Exhausting Health Insurance Coverage Options
One of the biggest financial risks that people can take these days is to go without health insurance.
Many people find the astronomical costs of purchasing individual health insurance simply impossible to afford, leading many to abandon the search and go without this all-important piece of their personal financial picture.
Many reports have shown that the biggest reason for personal bankruptcies in the United States is medical expenses.
With such a large risk, it's vital to thoroughly understand the issue, and exhaust all possible avenues of cost savings, before deciding to skip coverage altogether.
Although most people think solely of traditional plans when they hear the words "health insurance," in reality a few options exist beyond the traditional 80/20 plan.
(An 80/20 plan refers to coverage where an individual pays all the costs up to a relatively low deductible, and then the plan pays 80 percent of eligible expenses, up to the out of pocket maximum amount, after which the plan pays all eligible expenses.
) One of these options is a high-deductible plan.
With these plans, the deductibles are much higher, usually into the thousands of dollars instead of hundreds, but the out-of-pocket maximums are usually lower, and sometimes are the same as the deductible.
Individuals also have the opportunity to use Health Savings Accounts, which are tax-favored, to fund the increased deductible amount.
The biggest and most important draw to these plans, beyond the tax-favored treatment of the expenses, is the reduced premium costs.
By exchanging higher deductibles for reduced premiums, consumers can save as much as 50 to 75 percent off the premium cost of a traditional, low-deductible plans.
Another way to save on health insurance costs is to purchase a health indemnity plan.
These don't work like traditional or high-deductible plans; they are more like reimbursement plans.
They will typically reimburse a person for certain expenses, up to varying limits.
Some indemnity plans work by covering a certain, and usually limited, amount of visits or procedures, in a given year.
Most carry a catastrophic coverage provision, which lessens the risk considerably, and the premiums are again reduced substantially when compared to traditional plans.
Many people find the astronomical costs of purchasing individual health insurance simply impossible to afford, leading many to abandon the search and go without this all-important piece of their personal financial picture.
Many reports have shown that the biggest reason for personal bankruptcies in the United States is medical expenses.
With such a large risk, it's vital to thoroughly understand the issue, and exhaust all possible avenues of cost savings, before deciding to skip coverage altogether.
Although most people think solely of traditional plans when they hear the words "health insurance," in reality a few options exist beyond the traditional 80/20 plan.
(An 80/20 plan refers to coverage where an individual pays all the costs up to a relatively low deductible, and then the plan pays 80 percent of eligible expenses, up to the out of pocket maximum amount, after which the plan pays all eligible expenses.
) One of these options is a high-deductible plan.
With these plans, the deductibles are much higher, usually into the thousands of dollars instead of hundreds, but the out-of-pocket maximums are usually lower, and sometimes are the same as the deductible.
Individuals also have the opportunity to use Health Savings Accounts, which are tax-favored, to fund the increased deductible amount.
The biggest and most important draw to these plans, beyond the tax-favored treatment of the expenses, is the reduced premium costs.
By exchanging higher deductibles for reduced premiums, consumers can save as much as 50 to 75 percent off the premium cost of a traditional, low-deductible plans.
Another way to save on health insurance costs is to purchase a health indemnity plan.
These don't work like traditional or high-deductible plans; they are more like reimbursement plans.
They will typically reimburse a person for certain expenses, up to varying limits.
Some indemnity plans work by covering a certain, and usually limited, amount of visits or procedures, in a given year.
Most carry a catastrophic coverage provision, which lessens the risk considerably, and the premiums are again reduced substantially when compared to traditional plans.