Affordable Health Insurance: How To Get It Without Going Broke

Most people know the basics of health insurance. They have a basic idea about their benefits and the plans that cover them. However, for the person with a pre-existing medical condition, understanding health insurance and its different types can be overwhelming.

The Patient Protection and Affordable Care Act (PPACA) of 1996 reformed the nation's healthcare system. Among its many provisions, the individual mandate requires most individuals to have some kind of health insurance. This varies from state to state. According to the law an individual must have an approved medical plan or a policy that pays a specified portion of his or her medical expenses. The insured must be covered for preventive care and hospitalization. There is also a requirement for individuals who are not considered a dependent of the insured.

The insured may choose to enroll in a preferred provider organization (PPO) or a point-of-use (POS) plan. A POS plan is more flexible than a PPO and has more freedom to choose a primary care provider (PCP). For individuals who do not wish to enroll in a health insurance plan or a PPO, there are government programs that will provide high quality health care services for lower cost. Among these are Medicaid managed care programs, Medicare supplement, and temporary subsidized jobs. An example of a Medicaid managed care program is the Medicaid prescription drug benefit program which provides low-income individuals access to generic, prescription drugs at discounted rates.

For those with individual health insurance plan, the process of choosing a health plan is somewhat simplified. One can select a health insurance plan that covers major medical procedures like surgery, hospitalization, diagnostic tests, dental care, mental health, emergency care and nursing home care. However, for individuals with chronic health problems, the choice of health plan largely depends on their health care needs. One can apply for an individual health insurance plan which covers specific health care needs like prescription drugs, dental care, eye care and chiropractic services.

As the cost of medical care rises, the need for health insurance benefits also goes up. However, some people have health benefits because of family members who are covered under family plans or because they have paid the higher premiums. However, these health benefits may not help if the insured gets sick. Hence it is better to opt for an individual medical care plan which covers illnesses only. Health insurance plans do not offer cash payments when the insured gets sick during the time of coverage. This makes it difficult for people to pay any unexpected medical bills when they arise.

Another factor affecting the choice of health plan is the deductible amount. Some people are able to choose a lower deductible amount as compared to others. If the amount of deductible is high, fewer medical costs can be covered when the insured gets sick. Hence a person should evaluate the deductibles that he can afford and the extent of his annual income before getting a free preventive care.

A person can get short term coverage for his health costs up to a year. Free preventative care through hsa is also available without medical costs. A hsa is an HSA with a limited budget that accumulates over a specified period of time. Certain pre-qualifying conditions need to be met before the applicant can take advantage of this coverage.

A free annual preventive care is also offered by some HSA programs. One can easily choose from among the out-of-network providers at a lower premium level. However, in order to get coverage, one needs to ensure that all the providers listed are part of the HSA and that the percentage of the deductible charged is not higher than the average monthly premium for the plan.