The United States government has put forward several programs and plans to help American residents fully enjoy health insurance benefits. Obamacare is one such system that provides health insurance options for both high-income and low-income groups in America. However, a report by a Washington DC company called Avalere Health shows that the price of one of the plans in Obamacare, called the Silver Plan, will increase to about 34% in 2018, which is a bit high in monthly premiums. For those who cannot afford to pay such high premiums; You don’t need to worry as there are also policies and a subsidy system to help Health insurance at low costs.
While shopping cheap health insurance, You should have in-depth knowledge of health insurance. Shelby George, senior vice president of Advisor Services at Manning & Napier, advises buyers to always be mindful of how much coverage is being provided for the costs a company is providing. In other words, don’t get carried away with the cheap rates, but rather focus on how much insurance coverage the insurance companies offer for the cheap rates they advertise.
To get best cheap health insurance, Here is an explanation of the different policies available and a description of whether you can get insurance “free of charge”.
Grants and other health insurance plans:
With the goal of providing health insurance coverage to all Americans, one of the many useful plans the government has proposed is “subsidies.” In simple terms, a subsidy is the amount that the government pays to insurance companies to provide health insurance options to those on low incomes. This means that by claiming grants, people belonging to the low-income group can access health insurance benefits that would otherwise be denied by the insurance companies for other short-term insurance claims.
A person earning about $48,000 and a family of four earning less than $98,000 can reap the benefits of the subsidy. Therefore, low-income people can enjoy good, cheap health insurance with the help of subsidies. However, these subsidy systems proposed in the Obamacare plan are more likely to be modified or scrapped altogether by the Trump administration.
As for other health insurance plans, a silver plan covers up to 70% of a person’s healthcare costs, while a bronze plan covers up to 60% of the costs, and the remaining percentage of the costs must be paid from the person’s pockets. Now, comparing these two plans, if you absolutely do NOT want to spend any money out of your own pocket, then choosing a Bronze plan along with a grant will be of great help. For those who cannot afford to pay out of pocket, the Bronze plan helps with 60% coverage and the remaining 40% through grants cheap health insurance.
What type of policy can you choose?
The first step to get that best cheap health insurance is to be clear about which policy suits one’s own needs. Here is a list of two options that will be briefly explained to help you choose the best solution.
1. Short-Term Policy: A short-term policy is aimed at people who are not eligible for subsidies. In other words, people who find health insurance “unaffordable” are advised to choose that insurance. The term “unaffordable” is used here to mean a cost that exceeds more than 8% of an individual’s or family’s annual income. According to Nate Purpura, vice president of consumer affairs (ehealth.com), individuals earning between $49,000 and $69,000 and families earning between $99,000 and $129,000 should opt for short-term policies.
So if you find it difficult to pay expensive premiums and get health insurance, getting a short-term policy is highly recommended. However, there are no penalties for not wanting to take out health insurance. On a positive note, however, it is beneficial to the individual themselves if they have some financial security that comes in handy in unfriendly circumstances.
Here are some notable details about short-term policies:
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These policies typically have a term of up to 3 months and can be extended up to 9 months (in the 3 month renewal period).
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Under the new rules proposed by President Trump, all people will be required to have a short-term policy. However, this regulation has not yet been adopted, but will soon come into force.
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These policies do not provide coverage for pre-existing conditions, i.e. diseases that you are already suffering from before you apply for the policy.
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If you want to include such pre-existing conditions in your insurance coverage, the premiums will increase significantly.
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Unlike Obamacare programs, short-term policies do not cover costs for maternal care, abuse-related injuries, and mental health treatment.
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With a short-term policy, you can get decent health care for about $100 a month in premium.
By and large, despite the few cover options, those are the ones that seek Cheap health insurance for individuals or cheap health insurance for families, can benefit greatly from this policy.
2. Combined policy or combination of policies:
Traditional policies, which are higher-premium plans, cover all of the expensive hospital bills in the event of risky illnesses or accidents. Short-term plans, on the other hand, only cover normal doctor visits. However, if you want to take advantage of both policies, i.e. want to cover both high-risk illnesses and normal or everyday illnesses (such as cough, cold, fever), insurance companies now offer combination packages.
In the recent past, both policies were applied for separately in order to benefit from coverage in both cases. It became increasingly difficult for insurers to calculate different percentages and amounts; Hence the plan for combo policies that allow people to get both benefits within a single policy was born. As obvious as it may seem, taking out these policies will definitely result in paying higher premiums than usual.
So, the essence of all the points discussed above is that one should not always be lured in by offers that merely advertise the provision cheap health insurance for private individuals, Instead, one should pay attention to the quality of insurance coverage they offer at the cheap insurance rates. Purchasing health insurance, like any other insurance policy, also requires thorough research and study. As this is a health issue; Nowhere is it worth worrying about just money. Quality service always comes at a price, so one should be smart enough to look for policies that offer affordable and quality health insurance.
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