There are common mistakes done by people with regards to availing individual healthcare insurance: (1) they don’t act on time and (2) by that time a situation occurs with regards to their health, they panic and buy too much insurance leading to over-compensation. There is some saying with regards to availing individual healthcare insurance: “have one when you don’t really need or want it because you may not be able to have one when you need it”. Individual healthcare insurance are easily availed by healthy individuals and normally cost lower premiums but to those which they call to have pre-existing condition having one insured would be difficult and costly. More and more people simply depends their healthcare insurance to the ones provided by their company. However they are not aware of the benefits that are entitled to them and at the same time it normally does not assess your healthcare condition are are normally done before availing individual healthcare insurance. Are individual healthcare insurance really important to be added in your daily budget?
Here are some facts you may have to know about the individual healthcare insurance.
- Insurance cover provided by your current health insurance plan. These are the ones which are provided by your current employer as your benefits. Normally, this type of healthcare insurance covers only minor ailments with minimum coverage. At this case, when you are faced to have major healthcare issues, you still have to shoulder a huge amount because the plan you are enrolled in is not obliged to help you out. Despite having higher premiums as compared to the ones in your company, Individual healthcare insurance offer bigger coverage once you need it. You just have to be particular with the policy on what it covers.
- Validity of your health insurance provided by your organization. Normally, the health insurance provided by your company stays as long as you are associated with the company. Once you leave the company, which can be due to change of job, retirement, of getting fired the coverage stops leaving you uninsured. Individual healthcare insurance coverage lasts as long as payments are made.
- Start early: Benefits of buying health insurance while young. Normally, availing an individual healthcare insurance at a young and healthy age provides you the privilege to pay at lower monthly premiums and enable you to save a lot. Monthly premiums are directly proportional to age. That is, the older you get, the higher the premiums you have to pay. At the same time, it is easier to enroll yourself to an individual healthcare insurance when you are healthy since most health insurance companies exclude those that have pre-existing conditions which are more prone as you age. With that, you are more ready when something unexpected come up affecting your health.
- Tax Benefits. With an individual healthcare insurance, you can be eligible to tax deductions under the section 80D of the Indian Income Tax Act. They can actually claim their deductions as they declare availing individual healthcare insurance for their own, for your spouse, children and parents.
More and more Americans are getting themselves insured as the affordable healthcare act takes its implementation and completion by year 2014. However, the process may not be as easy as you think. You have to consider many aspects surrounding the individual healthcare insurance you may wish to avail. You have to consider your current and future health status, the benefits and exclusions that a particular plan could offer, and the efficiency in which it can give you coverage are just some of the things you have to figure out.
If you are going to buy your own insurance, start your research with Web sites that explain the basics, such as healthinsuranceinfo.net, sponsored by the Georgetown University Health Policy Institute, and healthcarecoach.com, from the nonprofit National Health Law Program. They will help you understand the concepts and language of health insurance, which aren’t always easy to grasp, and should give you some sense of the questions to ask about any plan. Healthinsurance.org has useful information, but be aware that the site also provides insurance quotes from what it calls “carefully chosen partners who are in the business of selling health insurance.”
Then you can noodle around on Web-based brokerages that sell health insurance, including eHealthInsurance.com, HealthPlanOne.com, HealthInsurance.com andInsureMonkey.com. You can get estimates based on limited anonymous information. If you consider yourself among the healthy individuals, you can just opt to register online. But if you are among those with preexisting conditions, it would be better to register with an agent to fully assess your health needs.
Some consumers choose plans based solely on online research. But without guidance, it can be tough to fully understand the nuances of a plan and how it compares to other options. First, make sure you’re actually buying insurance, not some other product such as a discount card – one key way to tell is by checking with your state regulator that the company selling the product is considered a legitimate insurer. Be very careful about limited products such as temporary insurance, which last for a set period of time, since you may not be able to renew such a plan at the end of that period.
When you examine policies, don’t just look at premiums. Figure in other fees you will face, such as a percentage of the cost of doctor visits. Make sure you understand the policy’s annual out-of-pocket maximum, meaning the most you might have to spend in a year, since certain charges might not count toward the total. Some insurers require you to track your own spending and tell the company when you have reached your maximum, which might be a headache.
Read the fine print about your deductible, which is the amount of money you must lay out before your insurer starts paying. Some policies may have multiple deductibles, including one for each family member. Insurers may also not count certain costs toward the deductible.
Also, watch out for benefit limits, including annual and lifetime maximum payouts. So-called “mini-med” policies that cap their payouts can be dangerous, since you might end up paying bills for thousands of dollars if you have a major illness or surgery. Certain plans pay only a set fee per day of a hospital stay, which could leave you on the hook for thousands of dollars. Drug benefits don’t always include every medication. Some policies exclude maternity coverage, or don’t include care for pre-existing conditions.
And keep in mind that just because something isn’t in the “excluded benefits” section of your plan doesn’t mean it’s actually covered. For instance, insurers typically refuse to cover all treatments they don’t consider “medically necessary.”
Before making a final decision to purchase a policy, closely review the full plan explanation, sometimes called the certificate of coverage or the evidence of coverage, and seek help from the Web brokerage’s agents or other experts if you don’t understand it. Insurers may let you review this document only after you tentatively choose a plan and are accepted for coverage. Just be careful to avoid fraud and to have a healthcare insurance that will suit you best.