The United States Government has been coming up with various schemes and plans to help US residents enjoy the benefits of health insurance to the fullest. “Obamacare” is one such scheme that provides health insurance facilities for high and low income groups in America. However, a report from a Washington DC company called Avalere Health reveals that the price of one of the plans in Obamacare, called the silver plan, will increase to around 34% in 2018. The silver plan provides a decent coverage policy and it is a little high on the monthly premiums. For those who cannot afford such high premiums; they should not worry, as there are policies on top of this and a subsidy scheme, which will provide health insurance did low cost.
while you shop cheap health insurance plans, one must have a solid knowledge about health insurance policies. Shelby George, senior vice president of advisory services at Manning & Napier, advises buyers to always look at how much coverage is provided for the costs a company provides. In other words, one should not get carried away with cheap rates, but rather focus on how much coverage insurance companies provide for those cheap rates they advertise.
To get best cheap health insurance, Here is an explanation of the different policies available and a description of whether one can get “free” insurance.
Subsidies and other Health Insurance Plans:
With the goal of providing all Americans with health insurance coverage, one of the many useful plans proposed by the Government is that of ‘subsidies’. A subsidy, in simple words, is the amount paid by the Government to insurance companies to provide health insurance services to low-income people. This means that people belonging to the low income group will be able to enjoy health insurance benefits through the use of subsidies, which would otherwise be rejected by insurance companies on any other short-term policy claims.
An individual earning around $48,000 and a family of 4 earning less than $98,000 are eligible to benefit from the subsidies. Therefore, people with low income can enjoy good cheap health insurance with the help of subsidies. However, it is more likely that the Trump administration will modify or completely eliminate these subsidy schemes proposed by the Obamacare plan.
Speaking of other health insurance plans, a silver plan will cover up to 70% of a person’s healthcare charges, while a bronze plan will cover up to 60% of the costs and the remaining percentage of the charges will have to be paid out of pocket. charge the person Pockets Now, comparing these two plans, if one wants to spend absolutely NO money out of pocket, then choosing a bronze plan along with a subsidy will be of great help. For those who cannot pay out of pocket, the 60% bronze plan coverage along with the remaining 40% covered by subsidies will help to enjoy cheap health insurance
What type of policy can be chosen?
The first step to get the best cheap health insurance it is to be aware of which policy is adapted to the needs of each one. Here is a list of two options briefly explained, so that one can choose the one that suits the best.
1. Short-term policy: A short term policy is for those people who do not qualify to take advantage of the subsidies. In other words, people who find it ‘unaffordable’ to get health insurance are advised to choose this policy. Here, the term ‘unaffordable’ is described as cost that exceeds 8% of an individual’s or family’s annual income. According to Nate Purpura, vice president of Consumer Affairs (ehealth.com), people earning between $49,000 and $69,000 and families earning between $99,000 and $129,000 are supposed to opt for short-term policies.
Therefore, if one finds it difficult to pay expensive premiums and avail health insurance, it is highly recommended to go for the short term policy. However, there are no penalties if one does not wish to have any health insurance. But, on a positive note, it is beneficial for the people themselves, if they have some financial protection that will be beneficial in hostile circumstances.
Here are some notable details about short-term policies:
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These policies usually have a duration of up to 3 months and can be extended up to 9 months (on a 3-month renewal period).
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Under the new rules proposed by President Trump, having a short-term policy will be mandatory for all individuals. However, this rule has not yet been approved, but it will soon be in force.
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These policies do not provide coverage for pre-existing conditions, that is, conditions that one had before applying for the policy.
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If everyone wants to include such pre-existing conditions in the coverage plan, the premiums will increase substantially.
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Unlike Obamacare schemes, short-term policies will not cover charges for maternity care, abusive injuries, and mental health treatment.
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By having a short term policy, one can avail decent health facilities at a premium of around $100 a month.
In general, despite the low coverage options it offers, those seeking cheap health insurance for individuals gold cheap health insurance for families You can avail great benefits from this policy.
2. Combined Policy or Combo of Policies:
Traditional policies or in other words higher premium plans will provide coverage for all expensive hospital bills in case of high risk accidents or illnesses. Whereas, choosing short-term plans will simply cover normal doctor visits. But if one wants to take advantage of the benefits of both policies, that is, get coverage for risk illnesses as well as normal or routine illnesses (like cough, cold, fever), insurance companies these days offer combination packages.
In the recent past, people used to apply for both policies separately in order to take advantage of coverage in both cases. This was making it difficult for insurers to calculate different percentages and amounts; therefore, the combined policy plan was born, allowing people to take advantage of both benefits within a single policy. However, as obvious as it sounds, opting for these policies will definitely result in one paying higher premiums than usual.
So one gist of all the points discussed above is that one should not always be attracted to offers that merely advertise that they provide cheap health insurance for individuals instead, one should look for the quality of the coverage they provide for the cheap insurance rates. Buying health insurance also requires extensive research and study, just like any other insurance policy. Since this is a problem related to one’s health; nowhere is worth worrying about money alone. Quality service is always paid for, therefore one should be smart enough to search for policies that provide quality and affordable health insurance plans.