How Can I Find Affordable Health Insurance?

To ensure that Americans can fully benefit from their health insurance, the US government has been announcing several programs and proposals. One such program, known as "Obamacare," offers health insurance options to Americans with high and poor incomes. However, according to a report from the Washington, D.C., company Avalere Health, the cost of the silver Obamacare plan will increase by nearly 34% in 2018. The monthly costs for the silver plan are a tad costly yet it offers a respectable coverage policy. For people who are unable to pay such high premiums, there are other policies and a subsidy program that will offer affordable health insurance options.

One should have a thorough knowledge of health insurance policies before looking for affordable health insurance coverage. Shelby George, senior vice president of advisor services at Manning & Napier, urges customers to constantly consider the amount of coverage offered for the fees a provider offers. In other words, instead of getting swept up in the low prices, one should pay attention to the extent of coverage that the insurance companies are offering in exchange for their low prices.

Here is an explanation of the various policies that are offered and a description of whether one can receive insurance for "free" to obtain the finest affordable health insurance.

Health insurance plans and other financial aid:

One of the many helpful proposals put up by the government to provide health insurance to all Americans is the concept of "subsidies." In plain English, a subsidy is a sum that the government pays insurance firms to enable them to offer health insurance services to those with low incomes. As a result, low-income individuals will be able to take advantage of health insurance benefits through the utilization of subsidies, which insurance companies would otherwise deny on any other short-term policy claim.

Those who qualify for subsidies are those with incomes of less than $98,000 for a family of four and less than $48,000 for an individual. Therefore, with the aid of subsidies, those with modest incomes can benefit from good, affordable health insurance. However, the Trump administration is more likely to change or completely cancel these subsidy plans that were included in the Obamacare plan.

Speaking of other health insurance plans, a bronze plan will only cover up to 60% of a person's medical expenses, while a silver plan will pay up to 70% of those expenses. The remaining amount will need to be covered out of pocket. Choosing a bronze plan with a subsidy will be quite beneficial if one wants to spend absolutely NO money out of their own pockets when comparing these two plans. The 60 percent coverage of the bronze plan and the remaining 40 percent supported by subsidies will make health insurance more affordable for people who are unable to pay out of pocket.

What Sort of Policy Can One Select?

Knowing what type of policy best meets one's needs is the first step in obtaining the finest affordable health insurance. Here is a list of two possibilities with brief descriptions so that you can pick the one that fits you best.

1. Short-Term Policy:

Those who are not eligible for subsidies should purchase a short-term policy. In other words, it is suggested that customers choose this coverage if getting health insurance becomes "unaffordable" for them. In this context, "unaffordable" is defined as a cost that surpasses 8% of a person's or family's annual income. Nate Purpura, Vice President of Consumer Affairs at eHealth.com, claims that people with incomes between $49,000 and $69,000 and families with incomes between $99,000 and $129,000 should choose short-term insurance policies.

Therefore, choosing a short-term policy is strongly advised if one finds it impossible to pay large rates and obtain health insurance. If one chooses not to have health insurance, there are no fines. On the plus side, though, having financial security that will help in difficult situations is good for the people who will be using it.

Here are a few important points about short-term policies:

The typical duration of these plans is 3 months, however, they can be extended to 9 months (in 3 months renewal).
All people will be required to have a short-term policy under the new regulations suggested by President Trump. This regulation hasn't been passed yet, but it will shortly take effect.
Pre-existing conditions, or illnesses that a person has before applying for a policy, are not covered by these policies.
The prices will rise significantly if one wants to incorporate such pre-existing conditions in the coverage plan.
Contrary to Obamacare plans, short-term insurance does not pay for costs associated with prenatal care, abuse-related injuries, or mental health treatment.
With a short-term policy, one can access respectable medical services for a monthly premium of roughly $100.

Overall, despite the limited alternatives for coverage it offers, consumers looking for affordable individual or family health insurance will benefit greatly from this program.

2. A combination policy or set of policies

In the event of risky illnesses or accidents, traditional policies, or in other words, plans with higher premiums, will give coverage for all the expensive hospital expenditures. However, short-term insurance only covers standard medical visits. However, insurance firms now provide combo packages if a person wants to take advantage of both policies' benefits, i.e., acquire coverage for both risky illnesses and common or routine ailments (such as cough, cold, or fever).

To cover both situations in the recent past, consumers used to apply for both plans individually. As a result, the idea for combo policies emerged, enabling people to take advantage of both benefits within a single policy. This made it easier for the insurers to calculate various percentages and amounts. However, as obvious as it may appear, choosing this insurance would undoubtedly result in higher premiums than usual.

The overall message of all the previously discussed factors is that consumers shouldn't always be drawn to offers that just advertise offering folks cheap health insurance; instead, consumers should look at the level of coverage they give for the low insurance rates. Similar to buying other insurance products, shopping for health insurance necessitates extensive research and study. Since one's health is at stake, it is unworthy to focus just on financial concerns. Great service always has a cost, thus one should be astute enough to search for policies that provide affordable and high-quality health insurance coverage.