How to Get a Low-Cost Health Plan

The United States government has provided a variety of methods and programs to assist American citizens in making the most of their health insurance benefits. ”Obamacare” is one of these programs that offers health insurance to both high-income and low-income Americans. However, according to research by the Washington, D.C.-based business Avalere Health, the cost of one Obamacare plan, the silver plan, would increase by around 34% in 2018. The monthly cost for the silver plan, which offers enough coverage, is a bit expensive. Those who cannot afford to pay such high rates need not fret, as there are other plans and a subsidy program that provide affordable health care.

While searching for affordable health insurance plans, one should be well-versed in health insurance policies. Shelby George, Senior Vice President of Advisor Services at Manning & Napier, urges consumers to constantly consider the extent to which a company's expenditures are covered. In other words, one should not be swayed by the advertised low prices, but rather consider how much coverage the insurance firms provide for those low rates.

Here is an explanation of the different plans, as well as a discussion of whether it is possible to get "free" health insurance in order to find the cheapest and best health coverage.

Subsidies and Additional Health Insurance

In an effort to provide all Americans with health insurance coverage, the government has offered a number of beneficial schemes, one of which is "subsidies." Simply put, a subsidy is the amount paid by the government to insurance firms for providing health insurance to people with low incomes. This means that low-income people will be able to get health insurance benefits through subsidies that insurance companies would normally turn down for any other short-term policy claim.

Subsidies are available to individuals with incomes of around $48,000 and families of four with incomes of approximately $98,000 or less. Subsidies make it possible for those with low incomes to get affordable health coverage. Still, the Trump administration is more likely to change or get rid of all of these Obamacare-backed subsidy programs.

Regarding other health insurance policies, a silver plan will pay up to 70% of a person's health care expenses, while a bronze plan will cover up to 60% of the costs, leaving the remaining proportion to be covered by the individual. When comparing these two plans, if one wants to spend absolutely no money out of pocket, selecting the bronze plan with a subsidy will be of great assistance. Those who cannot afford to pay out of pocket will be able to get affordable health insurance via the bronze plan's 60% coverage and subsidies covering the remaining 40%.

Which types of policies are available?

The first step in acquiring the most affordable health insurance is to determine which coverage best meets one's requirements. Here is a list of two possibilities, along with short descriptions of each, so that one may choose the most suitable option.

1. Short-term insurance

A short-term policy is for those who are ineligible for subsidies. In other words, this coverage is recommended for those for whom health insurance has become "unaffordable." Unaffordable is defined here as a cost that exceeds 8 percent of a person's or family's yearly income. According to Nate Purpura, Vice President of Consumer Affairs at ehealth.com, individuals with incomes between $49,000 and $69,000 and families with incomes between $99,000 and $129,000 should choose short-term insurance coverage.

Therefore, if one is unable to pay exorbitant premiums and get health insurance, getting short-term coverage is strongly advised. However, there are no consequences for those who choose not to get health insurance. On the other hand, it's good for people to have some financial protection that they can use when things don't go as planned.

Listed below are a few significant aspects of short-term policies:

These plans are typically valid for up to three months and may be extended to nine months (with a three-month renewal period).
Under the new guidelines suggested by President Trump, all people would be required to carry short-term coverage. This regulation has not yet been enacted, but it will shortly be in force.
These insurance policies do not cover pre-existing conditions, i.e., diseases that a person already has at the time of policy application.
If such pre-existing conditions were to be included in the policy, the rates would climb significantly.
Unlike Obamacare, short-term plans do not cover childbirth, injuries caused by abuse, or mental health care.
With short-term coverage, one may access adequate health care services for a monthly cost of around $100.
Even though there aren't many coverage options, this policy has a lot to offer individuals and families who want cheap health insurance.

2. Policy Combination or Combined Policy

Traditional policies, or plans with higher premiums, will cover all costly hospital expenses in the event of dangerous diseases or accidents. In contrast, short-term policies will only cover routine medical visits. However, if one desires to take advantage of both policies, i.e., get coverage for both dangerous diseases and common or regular illnesses (such as a cough, cold, or fever), insurance firms now offer combination plans.

In the past, individuals had to apply for both plans individually in order to be covered in both instances. This made it difficult for insurers to compute separate percentages and quantities; as a result, the concept of combination plans was developed, enabling individuals to get both benefits under a single policy. However, as obvious as it may appear, opting for this insurance would result in much higher premiums.

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