Individual Health Insurance
For those not otherwise covered by medical insurance policies from an employer or other source, the only other option available is often to buy an individual insurance policy. The rules and laws for purchasing individual health insurance vary by state. Many states will permit an insurance company to reject a potential client who has a poor medical history or a chronic disease. However, some states require that the insurance company offer at least a minimal coverage package to anyone who applies (the "guaranteed issue" law). Read on to find out more about individual health insurance:
- Things to think about before buying an individual plan
- Coverage options for individuals
- The cost of an individual plan
- What if you lose your insurance?
Individual Health Insurance Considerations
Before purchasing an individual insurance policy, it is helpful to consider some general questions. Important points include issues such as: How much will the monthly premium cost? Are there deductibles I must pay before coverage begins? Can I visit any doctor, hospital, or clinic I wish, or will I be restricted to a specific list of doctors? Are specialists available to me? Will I be covered in case of an emergency or a catastrophic, long-term illness?
Individual Health Insurance Options
Once you have an idea of what kind of coverage you are looking for, there are many options available, both public and private. Many insurance companies offer private, individual insurance coverage, but these plans can be expensive, particularly if you have a preexisting or chronic medical condition. There are also a limited number of government programs that will provide insurance coverage, but these are typically set up for people of retirement age (such as Medicare).
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Costs of Individual Health Plans
If the cost of purchasing a private policy from an insurance company is too excessive, there are some other possible options to consider, as well. Most insurance companies offer a wide variety of packages, with different amounts of coverage. If you feel that you are able to afford your regular check-ups and routine doctor visits yourself, a cheaper coverage package that provides for emergency hospital stays or sudden illnesses only might be feasible.
Additionally, there are some organizations, such as alumni groups, trade organizations, and workers' unions that can purchase a group of individual policies at reduced rates. Finally, there are so-called "discount plans", which offer an uninsured person access to a list of doctors and pharmacies where you can purchase medical products and services at a cheaper rate. It is important to remember that these discount plans are not insurance coverage, however, and may not contribute to the costs of a hospital stay or emergency illness.
Losing Your Insurance
An additional option for those people who are losing their insurance coverage due to losing their job may be to temporarily extend their employer's insurance coverage program. Thanks to the Consolidated Omnibus Budget Reconciliation Act (COBRA), some employers are required to provide insurance coverage programs to terminated employees for up to 18 months following the employee's final day at work. The negative aspect of this temporary extension of coverage is that the premiums paid by the employee are much higher than they had been while the person was still working for their former employer.
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Last Updated : Friday, October 31, 2008