4 Biggest Mistakes You Could Make When Purchasing Health Insurance

Are you soon heading out looking to purchase health insurance? Well, if that is the case, you will do well to know that the insurance purchase decision is a major one – and definitely not one you should take lightly. This assertion comes from an observation of the nasty experiences that people who purchase health insurance without understanding the enormity of the purchase decision tend to go through. In a nutshell, the experiences of those people range from what can be termed as frustration to what can be termed as major regret. Looking through their often bitter experiences, it tends to turn out that they find themselves in such predicaments after having made fundamental mistakes when purchasing the health insurance. So we have collated and researched on those mistakes, and now we present these five mistakes that you should aim never to make when purchasing insurance. This we do in the hope that you will take heed and save yourself from the frustration a poor health insurance purchase could drive you into:1. Purchasing health-insurance from financially weak insurers: it is not for nothing that people considering buying health insurance are advised to check out the financial health of the insurers they are considering buying the policy from. It is worth noting that your insurance cover is as good as the financial strength of the company providing it. Yes, there are mechanisms, in most jurisdictions, to protect the interests of the clients in the event of a health insurer going down. But more often than not, it tends to take a while before these mechanisms can kick in – during which time you would be virtually uncovered. Purchase health-insurance from financially strong insurers only.2. Purchasing insurance from insurers who are known to ‘cut corners:’ the relationship between a health insurance provider and their client is one that is largely built on trust. It therefore becomes necessary to ensure that you only purchase health-insurance from insurers who have good reputations; not insurers who are known to cut corners and shift goalposts against their clients, especially when it comes to claims times. Check out what the previous client experiences with the various insurers you consider buying health insurance from have been like.3. Purchasing the cheapest health insurance cover you can get, without checking coverage keenly: remember, in order to make the cheap pricing a possibility, some major compromises in terms of coverage have to be made. While it is advisable for you to go for the most affordable health-insurance cover you can get, you should also look at it keenly to establish what exactly you will be getting in it. Sometimes, you find cheap health insurance policies that have so much stripped out of them (in a bid to make them affordable) that they are pretty much useless to the people who buy them.4. Purchasing health-insurance without reading the contract well: it is important to note that when purchasing health-insurance, what you buy is essentially the contract. This makes it essential for you to look at the health insurance contract keenly (including in the ‘fine print section’), and make an effort to understand the clauses in it and their full implications. In things like these, the devil is always in the details. But more important than the reading is having the willpower to back out of what turns out to be a bad deal.It often happens that people indeed read their health insurance contracts, notice the badness of the deals -and then find it hard to back so as not to ‘upset’ the often suave salesmen. Don’t fall for this trap. If a close reading of the health-insurance contract reveals that it is a bad deal, back out of it immediately.

Health Insurance For Family & Individuals

55 percent of Americans wise enough to have health insurance have received it via a plan set up by their employer. A further 25 percent have a government plan such as Medicaid or Medicare to thank. If you have an employer that does not provide you with health insurance, or you are self-employed, then you will need to get an individual health plan in order to satisfy your insurance needs. If you have stumbled across an article of this type online, then you are clearly on the lookout for health insurance that you can afford.Being approved for individual coverage is far more difficult than its group insurance counterpart, as every policy will be underwritten separately, meaning that your medical history will be put under the insurance company’s microscope.Remember, insurance companies are the antithesis of a non-profit organization. They insure you in the hope that what you pay them over the course of your lifetime is more than what they have to give you. With this in mind, it is pretty obvious why they will reject most applicants with previous medical problems. Alternatively, they may insure you with the proviso that they will not be liable for any medical issues you have had before they insured you. They achieve this by placing what is known as a ‘rider’on your policy. Clearly then, it is better to get health insurance while you’re young, and relatively healthy.As the risk is spread in group policies, insurance companies have no problem allowing people with prior medical problems on board. If a member of a small group gets stricken with a serious illness, then all members will suffer in the form of higher premiums. Therefore, bigger groups are satisfactory to all parties.When you do decide to apply for medical insurance, disclose all medical problems, no matter how small or insignificant they may seem. If you fail to do this, then you are leaving yourself open to a controversial process known as ‘rescission’. This is when an insurance company has reviewed your policy and medical records, (they do this thoroughly) and found that you have not told them about a particular ailment. This gives them the right to cancel your policy, usually at a period in your life when you desperately need it.While you may think that insurance companies use scaremongering tactics in order to get you to buy insurance, it is of critical importance that you insure your family and yourself against harm. More than 60 percent of bankruptcies are caused by medical bills. Being self-employed leaves you extremely open to financial trouble as you are only one medical problem away from losing all you have worked for. Over a six year period, more than 145,000 Americans perished due to lack of health insurance, they either had no medical care administered, or else they received it far too late.If you are self-employed, and therefore haven’t got group health insurance, your options are limited due to companies refusing to grant you insurance, because of prior medical problems or the dreaded rescission in a bid to raise profits, yet there are still possibilities.First of all, you need to take account of, and manage your risk. If a serious medical problem occurs, then you should know how much debt is acceptable for you to be in as a result. With this in mind, you should purchase a policy with a high-deductible. This will ensure that you are covered against major illnesses by the insurance company because you are taking care of the minor problems yourself.Another way around this tricky situation is having the partner of the self-employed individual procure employment at a company that offers medical insurance. While it will more than likely only take care of the employee’s health insurance and childcare benefits, it would still shield you somewhat from a major illness.Are you Unable to Get Privately Insured?There are some 35 states that accept high risk health insurance cases who have been rejected by private insurance companies. This is the case in Minnesota, where the plans are offered at a reasonable price, though still above what one would pay for private medical insurance. These plans vary quite a lot depending on the state. Minnesota has the ability to provide this insurance because it has had the plan funded in some way by other companies who provide health insurance in the state. Other states are not so fortunate, with some being badly under-funded, and others having to shut down the program entirely due to bankruptcy.

Texas Health Insurance Crisis: Who Will Get Help In September?

For 20 years, Texas has been the worst state in the nation for protecting residents through access to medical care. A higher percentage of residents have had to survive without health insurance in Texas than in any other state, but September will bring new relief to help the public pay for Texas health insurance plans.Over the last five years, Texas health insurance premiums rose by a whopping 40 percent. That was 10 times faster than household income rose for Texas residents during the same period. With the cost of health insurance soaring beyond reach for many working people, families were hit hard. Of the uninsured in Texas, more than 80 percent are in families supported by at least one working member. Although three-fourths of them have incomes above 200 percent of the federal poverty level, health insurance has remained out of reach.As one in four Texas residents (nearly six million people) were trying to stay healthy in the absence of any kind of health insurance, President Obama signed the Patient Protection and Affordable Care Act into law in March 2010.How Will Health Insurance In Texas Change In September?Both young and old will benefit from the Affordable Care Act. This law includes provisions for children who have been excluded from coverage because insurers did not want to accept the risk of claims for known health problems.Insurers will be required to cover everyone under the age of 19, even when they have known health problems, as of September 23, 2010. The new provision will apply to health insurance plans that are “grandfathered in”as well as to new group plans, self-insured plans and new individual plans. It applies to anyone under the age of 19 regardless of whether they are employed or married.Texas residents over the age of 19 with known health problems have had access to coverage through a high-risk state pool. Now those who have not had health insurance for the last six months, will also have access to health insurance through a federal Pre-existing Condition Insurance Plan.Is An Ounce Of Prevention Worth A Pound Of Cure?That famous quote from Benjamin Franklin, “an ounce of prevention is worth a pound of cure,” will finally be put to the test this fall. New insurance plans, starting on September 23, must provide “recommended” preventative services without requiring you to cover co-insurance, co-payment or a deductible.With access to health screenings that are no longer cost-prohibitive, we can catch deteriorating health earlier to prevent suffering and save lives. Of course, it’s also cheaper to reverse health problems before they become life threatening, and that can help make health care accessible to more people by using healthcare dollars more effectively.How Does Healthcare Reform Increase Coverage For Children?On September 23, insurers have to allow children who do not have insurance through their own employment to be covered with their parents’ insurance until the children become 26. It doesn’t matter whether the kids are married or whether their parents’ have insurance.It also will not matter if children under the age of 19 have any known health problems. As of September 23, all health insurance plans in Texas, whether the policies are new or old, will no longer be allowed to deny coverage to sick children under the age of 19.How Does Healthcare Reform Aid Adults?It establishes an insurance pool, the Pre-Existing Conditions Insurance Plan or PCIP, for adults with known health problems who do not have coverage. This pool is designed to help uninsured adults get insurance at premium rates that are same as the standard market rates. That can end discrimination against those who are sick, and it means no more high premiums when you need medical care the most. Texas also has a state high-risk pool so if you are in that pool, you cannot transfer to the federal pool.Does your plan limit your lifetime benefits? That, too, will change on September 23. Insurers will no longer be permitted to limit lifetime benefits that are defined to be “essential health benefits,” such as ambulance service and hospitalization. More services may be added to the classification of essential benefits because the details are still being discussed. No new plans may be issued after September 23 with either annual or lifetime limits on benefits. Policies issued before that date will also have to be upgraded to remove annual limits by 2014.If you have been waiting for your chance to benefit from the protection of individual or family plans, this fall will mark the beginning of a shift in how our country, and your state, responds to the need for medical care.