Jim, For The First Time In Many Years I Do Not Have Employer Paid Health Insurance. I Need Coverage, Where Can I Find The Lowest Cost Policy?

The difficulty I have had over the years addressing the issue of health insurance on a radio or TV program is that it varies greatly from one state to another.  In today’s blog, I will address the subject somewhat generically and also provide you with some tips to find out more details about your particular state.

Before I get into how to find a good policy, I want to address the issue of how to buy health insurance inexpensively.  While we all love the plans that cover everything from eye glasses to prescription drugs, the reality is that these plans are not affordable if they are purchased individually (outside of an employee group).  As a result, the first thing that you must do is to accept the reality that by purchasing insurance on your own you are going to have to do so as a minimalist.  This means you will be looking for a major medical plan that covers only your larger medical expenses.  It may not pay for routine doctor visits and may require a deductible of $2,500 to $3,000 per year.  This type of coverage should be viewed as a means to protect yourself against a catastrophic medical expense.  We all know that even a short hospital stay can end up being thousands of dollars.  Before you dismiss this idea, read on.

The savings realized by obtaining only a major medical policy can be thousands of dollars per year.  Therefore, you should start a savings account and begin building up your reserves to deal with day-to-day medical expenses that are not covered by your insurance.  As a cash buyer of prescription drugs and other routine legal services, you will find ways to save money.  There are numerous discount prescription plans available (including a new one at Wal-Mart), as well as walk-in clinics that are far less expensive than hospital emergency rooms.  Many doctors will slash their prices for those paying cash, so don’t be afraid to ask.  The bottom line; be resourceful.

We have been suggesting a website for many years and have gotten very good feedback on it.  www.ehealthinsurance.com is a sort of search engine for health insurance.  They provide individual policies as well as coverage for groups.  This would be an excellent place to start.

I would also ask around and try to find a good local agent that sells health insurance in your city.  A local agent can be an invaluable resource on ways to save money that are unique to your state.  For example, some states require health insurers to provide group rates to individuals that are self employed.  This may be as simple as starting a part time home business and obtaining a business license.  Once you are officially in business you would qualify for these kinds of programs.  A local agent will be your guide as to what special programs are available in your state.  If you are a member of a trade, check with your trade association.  For example, a Realtor should contact their local and national association of Realtors office to find out about group rates.

Some states even have programs requiring insurance companies to accept you despite siginficant pre-existing conditions.  This is simply a matter of researching what the laws are in your state.  I remember a few years back sharing this same information with a client that had survived cancer.  Due to having cancer in their medical history, they could not get an insurance company to cover them.  As a result of my advice, they researched the issue on a state by state basis and ending up moving.  They moved to a state that required health insurance companies to accept self employed individuals regardless of pre-existing conditions.  She started a part time business, obtained a business license, and was able to purchase a major medical policy.  It was worth it for her to move, since not having coverage was simply too big of a risk to take.

I am very interested in any ideas you may have on this topic.  Please click on comments below to contribute.

My main website is www.ChristianMoney.com

James L. Paris