The United States government has introduced several projects and plans to help American residents take full advantage of the benefits of health insurance. “Obamacare” is one such plan that provides health insurance facilities for both high and low-income groups in America. However, a report from a Washington D.C. company called Avalere Health reveals that the price of one of the Obamacare plans, called the silver plan, will increase by about 34% in 2018. The silver plan offers a decent coverage policy and the monthly premiums are a bit high. Those who cannot afford to pay such high premiums need not worry, as there are other plans and a subsidy system that will provide low-cost health insurance. Finding cheap health insurance plans requires a good knowledge of health insurance policies. You should always look for what coverage is provided for the costs a company offers. In other words, don’t get caught up in cheap rates, but instead focus on the coverage insurance companies provide for the cheap rates they advertise. In order to get the best cheap health insurance, here is an explanation of the different policies available and a description of how to get “free” insurance. Subsidies and other health insurance plans: In an effort to provide all Americans with health insurance coverage, one of the many helpful plans offered by the government is “subsidies.” A subsidy, in simple terms, is the amount paid by the government to insurance companies to provide health insurance facilities to low-income people. This means that people in the low-income group will be able to get health insurance benefits because of the subsidies, whereas they would otherwise be rejected by insurance companies for any other short-term insurance applications. A person earning about $48,000 and a family of 4, earning less than $98,000, are the ones who can get the benefits of the subsidies. Therefore, low-income people can get cheap health insurance through subsidies. However, these subsidies proposed by the Obamacare plan are more likely to be changed or eliminated overall by the Trump administration. In terms of other health insurance plans, a silver plan will cover up to 70% of a person’s health care costs, while a bronze plan will cover up to 60% of the costs and the remaining percentage of costs will have to be paid out of pocket. Comparing these two plans, if one wishes to spend absolutely NO money out of pocket, then choosing a bronze plan with a subsidy will be a great help. For those who cannot afford to pay out of pocket, the bronze plan coverage of 60% and the remaining 40% covered by subsidies will provide cheap health insurance. What type of policy can you choose? The first step to getting the best cheap health insurance is to know which policy is right for your needs. Here is a list of two options explained briefly, so that you can choose the one that suits you best.
1. Short Term Policy
A short-term policy is for people who do not qualify for subsidies. In other words, people for whom it becomes “unaffordable” to obtain health insurance are encouraged to choose this policy. The term “unaffordable” refers to a cost of more than 8 percent of an individual or family’s annual income. According to Nate Purpura, vice president of consumer affairs (ehealth.com), individuals with incomes between $49,000 and $69,000 and families earning between $99,000 and $129,000 are expected to opt for short-term policies. Therefore, if it is difficult to pay high premiums and get health insurance, it is highly recommended to buy a short-term policy. However, there are no penalties if one does not wish to have health insurance. But, on a positive note, it is beneficial for the individuals themselves, if they have some financial protection that will come in handy in adverse circumstances.
Here are some important details about short-term policies:
These policies typically last up to 3 months and can be extended up to 9 months (renewing in 3 month periods).
Under President Trump’s proposed new rules, having a short-term policy will be mandatory for all individuals. However, this rule has not yet been passed but will be in effect soon.
These policies do not cover pre-existing conditions, which are conditions one has before applying for the policy.
If one wishes to include these pre-existing conditions in the coverage plan, the premiums will increase significantly.
Unlike Obamacare plans, short-term policies will not cover maternal care expenses, abuse injuries, and mental health treatment.
With a short-term policy, it is possible to have decent health care facilities for a premium of about $100 per month.
Overall, despite the low coverage options it offers, those looking for cheap health insurance for individuals or cheap health insurance for families can benefit greatly from this policy.
2. Combination policy or combination of policies
Traditional policies or in other words plans with higher premiums will provide coverage for all expensive hospital bills in case of risky illnesses or accidents. In contrast, short-term policies simply cover normal doctor visits. But if you want the benefits of both policies, i.e., coverage for risky illnesses as well as normal or routine illnesses (such as coughs, colds, fevers), insurance companies now offer combination plans.
In the recent past, people used to apply for both policies separately in order to get coverage for both. This made it difficult for insurers to calculate the different percentages and amounts, so the combined policies project was born, allowing people to get both benefits in one policy. However, as obvious as it may seem, buying these policies will certainly result in paying higher premiums than usual.
So, the gist of all the points discussed above is that one should not always be attracted to offers that simply advertise cheap health insurance for individuals, but rather look at the quality of the coverage they provide for cheap insurance rates. Buying health insurance also requires thorough research and study, just like any other insurance policy. Since this is a matter concerning a person’s health, it is not helpful to be concerned only about money. Quality service always pays off, so one should be wise enough to look for policies that provide affordable and quality health insurance plans.