| Health insurance can be a tricky subject, | | | | costs to be spread out and decreased on an |
| particularly when you're talking about | | | | individual basis. |
| individual health insurance, and | | | | |
| understandably so. The Government is | | | | Also, with group plans, if you get sick while |
| constantly changing the rules of the game, | | | | in the group and decide to leave the company, |
| and most people are on company policies that | | | | there's a good chance you will have a very |
| offer limited to no plan options or | | | | difficult time finding a provider to cover |
| flexibility. Therefore, people often don't | | | | you. However, with individual plans there is |
| see the need to understand their insurance | | | | no need to worry about losing the policy due |
| plans and options available to them. However, | | | | to job loss, and individual plan benefits and |
| this is certainly not the case. Like anything | | | | coverage cannot be cut or dropped. |
| else, the more you understand the better off | | | | |
| you are and the more money you can save. With | | | | Lastly, group plans are limited to what your |
| that in mind, we'll take a look at the top 5 | | | | company is offering in regards to carriers |
| most misunderstood health insurance topics. | | | | and types of plans like HMO and PPO. If you |
| | | | get an individual plan, you have the |
| Different brokers have different prices? | | | | flexibility to shop around as much as you |
| | | | please. This allows great flexibility and |
| A broker is going to charge me more by adding | | | | customization. |
| a commission, right? | | | | |
| | | | Individual policies are cancelable? |
| Wrong! Many people believe that health | | | | |
| insurance brokers have the ability to | | | | If I purchase an individual health insurance |
| negotiate on price, or offer cheaper prices | | | | policy and get sick, the provider can simply |
| than the competition. This is not the case! | | | | cancel, right? |
| Health insurance policy premiums (prices) are | | | | |
| regulated by each state, and are the same | | | | Individual/family policies must be guaranteed |
| across the board. However, different brokers | | | | renewable. The only ways you can lose your |
| may be able to find alternative plans, or | | | | individual/family policy is if you do not pay |
| carriers that are less expensive. For | | | | your premium or if the insurance company goes |
| example, broker A may quote you on a PPO plan | | | | bankrupt. As long as the insurer's financial |
| from insurance carrier X. However, broker B | | | | stability is rated at least A (or Excellent) |
| may quote you on an HMO plan for insurance | | | | by A.M. Best or one of the other independent |
| carrier Y. Broker A's plan will be | | | | insurance company rating agencies, then |
| considerably different than broker B's plan. | | | | bankruptcy is unlikely. However, plans that |
| The trick is to find a broker that quotes | | | | are not insurance such as medical discount |
| multiple insurance carriers and is well | | | | programs or lump-sum payment critical illness |
| versed in each carrier's plans. You can | | | | plans are not regulated the same as |
| filter out the inexperienced brokers by | | | | individual health insurance. |
| looking at their websites and seeing how many | | | | |
| carriers they offer. Then when speaking to | | | | Premiums are too expensive on individual |
| the broker ask them how many different | | | | plans? |
| carriers and plans they quote. | | | | |
| | | | Depending on your age and health, individual |
| Group health insurance plans are better, | | | | health insurance plans with good benefits are |
| right? | | | | often under $100 per month. However, if you |
| | | | are getting quotes which are more than you |
| Individual and group plans both have their | | | | can afford, try raising the deductible or the |
| respective positive and negative aspects. But | | | | maximum out-of-pocket cost a bit. This is an |
| if your company offers a group health | | | | easy way to lower the monthly premium. Also, |
| insurance plan, that is the best option | | | | if you are working with a broker they may be |
| right? Well, maybe, but probably not. Here's | | | | able to gets quotes for alternative plans or |
| why: | | | | lower cost carriers. Picking a good broker is |
| | | | always a smart move! |
| Group health insurance plans often are more | | | | |
| expensive if the company or group sponsor is | | | | I'm healthy, I don't need health insurance |
| not paying a major portion. This is due to | | | | |
| the ever increasing costs of group plans and | | | | A friend of mine recently took a skiing trip |
| the dramatic effect an unhealthy person in | | | | to Big Bear ski resort in Southern |
| your company can have on the group's | | | | California. She took a fall and broke her |
| premiums. Say for example your company has | | | | forearm in three places, and ended up with a |
| 500 employees, if one of those employees gets | | | | hospital bill near $30,000. Health insurance |
| dramatically ill, this will increase the | | | | is a must for everyone, even you. The best |
| premiums for the remaining 499 employees due | | | | time to get coverage is when you are healthy. |
| to increased costs. But when the law of large | | | | This is because you have your choice of |
| numbers comes into play, as with individual | | | | carriers and plans while being able to lock |
| policies, your group of individual policy | | | | in a good rate. |
| holders is much larger, which allows the | | | | |