Articles by Uma A Ilango

It is natural for us to try to save when we can so that we can spend on what we want to. However, is it wise to try and save on health insurance by going for the low cost ones? Let us look further into the truth about low cost health insurance.

Need For Health Insurance

The average cost of hospitalization and treatment has been escalating. In order to help you survive through the colossal medical bills shoved your way in times of emergencies, you need health insurance. Nevertheless, with the cost of basic necessities increasing at a more rapid pace than our salaries, it can be quite challenging to put aside money to invest in health insurances. It is a fact that about 40 million people in America do not have health insurance. While some choose not to take up health insurance simply because they do not understand the importance of it, most others do not have health insurance because they cannot afford it.

Low Cost Health Insurance

All is not lost and there is still hope. There are low cost health insurance policies in the market for people with tight budgets. With more low cost health insurance providers entering the market every day, finding one that suits your needs and budget may not be impossible. However, you must be willing to do much research on the policies before settling on one.

Managed Care Health Insurance

Managed care health insurance is usually the preferred type of low cost health insurance. There are three kinds of managed care plans. They are Health Maintenance Organization (HMO), Preferred Provider Organization (PPO) and Point Of Service (POS). The common believe is that low cost health insurances are a waste of money as they do not provide much cover at all. On the contrary, low cost health insurances such as HMO plans are not only cheap but they also provide quite a comprehensive cover. They even require minimal paperwork when making claims. POS plans even offer preventive care and well-being services such as discounts on health club memberships on top of being low cost health insurances. The main disadvantage of having a low cost health insurance is the fact that you cannot go to a doctor of your choice. The doctor you go to must belong to the network of your plan.

A Well-Informed Choice Of A Low Cost Health Insurance Is Beneficial To Those With Tight Budget

If your financial situation permits, it would always be better to go for a more comprehensive cover and one that allows you more control over the choice of your doctor. However, if you are one of those with limited financial resources, you do not have to fear low cost health insurance. They are beneficial and you can get good deals which are affordable and yet provide good cover. It is smarter to have a basic health insurance than to have none at all. Having a low cost health insurance can be a wise choice if it had been properly researched and selected based on your needs.

Who Needs Short Term Health Insurance Plans?

Having one offers you peace of mind and ease of pocket by giving you protection against large medical bills. If you ever require medical care, these companies will share the burden of the medical bills with you. It is almost a necessity now with the ever-increasing cost of medical care and medications.

However, there may be some instances in your life that you may be left without the protection of a health insurance. For examples:

If you have just completed your education, your student health insurance that would have provided you coverage previously may have ceased tobe effective.
If you are currently unemployed and looking for a job, you may be without a medical coverage.
If you have just resigned from your job which previously offered you a group health insurance, you will be left without any until you find another.
If you are travelling to U.S. for a short period of time as an international student or as an employee, you may want onw to cover you during your stay.
The great news is there is a perfect solution to these instances that you are left with no health insurance protection – a short term health insurance.

How Long Is Short Term?

While most of these plans cover you from one to six months, there are those that offer you coverage for up to a year. The period basically depends on your stipulation. You can always renew your short term health insurance plans if you require coverage for a longer period. However, most of them do not run for more than a year.

Advantages of Short Term Plans

They do not require you to undergo physical examinations
The application process is easier with lesser paperwork and effort than for a general health insurance. However some companies may charge you a nominal fee for processing your application.
Your coverage becomes effective from the time the company gets your first premium, which can be within 24 hours of submitting the application for the insurance.
They do cover you for accidents and sudden illnesses.
Often you are allowed to visit doctors and medical facilities of your choice.
Disadvantages of Short Term Plans

They usually do not cover pre-existing health conditions (something you may have received treatment for within the past 5 years).
They also do not cover routine medical care such as dental, optical and medical check-ups.
They do not cover medical bills pertaining to pregnancy and childbirth.
They do not guarantee renewals. So suppose you had taken a 3-month plan and you get into an accident on the 3rd month, the company will cover your costs only for the 3rd month.

However, you may need on-going medical care during the 4th and 5th months. You are not covered by the insurance during the 4th and 5th months and there is no guarantee that you current company will renew your policy. If you want to go somewhere else for a short term insurance policy, they will also not cover your medical costs pertaining to the accident as it will be considered a pre-existing condition.

People with pre-existing conditions may find it difficult to get a short term health insurance. If they do get one, it would probably be more costly.
While short term health insurance may prove to be useful to many, there are some people who would prefer a general one. One reason is because, they may not know the exact time-frame they require the short term coverage. Furthermore, for those looking for a job, there is also no guarantee that their new employee will provide group medical plans. Study your needs and situation carefully when deciding on a short term health insurance.

It is great that you know the importance of having a health insurance and have decided to get one. However, you must have realised by now that health insurance quotes can be quite high. I was shocked when I received quotes that were as high as $2500 a month. But don’t fret as yet. There are some things you can do to get affordable health insurance quotes.

Maternity Coverage

If you are a lady looking for a private cover, drop the maternity coverage if you are 100% sure that you are not going to have any baby or if you are sexually inactive. If you are looking for a family cover, drop the maternity coverage for anyone in the family who may not need it. Tailor the cover to suit your needs and dropping a substantial cover like the maternity could lower your premium.

Office Visit Cover

An office visit is the amount you pay when you see the doctor or dentist for routine care. An average visit usually costs about $80. Multiply the number of times you visit the doctor a year by $80. If you think it is relatively low, then you can also drop this cover. Or you can opt to pay a higher portion of the office visit. Opting out totally or opting to pay a higher amount of the office visit will lower your monthly premiums.

Prescription Drugs

Most drugs have a generic form. Drop the cover for Brand or Non-Formulary prescription drugs if possible and always buy the generic drugs. There are health insurance plans which have a zero deductible and low co-payment for generic drugs.

Healthy Lifestyle

Being a non-smoker and living a healthy lifestyle definitely has its perks. Besides having a better quality of life, you can also get more affordable health insurance quotes. The quotes are automatically lower for those who do not smoke, drink alcohol, take drugs and are in a healthy weight range.

Obtain and Compare Free Health Insurance Quotes Online

This is very important. Comparing a huge range of health insurance quotes online will help you identify one that best suits your needs at the most affordable price. There are many resources, websites and blogs that can help you get affordable health insurance quotes. Read up on them and make a well-informed choice. Ask as many questions as possible about the policies before settling on one. It is after all your money and your health that you should be concerned about.