Learn About the Types of Health Insurance to Consider

To begin untangling these concepts, you may research different types of health insurance and networks to give yourself a general idea of which plan may be best for you.

Then, you may start comparing premiums and out-of-pocket costs.

There are also different categories you may be placed in which will determine the percentage of health care paid by you and the percentage paid by your insurer.

If an insurer pays a higher percentage, you will likely pay a higher premium each month but less in out-of-pocket medical expenses.

Note that being in a certain category will not determine the quality of your health care or which doctors are available in your network.

Health insurance plans come in four different types.

The plan type will determine which doctors are in or out of your network and where you may go for treatment or check-ups.

Certain healthcare plans may still cover you if you go to an out-of-network doctor.

Other plans may allow you to visit an out-of-network doctor but entice you to visit in-network doctors instead.

Having a general understanding of the types of health insurance available and how to distinguish between plans may make it easier to learn the other aspects of healthcare.

As a result, you will be well-informed and know which questions to ask when contacting different providers and comparing plans.

Learn About the Pros and Cons of an Affordable Health Insurance Plan

Finding cheap health insurance plans may take a great deal of time and research, but it is worth the effort.

If you or your family members do not qualify for a government assistance program such as Medicaid or CHIP, you will need to research cost-effective plans through private insurers.

A plan that is cheap in the short-term may cost you more in the long-term.

For example, a modest health insurance premium may ease the strain on your monthly budget, but usually comes with a higher deductible.

A deductible is a specific amount of money you must pay before your provider covers your claims.

Having a high deductible may not be such a bad thing if you are a relatively healthy person and do not require expensive prescriptions or treatments.

However, you may be stuck with extremely pricey medical bills if you need emergency medical treatment and have not paid off much of your deductible.

You may be able to find low cost health insurance by determining your eligibility for an advance premium tax credit or cost sharing reduction.

An advance tax credit is a credit you may take in advance to lower your monthly healthcare premium.

At the end of the year, you may have to pay back the federal government during your tax returns if you took out more than what you are due.

A cost sharing reduction is a discount, sometimes called extra savings, which lowers the amount you pay in deductibles, copayments and coinsurance.

You must enroll in a certain kind of plan to receive a cost sharing reduction.

You may be eligible for other types of deductions if you are a member of an Indian tribe, a shareholder in the Alaska Native Claims Settlement Act (NCSA) corporation or you participate in a VA benefit program.

How to Find Health Insurance Quotes

Obtaining several health insurance quotes will greatly increase your chances of finding affordable coverage for you and your family.

You are entitled to receive quotes for free when you contact providers.

Calling a company’s general information number, filling out an online questionnaire and mailing in a request are all appropriate contacting methods.

You may also contact an agent, broker or assister if you would like more personal assistance.

To receive an accurate quote, you must provide the company with some of your personal information, such as the size of your immediate family and the age of each family member.

Learn About Options for Health Insurance Plans

If you are looking for health insurance plans for a family, you may have a more difficult time finding an affordable option.

The age of your children will also affect the price.

For instance, families in a recent study received much higher premiums than what they were used to when their children reached 21 years of age.

The older you or your family members become, the more likely it is that your premium will increase.

To find affordable options, consider the four main types of coverage, including:

  • Exclusive Provider Organization (EPO), which allows you to visit doctors in network.
  • Health Maintenance Organization (HMO), which allows you to visit doctors who have HMO contracts.
  • Point of Service (POS), which lowers the cost of in-network doctors but still allows you to see out-of-network doctors.
  • Preferred Provider Organization (PPO), which costs less when you visit in-network doctors. However, the price of out-of-network doctors does not increase.

An individual health insurance plan will cost much less than a family plan. To determine what type of plan is right for you, contact multiple insurers.

What is short term health insurance?

Short term health insurance is an option for individuals who are transitioning from one job to another, recently lost a job or are in a similar situation.

This includes people who were previously insured by an employer and now have no coverage, seniors who want to begin Medicare but avoid a coverage gap and young adults who are 26 years of age and need to leave their parents’ insurance plan.

Another reason to apply for a short term medical insurance plan is if you miss the open enrollment period in the Marketplace.

These plans allow you to receive coverage on the same day that you apply.

Furthermore, your deductible is somewhat flexible, and you may choose how long the coverage lasts.

Dropping a short-term plan does not always mean you will have to pay a penalty. In fact, you may qualify for a refund for unused premium payments.

It is a good idea to research short term health insurance reviews when looking at your options.

You may be able to find valuable insights from previous customers who have been in a similar situation.

Previous customers may give you an idea of the responsiveness of a provider and whether they received valuable coverage.

What is long term health insurance?

Long term health insurance is a type of coverage for seniors or individuals with illnesses.

It may help poly holders with the cost of medical bills if they cannot care for themselves because of a disease or disability.

Coverage may go toward assisted living programs, nursing homes or at-home care. While it is often thought that short-term insurance is the riskiest type of insurance, long-term care insurance has its own risks.

Some individuals on this type of plan end up paying too much in premiums and may not be able to afford the other costs of living.

Long term medical insurance may be difficult for you to afford, in part because the overall price of healthcare in the United States has risen.

Applying for long-term care without much of a financial plan may also increase the amount you pay.

Thus, you may save a lot of money by applying in advance. You may also save by lowering your supplemental coverage and removing comprehensive benefits, including lifetime coverage and 5 percent compound inflation protection.

It may be better not to purchase long term care if you have low assets and premiums significantly deplete your budget.

If you can afford the high premiums, however, you may benefit from long-term insurance. You may have peace of mind knowing that you are covered when you cannot care for yourself.

What is supplemental health insurance?

Supplemental health insurance refers to any type of healthcare that is not essential to a basic plan.

For instance, a typical plan must meet minimum essential coverage requirements, including preventative care, wellness check-ups and prenatal care.

Optional coverage, on the other hand, usually includes dental insurance, eye insurance and sometimes prescription drug coverage.

These insurance add-ons are usually necessities for families but end up costing a significant amount of money.

Thus, some families opt for a supplemental insurance plan for one or more of the following types of care:

  • Dental
  • Vision
  • Critical illness
  • Travel insurance, if a policy-holder wants out-of-network coverage
  • Long-term insurance
  • Short-term insurance
  • Cancer insurance
  • Accidental death or dismemberment
  • Accidental health insurance
  • Hospital indemnity insurance

Your chances of finding the best supplemental health insurance will depend on the amount of time you can spend contacting different providers and obtaining quotes.

It will also depend on the needs of you and your family.

For example, you may consider vision insurance if you and your family need corrective eye wear and spend a great deal of money on it eye exams, glasses and contacts.

Similarly, dental insurance may be a cost-effective option if you or your family members need extensive dental treatment.