Cheap health insurance means one thing to one person and something else to another. While the idea of getting cheap health insurance is very appealing, no one wants to deal with the repercussions of bad or inadequate health insurance. By learning as much as possible about the health insurance industry, you will have the best chance of getting a cheap health insurance plan that will also provide the coverage that you and your family needs.
After all, the #1 cause of personal bankruptcy in the United States is due in large part to medical bills so while finding a cheap health insurance plan is key it is also important to buy a full coverage plan from a reputable company.
When you are finished reading through some of the below tips for saving money on your health insurance costs then be sure to try out our free health insurance quote tool at the top of the page. Enter your information in from the comfort of your own home or office and in moments later you can compare and contrast to find the cheapest medical insurance quotes from top companies side by side.
HMO: Health Maintenance Organizations are managed care health insurance plans. The insured must choose a primary care provider who oversees their entire health care. If you need to see a specialist, you must first go to your PCP for a referral to a specialist within the network. Because of the limited access you have to providers, this is the cheapest type of plan on the market, but also the most restrictive.
PPO: Preferred Provider Organizations are also managed care but they allow you much more control over your own health care. You do not need a PCP, or referrals. You can see any doctor you want, however the coverage is slightly less if you use an out-of-plan provider. There will also be coinsurance and deductibles for you to pay out-of-pocket.
POS: Point of Service plans are a combination of both the PPO and the HMO, featuring the flexibility to go outside the network of providers and still have coverage, but only if your PCP has referred you.
Indemnity Plans: This is the traditional type of health insurance and is the most flexible but can be the most expensive also (although watch out for some very limited benefit indemnity plans that while they offer a low monthly premium do not offer true major medical coverage). When you have expenses you pay them yourself and request to be reimbursed. You will be paid the insured percentage once the deductibles have been met for the year. You have a great amount of control over your healthcare.
Whether or not you get cheap medical insurance or not is largely dependent on you, your job and your health. If you are a self-employed, your main option is to check into individual health insurance plans. However, you may be able to access some group plans through associations you belong to (for example your local Chamber of Commerce, the NAR if you are a realtor, the AICPA if you are a CPA, etc.). If you work for an employer who offers group health insurance, you can opt for the group coverage or choose to buy an individual plan.
It is a common misconception that one can purchase a group health insurance plan for cheaper than an individual health insurance plan. This is simply not true. Many people mistakenly think that group health plans are cheaper because they are used to their employer paying some or all of the cost of their group health insurance premiums and they do not ever see the true cost of their expensive group health insurance coverage.
Everything else being equal, an individual health insurance plan will cost about half of the cost of a group health insurance plan. The catch to most individual health insurance plans is that one must be somewhat healthy in order to be accepted onto the plan.
If you have a pre-existing condition or are in less than perfect general health, your best bet for cheap health insurance will usually be with group health insurance (or with an individual health insurance plan that offered guaranteed issue coverage such as a HIPAA health insurance plan). Because there are minimal underwriting requirements with group coverage; you will receive guaranteed acceptance onto the group health plan as opposed to the individual plan where the company will review your personal health history and potentially increase your premium or deny your application altogether because of pre-existing health conditions.
If you are a fairly healthy individual (no major health problems), you will almost always want to opt for an individual plan. Underwriting is to your advantage in this case. The insurer will see that you are truly a low-risk individual and they will offer you a plan that will beat the group plan rate by at least 1/2 in most cases and in some case by more than 2/3's. You will also not be subsidizing the health care of other less healthy individuals as you would in essence be doing while paying the higher required premiums on a group health insurance plan.
When you are looking for cheap health insurance, you will be faced with many choices to make. These choices will help to determine how much you will pay for health insurance. Below are some choices and their impact on your premiums.
Choose a higher deductible to reduce costs. The more you opt to pay before the insurer has to pay out, the cheaper your policy will be.
Do not be tempted to go with low lifetime maximums, calendar year limits, or procedure limits. These may give you cheap premiums, but if you were to get seriously ill, you could easily hit such limits and be without health insurance when you need it most.
Look at how you use health care and consider your overall yearly expenses. If you have small children or expect to get pregnant soon, your family will visit the doctor more than most adults. You may want to keep deductibles lower and co-pays low to manage your yearly outlay on healthcare rather than going for the cheaper plan at the beginning.
While cheap health insurance is a more difficult thing to promise, there are many different things that health insurance plans now offer to help you get more from your healthcare dollar. These programs can make a difference to those who use them.
Direct Mail Drug Plans: These plans are for use with prescriptions you take daily. You get your prescription filled for 3 months at a time and it costs usually less than 2 months worth of medication.
HSA’s: Health Savings Accounts are plans that allow you to put pre-tax earnings into an account for you to spend on health care expenses. Things that are eligible include co-pays, coinsurance, deductibles, over-the-counter medications and more.
Discount Cards: Many companies are offering their policyholders discount cards, which allow them to access certain types of healthcare at a reduced rate. These are extremely helpful if you have a plan that does not cover everything, and you want to use things like alternative therapies or if you need vision care. Be sure that you utilize a discount card only for things like dental and vision coverage and not as a replacement for a true major medical health insurance plan that although more expensive than a discount card will give you and your family the coverage you will need in the event of a large medical bill.
The key to securing a cheap health insurance policy is to shop around. The more options you have to consider the better the chances that you will find the kind of deal you are looking for. Compare plans carefully as there are many different ones on the market and each company offers something a little different from the others. It is recommended to compare health insurance rates from many different reputable companies at least every year and some would recommend even every 6 months.
There are many cheap health insurance companies that operate throughout the country. Some serve pretty much the entire country while others, especially HMO providers, serve only a specific geographic area. Some of the cheapest health insurance companies in the United States (that although their prices are low still offer comprehensive major medical plans and have strong financial strength ratings) include:
Blue Cross Blue Shield
Aetna
CIGNA
Assurant
United Healthcare
Humana
PacifiCare
Kaiser Permanente
Celtic
UniCare
Now that you have the latest and most relevant information on finding cheap health insurance, you simply have to get started with some quotes.
One of the quickest and most efficient ways to get quotes for your health insurance needs from multiple companies at once is with a free online health insurance quote tool like the one at the top of this page.
Start your customized quote now, by simply returning to the tool box above. Enter your zip code to start and you’ll be on your way to finding cheap health insurance before you know it!
