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