For families today, health insurance is every bit as important as food on the table and a roof overhead. Without medical coverage, just one hospital visit can result in a sky-high medical bills and a trip to bankruptcy court. Unfortunately, finding affordable health insurance can be difficult. Even with the recent federal health reform, low cost health insurance may not be readily available for many families for years to come.
In the meantime, going without medical coverage is a risky proposition, especially for those with children. However, there are several options to finding free health insurance or low cost plans.
Group Insurance Through an Employer
The cheapest health insurance on the market comes from group insurance plans. These plans are able to reduce health insurance premiums by spreading their risk among a large group of policyholders. Even if one member of the group should get sick, chances are other policyholders won’t make a claim. Their premiums offset the losses an insurance company incurs from paying medical expenses for someone with a chronic or catastrophic illness.
Nearly two-thirds of Americans obtain their insurance through employer-sponsored group plans. In addition to the reduced premiums that are a natural part of group insurance, many employers pay a portion of the premium amount to further discount health insurance costs for their employees.
For families who are employed where health insurance is not a benefit, some businesses offer health benefits to part-time employees. These companies include Starbucks, Whole Foods and Nordstrom. Picking up a second part-time job for health benefits may be a wise investment.
Private Health Insurance and Health Savings Accounts
If group insurance is not possible, families may want to do a health insurance comparison to find an individual plan. Many websites and companies offer free online health insurance quotes. When reviewing the benefits, look for coverage caps, deductibles and co-payment amounts. While the federal health reform will soon eliminate annual and lifetime coverage caps, many discount health insurance offer few benefits for hefty premiums.
Some of the most affordable health insurance for self-employed individuals and families are plans combined with a health savings account. These plans are also sometimes referred to as catastrophic health insurance. The deductibles are very high and most expenses are paid through the health savings account. This account lets individuals use tax-free dollars to pay for medical costs. While policyholders pay for routine expenses themselves, the catastrophic health insurance plan provides protection in the event someone should have a serious illness or become hospitalized. These plans are often a good choice for individuals and families that are generally healthy.
Low Cost Health Insurance Through Government Plans
In 2014, the government will offer health insurance exchanges that will provide discount health insurance options to Americans earning up to 400% of the federal poverty limit. While those exchanges are still a few years off, the government does offer other low cost health insurance options, particularly for seniors and children.
Medicare is the government’s senior health insurance program. In addition to those 65 years of age and older, certain individuals are eligible for Medicare. This medical insurance is currently offered through a traditional insurance plan as well as Medicare Advantage, an HMO. Under the health care reform, the Medicare Advantage option will be phased out. While Medicare offers broad benefits, many recipients choose supplemental health insurance through a Medigap plan to fill holes in their benefits.
On the other end of the spectrum, each state is required to offer a Children’s Health Insurance Program (CHIP). These programs offer low cost health insurance to working families. Each state may have slightly different eligibility requirements and benefit levels. For further information on the program, call the CHIP hotline at 1-877-KIDS-NOW (543-7669).
Free Health Insurance Through Medicaid
Finally, for families that have run out of other options, each state runs a Medicaid program. To receive this free health insurance, families must meet certain income and asset guidelines. In some states, if a family earns too much money, they may be able to receive Medicaid with a spend-down. The spend-down is the equivalent of a monthly deductible that must be met before medical coverage begins.
While the federal government requires that states offer Medicaid, each state has some flexibility in the benefits and services it offers. Information about the Medicaid program, as well as application forms, may be found through state social services or human services offices.
With the passage of federal health reform in early 2010, the future of private health insurance will change. Families will have new options and cheap health insurance is expected to be more readily available as the government begins offering subsidies in 2014. However, in the meantime, American families will have to continue to seek out medical coverage from group plans, individual health insurance or government programs.
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Maryalene LaPonsie - Maryalene LaPonsie has been writing professionally for nearly 15 years on topics including religion and politics, education and ...
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