
1. Short Term Policy: Short term policy is for those who are not eligible to avail subsidy. In other words, people for whom health insurance becomes ‘unaffordable’ are advised to opt for this policy. The term ‘unaffordable’ here is described as a cost that exceeds 8% of an individual’s or household’s annual income. According to Nate Purpura, vice president of consumer affairs (ehealth.com), short-term policies should be considered by individuals with incomes between $49,000 and $69,000 and households that make between $99,000 and $129,000.
Hence, if one finds it difficult to pay the expensive premiums and get health insurance, then taking a short term policy is highly recommended. However, there is no penalty if one does not want to have health insurance. But, a positive thing is that it is beneficial for the individuals themselves, if they have some financial security which will be beneficial in adverse situations.
Here are some notable details about short-term policies:
- These policies generally last for 3 months and can be extended up to 9 months (renewal at 3 month intervals).
- According to new rules proposed by President Trump, it will be mandatory for all individuals to have a short-term policy. However, this rule has not been passed yet but will come into force soon.
- These policies do not provide coverage for pre-existing diseases, ie diseases that one is suffering from before applying for the policy.
- If one wants to include such pre-existing diseases in the coverage plan, then the premium will increase significantly.
- Unlike Obamacare plans, short-term policies will not cover maternal care, injuries due to abuse, and fees for mental health treatment.
- With a short term policy, one can avail good health care facilities at a premium of around $100 per month.
Despite offering fewer coverage options, on an overall basis, for those who are looking for cheap health insurance for individuals Or Affordable health insurance for families, You can avail great benefits from this policy.
2. Combined Policy or Combination of Policies:
Traditional policies or in other words high premium plans will provide coverage for all the costly hospital bills in case of risky illnesses or accidents. Whereas, choosing short-term plans will cover routine doctor-visits. But if one wants to avail the benefits of both the policies, i.e. to get coverage for risky diseases as well as common or routine ailments (like cough, cold, fever), insurance companies these days are offering combo packages.
In the recent past, people used to apply for both the policies separately to get coverage in both the cases. This made it difficult for insurers to calculate the various percentages and amounts; Hence came the scheme of combo policies, allowing people to get both the benefits in a single policy. However, as it seems obvious, opting for these policies will certainly result in one paying higher premiums than usual.
So the gist of all the points discussed above is that one should not always be attracted by offers that only advertise to provide affordable health insurance for individuals, Instead one should look at the quality of coverage provided for the affordable insurance rates. Shopping for health insurance, like any other insurance policies, requires thorough research and study. Since it is an issue related to one’s health; It is not fair to worry only about money. Quality service always comes at a cost so one should be wise enough to search for policies that provide affordable and quality health insurance plans.
