Buying an individual health insurance can be very difficult because you do not have the benefit of an employer, union, or association to help you choose an appropriate plan. Individual plans are also among the most expensive since you have to shoulder the entire cost. Before the Affordable Care Act is fully implemented in 2014, your application for an individual health insurance can also be turned down or you can be charged more if you have a pre-existing medical condition.
Here are some tips if you are self-employed and want to purchase health insurance on your own:
Look at your alternatives. The following options offer better price, wider coverage, or both compared with an individual health plan. Unfortunately, not everyone is qualified.
· Join a group plan through your parent, spouse, or domestic partner. You can be covered as a dependent under a relative’s plan, if you have lost other coverage. Young adults under 26 years can join a parent’s plan under the new health care law, except for Medicare and retiree-only plans.
· Get public insurance.Government-sponsored plans are among the most affordable plans available. However, it may be hard to qualify for these plans. Check your local health department if you or members of your family can qualify for Medicare, Medicaid, or CHIP (Children’s Health Insurance Program).
· Continue coverage with COBRA. This program allows you to continue your employer-based health coverage for 18 months or even longer if you lose or leave your job. However, it will be more expensive since you will be paying for the full premium.
· Find out if you are allowed to convert your group plan from your previous job to an individual one.
Know what you need.There are so many different plans available to suit almost everybody’s needs. A good plan will not only provide for your current medical needs but it can also protect you against future expenses should you fall ill or meet an accident. If you can afford one, you should choose a comprehensive plan that includes coverage for physicians, hospital care, diagnostic tests, prescription drugs, rehabilitation, mental health care, and chemotherapy.
Buy only from trusted companies. When buying a health plan, you can’t just trust anybody. You may have seen several sales pitches that throw words like “cheap premiums,” “big discount,” and “most affordable plans.” Beware of these plans or you might end up buying junk plans that offer little or no protection if you ever get sick.
Do your research.There are thousands of plans available in every state, that’s why it is very important to shop around before choosing a plan. When considering your options, sort and compare them according to premiums, deductibles, co-payments, co-insurance, and out-of-pocket limits to get a better picture.
Do multiple applications if you’re concerned about your pre-existing condition. Health insurance companies might have different underwriting guidelines when looking at the same health conditions. If one company turns you down, you might be qualified for another.
When purchasing a health plan, consider working with a licensed broker. Sure you can send your applications directly to most carriers, but an experienced broker can help you understand the advantages and disadvantages of each plan to help you pick the right one. A broker can also arrange a pre-screening from each carrier to determine if you are qualified for their plan. You can also receive the estimated cost of your plan, based on the information you’ve provided.
Learn more about health insurance and protect your family.
