Tips on Buying Individual Health Insurance
Submitted by: Steve Klein
If you are self employed, don’t have health insurance through your employer, or possibly retired before you have become eligible for Medicare, finding a health insurance plan you can afford could be a challenge. The good news is that you can find an affordable plan without compromising quality.
One of the major differences between buying your own health insurance as opposed to being in a group plan at work is that the group plan is guaranteed issue. Because insurance companies can not reject anyone or adjust rates based on risk, they end up charging everyone more. If your employer is paying all or even a portion of your monthly premium, you may not realize the high cost of the plan you are on. An individual health plan is fully underwritten so the insurance carrier has the ability to reject high risk clients which means the monthly premium will be lower.
Maryland health plans include a high risk pool that is supported by the state and offers guaranteed issue. The plan is managed by CareFirst which is the Blue Cross and Blue Shield affiliate in the state. Virginia has a similar plan but it is through Anthem Blue Cross and Blue Shield in that state. These plans can be expensive but when there are no other options available, they can be an excellent solution to what could become a very big problem. An excellent choice here in Maryland is the High Deductible plan which costs only $175 for someone who is 55 years old.
What is the best way to educate yourself about the choices that are available to you for health insurance? I suggest following these steps:
1. Use a licensed health insurance broker who knows your market. I live in Maryland and I work with health insurance carriers in Maryland and Virginia only. By limiting the territory I work in to my home region, I can help my clients shop for price, help with claims, and advise them of what to expect in terms of rate increases and any other issues that can arise. In addition, the service I provide is free! Whether you use a broker or go directly to the carrier, the monthly premium will be the same. With that in mind, doesn’t it make good sense to talk to an independent health insurance broker before you choose a plan?
2. Ask for a written price comparison or you can get quotes from the web. My site is www.mrinsuranceofmaryland.com and all you need to do is enter your zip code to get a rate comparison from all the Maryland health insurance carriers and the Virginia carriers as well. With rates and program descriptions in hand, you are now prepared to evaluate and choose the best plan for yourself and your family.
3. Consider a high deductible plan that has a Health Savings Account option or HSA. Your premium will be significantly lower than for a traditional health plan plus you will have an added tax advantage where you can deduct up to $3,000 of medical expenses for an individual and $5,950 for a family. Any funds you put into your HSA account become tax exempt and there is no time table for using that money. At age 65, the money can be used tax free.
The greatest cause of bankruptcy in this country is from Americans being either uninsured or not insured at all. Don’t let yourself become a statistic and expose yourself to undue risk and even financial ruin. Consult with a licensed health insurance broker in your state and you will learn about the choices that are available at a reasonable cost. With that information in hand, you can make an educated decision as to what is the best path and the best plan for you to take.
Remember, free quotes are available online at www.mrinsuranceofmaryland.com and I can be reached daily from 8 AM to 8 PM at 866-654-4844. Take advantage of this free service, learn about your options, and make an educated decision that will give you peace of mind.
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