Health Insurance Options
When it comes to health insurance, most people receive coverage through their employer or their spouse’s employer. As a benefit, the company typically pays a portion of the premium. However, if your current employer does not offer health insurance, you may be considering purchasing coverage from a private health insurance company. In this case, you will be responsible for paying the full premium each month, making it important to choose a plan that offers adequate coverage at a reasonable cost.
One of the challenges of obtaining your own insurance is that you won’t have the convenience of selecting a plan during the onboarding process of a new job. Instead, you will need to research various plans and programs, enrollment periods, and costs to find the best insurance option for you and your family.
Health Insurance Eligibility
If you qualify, you will be able to earn tax credits and cost reductions while purchasing health insurance through the Health Insurance Marketplace. They are determined entirely by your income relative to the poverty line. In the past, in order to qualify for the cost savings, your income could not exceed 400 percent of the national poverty line. Without these discounts, the price may increase slightly, and there are other options to consider before purchasing through the marketplace. Options include acquiring health insurance from an insurance company directly, an insurance agent or broker, or an internet health insurance seller.
Reasons Why You Should Consider Your Health Insurance Choices
If you are unable to obtain insurance through other ways, purchasing private insurance through insurance firms may be the best choice for you and your family. The Health Insurance Marketplace has also become an option since President Obama signed the Affordable Care Act into law. You should or can be required to obtain your own insurance for a variety of reasons, including:
-
Being jobless
-
Reaching 26 years old (Under the Affordable Care Act, young adults can continue on their parent’s insurance until they are 26. They are required to acquire their own insurance once their birthday has passed.)
-
Having a freelance career (You may also be responsible for obtaining and offering health insurance to your employees if you run a business that employs full-time workers.)
-
Working sporadically
-
Retiring before you or your spouse
-
Your existing insurer drops you as a client
More than likely one or more of the aforementioned scenarios may play out throughout your lifetime so it is crucial that you understand what your private health insurance options are. As no one can anticipate the future, it is always unsafe to go without protection and insurance. Accidents occur frequently, and we’re not always to blame for them. The last thing you need to be worried about in a moment like that is how you are going to pay for medical expenditures.
What Health Insurance Choices Do You Have?
Now that you have a solid grasp of what health insurance is and why it is vital to carry it, let us look at a couple of various possibilities below:
-
Preferred Provider Organization (PPO) – Provides insurance coverage to policyholders via a healthcare network but allows for outside network services as well.
-
Health Maintenance Organization (HMO) – Provides insurance coverage to subscribers via a designated healthcare network.
-
High-Deductible Health Plan (HDHP): A plan that has a larger deductible but requires its members to pay lower monthly premiums.
-
Short-Term Insurance Policy – These policies typically provide temporary coverage to bridge insurance gaps while changing employment or waiting for other policies to start up. They typically have a 12-month maximum duration.