Health Cares

The rising cost of health care coverage has created a quandary for consumers. Comparing and contrasting providers and plans is no easy task.

Minneapolis, MN (PRWEB) October 22, 2005 – Insurance shopping in the twenty-first century is a unique challenge. More and more companies are hiring without benefits, so what options are available to those not covered by their employers?

A February article in Health Affairs notes a Harvard study indicating that medical bills are the leading cause of bankruptcy. It goes without saying that health care coverage is only effective if it is acquired before an accident, illness or pregnancy occurs.

The sad truth is consumers have no legal “right” to health coverage. After a job loss, employees may not necessarily able to keep their coverage or get same coverage at same price. COBRA (Consolidated Omnibus Reconciliation Act) is an extension of benefits available for a short time after job termination, but not a long-term solution for coverage.

Basically, there are two types of plans: individual or group. An individual plan, not underwritten by a group or employer, is for a single person or family. This type will be more expensive than a group plan rate as the risk factors are not spread out over a group but are specific to individuals. It is possible to attain group rates as one person who is self-employed and can act as employer and employee.

Pre-existing conditions such as heart disease, diabetes, or even pregnancy can result in rejection or higher premiums. Some states require health insurers to offer plan to everyone regardless of their situation; this is called a “guaranteed issue.”

There are some federal programs that help those in specific demographics. Medicaid is a program that pays for medical assistance for certain individuals and families with low incomes and resources. Medicare, currently providing coverage to approximately 40 million Americans, is the national health insurance program for people age 65 or older, some people under age 65 with disabilities and people with End-Stage Renal Disease (ESRD), which is permanent kidney failure requiring dialysis or a kidney transplant. The Children’s Health Insurance Program is a program for parents who make too much money to qualify for Medicaid, but cannot afford health insurance of their own.

A good strategy to finding good insurance is finding a good agent whose reputation is good. Ask plenty of questions, including explanations to common plan terminology, such as FFS (fee-for-service), HMO (health maintenance organization), POS (point-of-service), and PPO (preferred provider organization). Understanding the coverage is important before signing on the dotted line. For more information about health care plans, visit our site at http://www.healthplanforless.com

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