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Health Insurance
About Health Insurance
Individual Health Insurance
When purchasing health insurance on your own (not through your employer), it is called individual health insurance regardless of whether the coverage is for one person, two people, or a family. Individual health insurance requires underwriting as a part of the application process. As such, usually the application includes a health questionnaire and a medical records release. Due to the nature of the underwriting process, individual health insurance plans can take 2-4 week to be underwritten.
Unlike group health insurance, coverage through individual health insurance is not guaranteed. As determined by the underwritting process, an applicant can be approved at the base rate, approved at a higher rate, approved with an exclusion, or declined. If the applicant is approved at a higher rate, the new rate can be no higher than 85% higher than the base rate. If the applicant is approved with an exclusion, the applicant will be required to sign a form agreeing to the exclusion. An exclusion can be a body part, such as an ankle or knee, or a condition, such as asthma. If a policy is put in force with an exclusion, no medical expenses related to the excluded body part or condition will be paid.
Traditional Plans
You have probably heard of the term 80/20 when it comes to health insurance. This refers to what is called the coinsurance. The coinsurance determines how much of each medical bill will be paid by the insurance company and how much will be paid by the individual, after the deductible is met. In the case of an 80/20 plan, after the deductible was met, 80% of the each medical claim would be paid by the insurance company and 20% would be paid by the individual.
Traditional plans have deductibles ranging from $250 to $1000 per person. They usually also include copays for office visits and prescription drugs. However, there are some traditional plans that, in order to offer a lower premium, eliminate the copays.
High Deductible Health Plans
The objective of high deductible health plans (HDHPs) is to offer health insurance coverage at a lower monthly cost. This is done by raising deductible to a number higher than traditional plans. HDHP's start with deductibles as low as $1500 per person and $10000 per family.
Usually HDHPs come with a Health Savings Account (HSA) option. A health savings account is a government sponsored account that you can contribute to on a pre-tax basis. That money can then be withdrawn to pay for medical expenses. The theory is that that one can put the difference between the cost of a traditional health insurance plan and a HDHP in the HSA. When the individual needs medical treatment, the HSA money is used first to cover the high deductible.
Transition Health Insurance
Transition health insurance was designed to provide insurance to individuals while they are in between jobs. It provides limited coverage for up to six months. It is typically less expensive than traditional health insurance. This type of insurance is not meant to take the place of traditional health insurance. It does not cover many of the things that traditional plans are expected to cover. Some of the things that are not covered on most transition health plans are children's immunizations and prescription drugs. Please talk to an insurance agent to get a complete list of what is not covered on transition health plans.
Individual Health Insurance
When purchasing health insurance on your own (not through your employer), it is called individual health insurance regardless of whether the coverage is for one person, two people, or a family. Individual health insurance requires underwriting as a part of the application process. As such, usually the application includes a health questionnaire and a medical records release. Due to the nature of the underwriting process, individual health insurance plans can take 2-4 week to be underwritten.
Unlike group health insurance, coverage through individual health insurance is not guaranteed. As determined by the underwritting process, an applicant can be approved at the base rate, approved at a higher rate, approved with an exclusion, or declined. If the applicant is approved at a higher rate, the new rate can be no higher than 85% higher than the base rate. If the applicant is approved with an exclusion, the applicant will be required to sign a form agreeing to the exclusion. An exclusion can be a body part, such as an ankle or knee, or a condition, such as asthma. If a policy is put in force with an exclusion, no medical expenses related to the excluded body part or condition will be paid.
Traditional Plans
You have probably heard of the term 80/20 when it comes to health insurance. This refers to what is called the coinsurance. The coinsurance determines how much of each medical bill will be paid by the insurance company and how much will be paid by the individual, after the deductible is met. In the case of an 80/20 plan, after the deductible was met, 80% of the each medical claim would be paid by the insurance company and 20% would be paid by the individual.
Traditional plans have deductibles ranging from $250 to $1000 per person. They usually also include copays for office visits and prescription drugs. However, there are some traditional plans that, in order to offer a lower premium, eliminate the copays.
High Deductible Health Plans
The objective of high deductible health plans (HDHPs) is to offer health insurance coverage at a lower monthly cost. This is done by raising deductible to a number higher than traditional plans. HDHP's start with deductibles as low as $1500 per person and $10000 per family.
Usually HDHPs come with a Health Savings Account (HSA) option. A health savings account is a government sponsored account that you can contribute to on a pre-tax basis. That money can then be withdrawn to pay for medical expenses. The theory is that that one can put the difference between the cost of a traditional health insurance plan and a HDHP in the HSA. When the individual needs medical treatment, the HSA money is used first to cover the high deductible.
Transition Health Insurance
Transition health insurance was designed to provide insurance to individuals while they are in between jobs. It provides limited coverage for up to six months. It is typically less expensive than traditional health insurance. This type of insurance is not meant to take the place of traditional health insurance. It does not cover many of the things that traditional plans are expected to cover. Some of the things that are not covered on most transition health plans are children's immunizations and prescription drugs. Please talk to an insurance agent to get a complete list of what is not covered on transition health plans.
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