Any individual health plan not only caters to an individual alone, but will also be called an individual plan if it is being paid for by a single person alone.
Most people prefer to stay without any kind of coverage than going for an individual plan as the later is costlier policy to buy. WHEN TO GO FOR AN INDIVIDUAL PLAN? Individual plans are not generally preferred by people as they are not cost effective. However if a person is self employed,
or his family insurance does not cover him or if he is between jobs, then the only alternative that he has is to go for an individual medical plan.
TYPES OF INDIVIDUAL PLANS While a person in such a situation has no other option, but to go for an individual plan, the choice lies in the kind of plan he opts for. There are various medical plans that are not too heavy on the pocket. Here is a look at the few of them.
- Preferred Provider Organization: This is the most popular individual plan. Though there is a network of healthcare providers, one can opt for a doctor outside the network as well. In a case of emergency, the beneficiary may not even have to pay extra for consulting a doctor outside the network. - Health Maintenance Organization: It is a basic individual plan and is the best option when one has financial constraint. The plan focuses on providing primary and preventive treatment. - Indemnity plan: It provides insurance based on deductibles and upto the maximum allowed for that policy.
QUESTIONS TO BE ANSWERED When looking to buy one of the costliest type of medical plan, it is important that you are satisfied that it provides you with exactly the kind of coverage that you are looking. A quick checklist on the following and you can be assured of the coverage. - Is your choice of doctor included in the provided network? - Will it cover your medical expenses outside your state?- Will your existing medical condition affect your coverage?- What will be the deductible, premium and the co-insurance that I am supposed to pay?- What are the benefits specific to the plan I am opting for?
TIPS TO GET YOUR INDIVIDUAL PLAN CHEAP Agreed that individual plans are expensive, but that does not mean there is no way around. If you study carefully, then you will surely come across plans that are comparatively cheaper.
Agreeing to pay a higher deductible automatically means that you are paying a lesser premium. So if you looking for a plan that hopefully you will never use, then this is a good permutation to look for.
One can also lower the premium by excluding certain health services in the plan. For example, if you have no plans of motherhood at the moment, then why pay more for maternity benefits in your medical plans.
However, the sure shot way getting a plan at a cheaper rate is to purchase it as soon as possible. Premium depends on the medical status and age of the person which basically means the older you get, the more premium you have to pay. Hence the idea is to buy your individual plan now so that you don’t have to pay more for it later on.
INDIVIDUAL PLANS AFTER THE REFORMS There is a common misconception that one has to pay more after the reforms are implemented. But in fact, premiums could go down by 14 to 20 % after the Act is implemented. And with the tax credits being available to the residents, individual premiums could depreciate further by about 60%. Individuals do not have to pay more for co-pays and deductibles either as there would be a cap on how much one pays from his pocket.
Individual plans will also come with a bouquet of other essential benefits. This will include prevention and wellness benefits at no extra charge, recommended vaccination and an access to the state-based Exchange. They will also allow people to choose their own doctor from the participating providers. Also there would be no prior authorization required to visit an ob-gyn.
Buying an individual medical plan can be tough no doubt, but with a cautious approach and the right research, one will be able to grab a really good deal for himself.
