When it comes to health insurance, you want to find the best plan that provides coverage for an affordable price. While many people think that all health insurance is expensive, there are several options available today that can help you save money on your monthly bills. In this post, we’ll look at what types of insurance plans are available and how they differ in cost.
What are the different types of health insurance?
The first step to finding the right health insurance is understanding what it is. Health insurance is a contract between a health insurance company and an individual or group. There are two main types of health insurance: private and employer-provided.
Private insurance can be expensive but also has great benefits, like not paying for hospital visits or doctor visits out of pocket. Employer-provided insurance often costs less than private plans because employers have negotiated lower rates with providers due to their large membership base.
What Affects The Cost of Health Insurance?
- Premiums are based on your age, location, and health history. The cost of the plan is also based on the amount of coverage you want. For example, if you choose a plan with lower deductibles, it will cost more per month than a plan with higher deductibles.
- Your income affects the cost of health insurance: If you are unemployed or work part-time or seasonal jobs, then there may be ways that employers can help pay for your premiums through an employer-sponsored group plan (ESI). ESI plans are also sometimes called “cafeteria” plans because employees can use pre-tax dollars to pay for them. If this applies to you then talk with someone at work about finding out if they offer any assistance with paying for premiums through an ESI program.
- How many dependents you have also affects your total cost of your insurance as well as how much budget-friendly options like Obamacare cost.
Low-Cost Insurance, What Are My Options?
There are several options for low-cost health insurance. The marketplace is a good place to start, providing access to many affordable plans. Medicare is another option if you’re 65 or older; however, it only covers certain services and has some limitations in terms of what it covers. Short-term insurance may be an option if you have a gap in your coverage or need temporary health care while waiting for full-time employment benefits to kick in at work (if they do).
Other types of plans include company-sponsored group health insurance plans with varying levels of premiums and deductibles; non-profit organizations like churches and synagogues that offer group health care plans; and self-funded employer trusts which provide employer contributions toward individual policies purchased through an insurer but owned by employees themselves.
The Affordable Care Act, aka “Obamacare”
The Affordable Care Act (ACA) is a federal law that requires all Americans to have health insurance. It also offers tax credits to help people pay for insurance, and it prohibits insurers from denying coverage based on pre-existing conditions. If you don’t have an offer of employer-sponsored coverage or other forms of public assistance, the ACA may be your best bet for finding low-cost health insurance.
The ACA covers essential benefits, including:
- Ambulatory patient services (outpatient care)
- Emergency services
- Hospitalization
Medicaid
If you fall under a certain percentage of the federal poverty line you may qualify for government sponsored health insurance called Medicaid. Each state has its own name for there Medicaid program and you’ll want to research your specific states guidelines before applying. As of 2023, the federal poverty limits for medicaid qualification is $14,580 for a single adult person, $30,000 for a family of four and $50,560 for a family of eight.
Medicare
Similar to Medicaid, Medicare is a government sponsored health insurance plan for citizens over the age of 65+. Medicare typically only covers about 80% of your medical care costs, so you’ll still need to supplement your coverage or pay out of pocket.
Short-Term Coverage
If you are a healthy and rarely see the doctor, you may not want to spend hundreds a month of a comprehensive plan. Short-term coverage, also known as catastrophic coverage can cover you in the case of a serious medical emergency.
Short-Term coverage is less expensive than a traditional plan because it covers fewer services and doesn’t typically cover traditional benefits like prescription drug coverage.
Insuraway Can Help You Find Low Cost Coverage
If you are looking for low cost options, Insuraway can help you find a plan that fits your health care needs as well as your budget. Call us today to find plans for as low as $10/month.
