How Can I Find the Most Affordable Health Insurance?

Many people are finding themselves in situations where it is difficult to obtain affordable health insurance.  If you are one of these people, don't lose hope.   There are ways that you can find low cost health insurance, even when it may seem impossible.

Here are a few scenarios that I have recently run into with clients.  Maybe the advice I gave them will be helpful to you as well.

1.  I just lost my job...should I take the COBRA coverage?

This is a tough situation to be in, and unfortunately, has become more and more common lately.  If your employer has recently let you go, or you've been told that your job will be eliminated soon, you need to decide what to do about your health insurance.  You have to option of staying on the employer sponsored plan under the COBRA rules, which began in 1986.  You have 60 days from the date of your termination to decide if you're going to elect for COBRA continuation coverage.  Part of the stimulus package recently signed by the President included a temporary reduction in premiums that certain people have to pay for COBRA coverage.  If you were involuntarily let go from your job between 9/1/08 and 12/31/09, and you elect COBRA, you qualify for this reduction.  You only have to pay 35% of the COBRA premium for up to 9 months, and the government will pick up the rest.

If you do not qualify for this stimulus plan premium reduction, then you may want to shop around to see if you can find some better low cost health insurance on your own.  Many employer sponsored health insurance plans can be very expensive because they are required by law to include coverage for things you may not want or need.  For example, most states require that employer sponsored health insurance plans include coverage for maternity care.  This increases the cost of the plan dramatically.  If you are not planning on having children, you can have much lower premiums by customizing your own policy through an independent agent.

2.  My employer offers health insurance, but it's too expensive!

Many health insurance plans offered by employers include all the bells and whistles and are very costly.  In addition, employers are trying to save money by cutting back on how much they contribute to the premiums for you, so you end up paying the difference.  You may be able customize your own low cost health insurance plan for much less.  Again, working with an independent agent who represents many different companies could save you a lot of money.

3.  I've been declined by insurance companies already, or it's just too expensive...Now what?

This scenario is all too common today.  More and more people are getting turned down for health insurance due to medical conditions and/or history.  If this applies to you, you should consider a limited benefit health insurance plan that has guaranteed issuance.  This means that they don't ask any medical questions, and everyone pays the same premium no matter how old you are.  These plans are much better than having nothing at all, and they are very affordable.  But you want to make sure it's real HIPPA certified insurance, not just a discount plan.  Again, check with an independent agent who represents many insurers so that you can find the best health insurance available.