The government of the United States has been offering several ideas and strategies in order to assist American inhabitants in enjoying the full benefits of their health insurance. In the United States, people with high incomes and people with low incomes both have access to health insurance options thanks to a program called “Obamacare.” However, according to a report published by a company based in Washington, DC called Avalere Health, the cost of one of the plans offered by Obamacare, which is referred to as the silver plan, will increase by approximately 34 percent in 2018. The silver plan’s monthly premiums are somewhat steep, but it offers sufficient levels of coverage and protection. Those who are concerned because they lack the financial means to pay such high premiums need not be because there are other policies available in addition to this one as well as a subsidy program that will provide health insurance at a reduced cost.
It is important to have a solid understanding of health insurance policies before searching around for affordable health insurance coverage. Shelby George, Senior Vice President of Advisor Services at Manning & Napier, urges consumers to constantly look for how much coverage is available for the costs a firm provides before making a purchase from that business. To put it another way, an individual need not to let themselves be swayed by the low prices but rather ought to center their attention on the amount of coverage that the insurance companies are providing at the low rates that they advertise.
The purpose of this article is to provide an explanation of the various health insurance policies that are currently available, as well as a description of whether or not it is possible to obtain insurance “for free.”
Financial assistance and various health insurance plans:
One of the many helpful schemes that the government has presented is that of ‘subsidies,’ with the intention of ensuring that all citizens of the United States have access to health insurance coverage. A subsidy is, in layman’s terms, the sum paid by the government to insurance firms in order for persons with low incomes to be eligible for health insurance services offered by the insurance companies. This means that people who fall into the low-income group will be able to enjoy health insurance benefits through subsidies, which insurance companies would otherwise reject on any other short-term policy claim. These benefits include preventative care, hospitalization, and prescription drug coverage.
Those who are eligible to get subsidies include an individual with an annual income of approximately $48,000 and a family of four with an annual income of somewhere less than $98,000. As a result, those with modest incomes can benefit from good health insurance at an affordable price thanks to the assistance of subsidies. On the other hand, the Trump administration has a greater chance of modifying or even scrapping the various subsidy programs that were included in the Obamacare plan.
A silver plan will cover up to 70 percent of a person’s health care charges, while a bronze plan will cover up to 60 percent of the costs. The remaining percentage of charges will have to be paid out of pocket by the individual. When referring to other types of health insurance plans, a silver plan will cover up to 70 percent of a person’s health care charges. Now, comparing these two plans, if an individual wishes to spend absolutely NO money out of their own pockets, then selecting a bronze plan along with a subsidy will be of great assistance. This is because the subsidy will cover 100% of the cost of the plan. The bronze plan’s coverage of 60 percent, with the remaining 40 percent covered by subsidies, will benefit people who are unable to pay for their own health insurance out of pocket. This will allow them to take advantage of affordable health insurance.
Which Types of Policies Are Available to Pick From?
To begin the process of finding the most affordable and comprehensive health coverage, one must first become knowledgeable about the types of policies that are available. Here is a rundown of two choices, each of which is given a concise explanation, so that one can pick the one that works best for them.
1. A Short-Term Policy: A short-term policy is designed for those who do not meet the requirements to receive government subsidies. To put it another way, it is recommended that individuals for whom purchasing health insurance becomes “unaffordable” go with this particular policy. When used in this context, the term “unaffordable” refers to a cost that is greater than eight percent of the annual income of a person or family. Short-term health insurance policies are recommended for people with incomes in the range of $49,000 to $69,000 for individuals and between $99,000 and $129,000 for families. In order to qualify for short-term policies, individuals’ incomes must fall within this range.
In light of this, purchasing a health insurance policy for a shorter period of time is strongly advised for anyone who struggles to meet the high premium payments required to maintain coverage. On the other hand, if one does not choose to have any health insurance, they will not be penalized in any way. On the other hand, it is beneficial for the individuals themselves to have some form of financial protection that will benefit them in the event that they are placed in unfavorable circumstances.
The following is a list of some important information regarding short-term policies:
These policies typically have a maximum duration of up to three months but can be extended all the way up to nine months (in 3 months renewals).
All people will be required to have a short-term insurance plan in accordance with the new regulations that President Trump has proposed for the country. Nevertheless, this regulation has not yet been enacted but is expected to be so very soon.
These types of policies do not offer coverage for pre-existing illnesses, also known as diseases that an individual is currently afflicted with at the time of policy application.
If one wants to include such pre-existing illnesses in the coverage plan, then the premiums will need to be significantly increased to accommodate this.
Short-term policies, in contrast to those offered by Obamacare, do not cover the costs of obstetric care, injuries sustained as a result of abuse, or treatment for mental health conditions.
With a short-term policy, an individual can get access to respectable medical services for a premium of about one hundred dollars every month.
Overall, despite the limited coverage options it offers, this policy offers great benefits to those seeking affordable health insurance for individuals or affordable health insurance for families. This is true even though the coverage options are limited.
2. Combination of Policies, also known as a Combined Policy:
In the event that a person sustains a potentially life-threatening illness or is involved in a potentially life-threatening accident, traditional policies, also known as plans with higher premiums, will provide coverage for all of the expensive medical bills. On the other hand, selecting short-term plans will allow you to be covered for routine doctor visits. But let’s say that somebody wants to take advantage of everything that both policies have to offer—namely, coverage for both serious and everyday illnesses—at the same time (like a cough, cold, fever). In such a scenario, modern insurance companies frequently provide customers with the option to purchase combo packages.
People used to have to submit applications for both policies individually in the recent past in order to have coverage for both scenarios. Because of this, it became difficult for insurers to calculate different percentages and amounts. As a result, the plan for combo policies was developed, which enables individuals to take advantage of both benefits within the context of a single policy. Nevertheless, as obvious as it may appear, opting for these policies will result in one’s having to pay higher premiums than is customary.
The most important takeaway from all of the points that have been presented thus far is that people should avoid falling prey to deals that merely advertise the availability of affordable health insurance for individuals. Instead, one ought to look at the level of coverage that is provided in exchange for low insurance premiums and see how good it is. When shopping for health insurance, just like shopping for any other type of insurance policy, you need to do extensive research and study. Because this is a problem that affects one’s health, worrying about money is not something that should be done. There is always a price to be paid for quality service; therefore, an individual should be astute enough to look for policies that provide health insurance plans at an affordable cost.