Why Cheap Health Insurance Means More Out-of-pocket Expense
Cheap health insurance is the goal of most consumers seeking health care coverage. However, this can lead to inadequate coverage and more out-of-pocket expense. The trick is to find cheap health insurance while retaining adequate health insurance coverage. It can be done more easily than you imagine, so don't immediately fall for those cheap health insurance plans that seem to fall in your lap.
Cheap Health Insurance Means a Higher DeductibleA common way to achieve cheap health insurance is to raise your deductible. You will need to meet the deductible before your health insurance plan begins to pay for medical expenses. The higher the deductible, the cheaper the health insurance but also the more you will be paying from your own bank account. This is definitely a balancing act, to find the right deductible so as to keep your premiums reasonable and to control your out-of-pocket expense.
Cheap Health Insurance Means a Higher Co-payWhen you get your checkups or visit your primary care physician about a particular problem, you will pay what is known as a co-pay. This is a set amount generally in the neighborhood of $20 to $50 depending upon the plan and whether or not it is a specialist you are seeing or not. To get cheaper health insurance, you can increase this co-pay, but that, of course, means you will pay more out of pocket each time you visit your doctor or a specialist.
Cheap Health Insurance Means You Pay a Higher Co-insurance RatioThe co-insurance ratio is the amount you pay for medical expenses after the deductible has been met. It also stops when your stop-loss limit is met. In between these times, you pay a percentage of your medical expenses and the health insurance company pays the remainder. A common co-insurance ratio is 80-20, where you pay 20 percent and the insurance company pays 80 percent. To get cheaper health insurance you can pay a higher percentage, such as 70-30 or 65-35, but if you have a hospital stay or expensive treatments this can add up to thousands in out-of-pocket expenses.
Cheap Health Insurance Means Possible ExclusionsThe most important thing you must worry about when it comes to cheap health insurance are exclusions to coverage. Pre-existing conditions can lead to specific medical conditions being left out of your coverage. This can be devastating if you develop that condition and require extensive treatment. In fact, this is the type of thing that can lead one into bankruptcy. The new health care reforms are set to abolish this practice, but, until they do, avoid plans with exclusions if possible.
Find Cheap Health Insurance and Battle Higher Out-of-pocket ExpenseThere is no need to get completely disgruntled. You can still find cheap health insurance and not have to worry about higher out-of-pocket expenses. This will require many factors being in your favor, most notably your health, but it can be done. If you take care of yourself, don't smoke and get regular checkups, you can lower your health insurance costs. You can also shop around using online rate quotes to find the most affordable health insurance plan out there. Even though health insurance rates are regulated to some degree, the way companies evaluate your risk is different. One company may place you in a higher risk category and thus be able to charge you a higher rate. This is where health insurance quotes come in to help you find the most affordable option for you. |
Get Free Health Insurance Quotes!
