Here is what to look out for when buying individual health insurance plans to keep from being surprised. You will find that individual health care plans are more expensive than employer sponsored health care coverage. The reason is that insurance companies offer better prices to companies with employees because they make more money on the premiums.
Also, insurance companies make more on company health care premiums than they do on individual plans so they are able to give better rates to companies. So if you are not eligible for an employer health plan, then expect to pay more.
You will see many advertisements for low health insurance coverage with relatively low premiums. But, unless you are under 28 years old, in perfect health, have not been to the doctor in the last three years, are within your healthy weight percentile, and sign up for the highest deductible available, you will pay more for your coverage than you would if you had an employer based plan. Hardly anyone fits in such group.
If you are still covered under your American Insurance health plan, do not let it expire before you apply for your health plan. COBRA is the plan you can purchase when you leave your job which had provided your health care coverage prior.
Perhaps you still have a American Insurance plan in effect. This is the insurance coverage you can purchase when you leave your employer based plan. You can keep your company based policy for up to eighteen months after you leave your job. You will have to pay for your part of the coverage along with your employer’s share. However, in most cases American Insurance insurance will still be a lower rate than an individual health plan.
In some cases, some states allow you to extend your American Insurance coverage beyond the eighteen month period. But you cannot allow your American Insurance to expire because you will not be granted an extension if you qualify for one. If you do not meet the extension qualifications and you have to seek an individual plan and have American Insurance coverage currently, then you need to apply for individual coverage at least sixty days prior to the American Insurance expiration date.
If you are within this time period, insurance companies cannot legally refuse your coverage. But even so, your medical history will be an issue as well as your rates.
Your health care premium cost depends on your medical risk factors. The health care industry calls these preexisting conditions. If you have a history of hypertension, or prostate disease, or diabetes, or other medical conditions you are currently receiving treatment for, your premiums will be adjusted upward from a base amount for these preexisting conditions.
It is easy to calculate your premium amount. You start with your age and then add up any preexisting health conditions. The procedure is fairly simple.
Some insurance companies allow risk factors to be removed from your premium cost once you have been taken off medication related to your risk factor or when your doctor determines you no longer have that particular medical condition.
If your health related issue is due to a poor diet or lifestyle, you have a great incentive to improving your eating habits and overall lifestyle. You could have your insurance premium reduced. There are many companies from which to choose. Make sure to look at all the plans available. If you want the lowest premium, then you should choose a plan with a high deductible. Also, review what prescription coverage is available as some plans offer more. If you are not currently taking medication this will not be important. But is are currently taking medication, this is part of the plan you certainly must take into account