While at first glance, individual health insurance plans can seem too cost-prohibitive, the risks of being uninsured are equally, if not even more, dangerous. Because an individual policy is usually secured from an insurance company who sells on the open market, the premiums are higher and the benefits may be fewer. This may be changing in the future as the Patient Protection and Affordable Care Act signed into law by this administration in March, 2010 begins to take effect. The goal of this legislation is to have all Americans protected by health insurance by 2014.
Until then, the 8%-10% currently uninsured in this country may need to find workable solutions within the current market place. For those who have recently left their jobs for self-employment, or who have been let go by their employers, COBRA offers up to 18 month gap-coverage. During this time, it is assumed that the individual will find adequate health insurance through a private company or in a new job setting. Unfortunately, this emergency coverage may not be as thorough and can be more costly because it does not include the former employer’s contribution.
About 4 million seniors and early retirees may need an individual health care plan until their Medicare coverage starts at age 65. For some, the gap between the current government program and rising prescription drug costs may also warrant individual health care.
When looking for an individual health insurance plan, always check the state guidelines. Searchers will also find tools for locating the best plan, risk pools that may be options for those with pre-existing conditions, CHIP and Medicaid programs, and methods for locating participating doctors. Qualifying for a high risk health insurance pool may be expensive, but it allows coverage for a pre-existing condition that may not be covered in a private individual policy.
Choosing an individual health insurance plan by obtaining online quotes and information about various insurance companies is easy today. By simply providing basic health information and your zip code, you can compare plans by the amount of their benefits, premium options, and deductibles. Taking the time to compare is really important because individual plans can vary by as much as 50%. Be careful of adding supplemental policies or riders unless you really need them. Sometimes the supplements are actually little more than duplication of coverage already listed in your primary policy.
Finally, review your plan yearly for updates or changes. While individual health insurance is a costly investment, being caught in a medical emergency without coverage could be disastrous.