Skip to main content

How to Get Cheap Health Insurance Plan?

The United States government is introducing several plans and schemes to help US residents enjoy full health insurance benefits. "Obamacare" is a plan that provides health insurance for both high-income and low-income groups in the US. However, a report by a Washington DC firm named Avalier Health states that a plan in Obamacare, called the Silver Plan, will increase by about 34% in 2018. Silver plan offers a good coverage policy and is slightly higher on monthly premium. For those who cannot afford such high premiums; They do not need to worry, because apart from this there is a subsidy scheme, which will provide health insurance at a low cost.

While shopping for cheap health insurance plans, one should have a good knowledge about health insurance policies. Senior Vice President of Advisory Services at Manning & Napier, Shelby George advises shoppers to always see how much coverage is provided for the costs the company provides. In other words, one should not get carried away by cheaper rates, rather focus on how much coverage the insurance companies are providing for the cheaper rates that they advertise.

To get the best cheap health insurance, here is a description and description of the various policies available, whether one can get insurance for "free".

Subsidy and other health insurance schemes:

One of the many useful schemes proposed by the government, aimed at providing health insurance coverage to all Americans, is 'subsidy'. A subsidy is, in simple terms, the amount of money the government gives to insurance companies to provide health insurance to low-income people. This means that people in the lower income group will be able to enjoy health insurance benefits through the use of subsidies, which would otherwise be rejected by insurance companies on any other short-term policy claim.

A person who earns $ 48,000 and a family of 4, who earns less than $ 98,000, are the ones who can take advantage of the subsidy. Therefore, low income people can enjoy good cheap health insurance with the help of subsidies. However, these subsidy schemes proposed by the Obamacare plan are likely to be completely changed or eliminated by the Trump administration.

Talking about other health insurance plans, a silver plan will cover up to 70% of a person's health care fee, while a bronze plan will cover up to 60% of the cost and the remaining percentage will be paid from the person's payment. Pocket. Now, on comparing these two schemes, if one does not want to spend any money out of his pocket, it will help a lot to choose the Bronze Scheme with subsidy. For those who cannot pay out of their own pocket, a Bronze plan coverage of 60%, with the remaining 40% covered by subsidies, will help them enjoy cheaper health insurance.

What type of policy can you choose?

The first step to get hold of the best cheap health insurance is to suit the needs of the individual. Here is a list of two options briefly explained, so that one can choose the best fit.

1. Short-term policy: A short-term policy is for those who are not eligible to receive subsidies. In other words, people for whom it becomes 'ineffective' to obtain health insurance are advised to choose this policy. Here the term 'unforgivable' is described as a cost that is more than 8% of the annual income of an individual or family. According to Nat Purpura, vice president of consumer affairs (, families with incomes ranging from $ 49,000 to $ 69,000 and families who earn anywhere between $ 99,000 to $ 129,000 should go for short-term policies.

Therefore, if one finds it difficult to pay expensive premiums and get health insurance, then going for a short term policy is highly recommended. However, there is no penalty if one does not want to have health insurance. But, on a positive note, it is beneficial for individuals themselves, if they have some financial security, which would be beneficial in unfriendly circumstances.

Here are some notable details about short term policies:

  • These policies usually last for 3 months and can be extended to 9 months (renewal period of 3 months).
  • According to the new rules proposed by President Trump, it would be mandatory for all individuals to have a short-term policy. However, this rule has not yet been passed, but will come into force soon.
  • These policies do not provide coverage for pre-existing diseases, ie diseases that a person suffers from before applying for the policy.
  • If there is a desire to include such pre-existing diseases in the coverage plan, there will be a substantial increase in the premium.
  • Unlike Obamacare plans, short-term policies will not cover fees for maternal care, injuries due to abuse, and mental health treatment.
  • On having a short-term policy, one can avail decent health care facilities at about $100 premium a month.
  • On an overall basis, despite the low coverage options it provides, those who are looking for cheap health insurance for individual or cheap health insurance for families, can avail great benefits from this policy.

2. Combined Policy or Combo of Policies:

Traditional policies or in other words plans with higher premiums will provide coverage for all the expensive hospital bills in case of risky illnesses or accidents. Whereas, choosing short-term plans will simply cover the normal doctor-visits. But if one wishes to avail the benefits of both the policies, i.e. get coverage for risky illnesses as well as for normal or routine sickness (like a cough, cold, fever), then insurance companies these days are offering combo packages.

In the recent past, people used to apply for both policies separately in order to avail coverage in both cases. This was getting difficult for the insurers to calculate different percentages and amounts; hence the plan for combo policies came up, allowing people to avail both benefits within a single policy. However, as evident as it seems, going for these policies will definitely cause one to pay premiums higher than usual.