The United States government has introduced several programs and plans to help American residents fully enjoy health insurance benefits. “Obamacare” is one such system that provides health insurance facilities to both high and low-income groups in America. A report from a Washington D.C. company However, Avalere Health reveals that the price of one of Obamacare’s plans, dubbed the Silver Plan, will increase by about 34% in 2018. The silver plan offers a decent insurance policy and is also a bit high on the monthly premiums. For those who cannot afford to pay such high premiums; You don’t need to worry because there are also policies and a subsidy system that allow for low-cost health insurance.
When buying cheap health insurance, one should have in-depth knowledge of health insurance. Shelby George, Manning & Napier’s senior vice president of Advisor Services, advises buyers to always be aware of the extent to which a company’s costs are covered. In other words, don’t get carried away with the cheap rates, instead focus on how much coverage insurance companies offer for the cheap rates they advertise.
To get the best cheap health insurance, here is an explanation of the different policies available and a description of whether you can get insurance “for free”.
Grants and other health insurance companies:
With the goal of providing health insurance coverage to all Americans, one of the many useful plans proposed by the government is that of “subsidies.” Simply put, a grant is an amount the government pays to insurance companies to provide health insurance options to people on low incomes. This means that through grants, people who fall into the low-income bracket can enjoy health insurance benefits that insurance companies would otherwise deny on any other short-term policy claim.
An individual earning around $48,000 and a family of four earning less than $98,000 are the ones who can enjoy the benefits of subsidies. With the help of subsidies, people with low incomes can enjoy good and inexpensive health insurance. However, these subsidy programs proposed by the Obamacare plan are more likely to be modified or scrapped altogether by the Trump administration.
Speaking of other health insurance plans, a silver plan will cover up to 70% of a person’s healthcare costs, while a bronze plan will cover up to 60% of the costs, and the remaining percentage of fees must be paid out of the person’s pockets. Now, comparing these two plans, if you absolutely do NOT want to spend any money out of your pocket, then choosing a Bronze plan along with a grant will be of great help. For those who can’t afford to pay out of pocket, the Bronze Plan’s 60% coverage along with the remaining 40% through grants help provide affordable health insurance.
What kind of policy can you choose?
The first step to getting the best cheap health insurance is knowing which policy suits your needs. Here is a list of two options, briefly explained to help you make the best choice.
- 1. Short-Term Policy: A short-term policy is for those people who are not eligible to claim subsidies. In other words, individuals who find it “unaffordable” to purchase health insurance are advised to opt for this policy. Here, the term “unaffordable” is defined as a cost that exceeds 8% of an individual’s or family’s annual income. Individuals earning between $49,000 and $69,000 and families earning between $99,000 and $129,000 should buy short-term policies, according to Nate Purpura, the vice president of consumer affairs (ehealth.com).
So if it is difficult to pay expensive premiums and get health insurance, the short-term policy is highly recommended. However, there are no penalties for not wanting health insurance. On the positive side, however, it is beneficial to the individuals themselves if they have some degree of financial protection, which is beneficial in unfriendly circumstances.
Here are some notable details about short-term policies:
- These policies generally have a term of up to 3 months and can be extended up to 9 months (3-month extension).
- Under the new rules proposed by President Trump, a short-term policy will be mandatory for all individuals. However, this regulation has not yet been adopted, but will soon come into force.
- These policies do not provide coverage for pre-existing medical conditions i.e. H. Medical conditions you suffer from before applying for the policy.
- If you want to include such pre-existing conditions in the coverage plan at all, the premiums will increase significantly.
- Unlike Obamacare programs, short-term policies do not cover fees for maternal care, abuse-related injuries, and mental health treatment.
- With a short-term policy, one can access decent healthcare facilities for a premium of around $100 per month.
- Overall, those looking for cheap health insurance for individuals or cheap health insurance for families can reap great benefits from this policy despite the few coverage options.
- 2. Combined policy or combination of policies:
Traditional policies, which are higher-premium plans, cover all of the expensive hospital bills in the event of a risky illness or accident. If you opt for short-term plans, only normal doctor’s visits are covered. However, if you want to take advantage of both policies, i.e. to ensure risk diseases as well as normal or routine diseases (such as cough, cold, fever), then insurance companies now offer combination packages.
In the recent past, people applied for both policies separately to be covered in both cases. This made it difficult for insurers to calculate different percentages and amounts; Hence the plan for combo policies, allowing people to enjoy both benefits within a single policy, came about. As obvious as it may seem, taking out these policies will definitely result in paying higher premiums than usual.
So, a key point of all the points discussed above is that one should not always be drawn in by offers that only advertise cheap health insurance for individuals, but rather look at the quality of protection they offer for the cheap insurance rates. Buying health insurance, like any other insurance policy, requires thorough research and study. As it is a matter of health; it is nowhere worth worrying only about money. Quality service always pays off, so one should be smart enough to look for policies that offer affordable and quality health insurance plans.
