Let’s cut through the confusion
Big business often hides simple reality behind small print and complicated language. You only have to look at the average insurance policy to see this at work. In one sense, this may not matter quite so much when you are insuring your vehicle. There are only a few things that can go wrong and you should be able to see what’s going on. But health insurance is a whole different ball game.
The stakes are that much higher when you are looking to protect not only yourself but also your family. Worse, the ways in which the coverage is defined are often written using jargon and uncommon words, making it all so much more difficult to understand. Unfortunately, there’s not enough space here to explain everything, but this is a simple introduction to the main things you need to know. This site offers you a free service to get multiple health insurance quotes from local insurance companies. Remember, coverage and premiums vary significantly between companies.
The service offered by this site is completely free. You can run the search as many times as you want to get comparative quotes. It will not cost you a dime. And no matter how many tempting quotes you may see, there’s no obligation to buy. This is like window shopping. All the heath insurance quotes are just useful information about what’s available and how much it might cost. Then it’s up to you to start reading through the different policies and deciding which offer a reasonable coverage at an affordable premium. Only by comparing and contrasting can you find the best value-for-your-dollar policy.
What exactly is being quoted?The answer is simple. The insurance companies replying to your questionnaire will quote for policies described as individual, personal, family or private health insurance. So the policy will either just be for you or it will include family members — usually your spouse and children only.
When are you looking for a policy?Employers can offer health benefits as a group plan to their employees. This has been growing increasingly expensive over the last few years and many employers have been cutting back, particularly as the recession is hitting revenue. So you will be looking for your own policy when:
- you are self-employed;
- your employer does not offer health coverage;
- you are unemployed and outside the COBRA scheme; or
- you are a student.
The age range for cover starts at birth and ends at the age of sixty-five when retirees fall under the Medicare scheme and must surrender their individual policy.
Are individual policies different?Every state has its own set of rules and regulations so there are minor differences between all the main classes of policy as you cross state lines. Further, all the companies are in competition with each other so they write slightly different policies with features they hope will attract more business.
The main difference between group and individual policies is that the majority of insurers accept people into group cover with pre-existing conditions. But if you have an existing condition as a private individual, acceptance by insurers is usually conditional. There may be a waiting period to see whether your condition worsens or the cover offered may exclude payment for treatment related to your condition. Some states have tried to restrict the right of insurers to discriminate against those with a pre-existing condition, but insurers react by refusing all cover to those with any disability.
Before you start looking for a policy, spend time reading through the information on the website run by your state’s insurance department or commissioner. This will give you guidance on what regulations are in place and what is available.
How much should you expect to pay?Insurance companies assess your risk profile by looking at your age, gender, current health status and lifestyle. The zip code and other factors may be added in when they appear to affect the risk. So those of you who smoke or are overweight will pay more than those with a healthier lifestyle. Equally, some parts of the country have higher rates of claim for illnesses. There are no hard and fast rules about how much you will pay. All that can be said is that the rates are always lower for younger people with a good health record and a healthy lifestyle.
What are the main types of policy?There’s a simple rule. The more freedom you want to choose the doctor and the hospital for treatment, the higher the premium will be. So ask the sales agent for each company to quote separately for indemnity, HMO (Health Maintenance Organisation), PPO (Preferred Provider Organization), POS (Point of Service Plan), etc. That way, you can quickly see which plan represents the best value for yourself or your family.
