So, your looking for cheap insurance or affordable insurance. One of the problems we face is there is no such thing as cheap insurance or affordable insurance. Our country is in a healthcare crisis where the costs of healthcare are extremely high and border on being outrageous. More than 50 million Americans have no health insurance and approximately 120 million Americans have no dental insurance.
Many countries that do have nationalized healthcare like Canada, the United Kingdom, and France are seeing their national healthcare systems failing and people starting to buy private insurance as the healthcare system provided to them by their country is ineffective at providing them quality timely healthcare.
There are several types of health insurance plans that you can purchase which are more affordable than the typical major medical health insurance plan, but remember, there is a reason why they cost less money than a normal major medical insurance plan.
High Deductible Health Insurance Plan
A high deductible health insurance plan works by providing comprehensive major medical insurance, but it has a high deductible before health benefits kick in. A person on a high deductible health plan may have a deductible starting at $2,000 or as high as $10,000. This typically means that the person will have to pay the deductible before health benefits start and kick in. Some of these health plans will allow copays for doctor office visits and the emergency room, but for hospitalization or planned outpatient surgery the patient must pay the deductible first before the insurance company pays anything. These high deductible health insurance plans typically are purchased to protect a person from catastrophic and expensive medical costs, such as being hospitalized or needing an expensive operation. These plans are good for young people who are healthy, as they are typically inexpensive. They are also good for middle aged and older people who cannot afford a health insurance plan with a low deductible. It is better to have some health insurance even if it is only for catastrophic health events than to have nothing at all.
Health Savings Account - HSA
A Health Savings Account is a high deductible health plan as described above, but which does not allow copays for the doctor’s office or emergency room. A patient must meet their deductible for ALL their healthcare expenses prior to the insurance company paying benefits. Health Savings Account are really a benefit for people who are healthy or believe they will be healthy and wont’ utilize a lot of medical expenses during the year. This is because you are allowed to contribute money to you health savings account tax free, and if you do not spend the money you are able to roll it over year after year and build up a very large healthcare savings account over time.
Mini-medical or Limited Medical Insurance
Mini-Medical Plans or limited medical insurance is low cost insurance. These types of plans do not cover anything expensive or catastrophic, and are meant to really cover day to day expenses, such as going to the doctor or getting a prescription.