How to Buy Individual Health Insurance Coverage at Group Rates
2:04 AM
Group health insurance, as part of a group plan at a full-time job, is generally offered at lower rates on premiums compared to individual health insurance coverage. But if you leave your job - or start another one that doesn't offer health insurance, a group health plan may not be an option. And you may be surprised at just how expensive the same coverage is when you buy individual health insurance.
An individual plan is one purchased on the private market, not tied to workplace benefits. Although they are called "individual" plans, they can cover you, your spouse and your children. Other ways to buy health insurance when you're between group health plans include "short-term" health insurance and "catastrophic" health insurance.
Individual plans are "medically underwritten", which means the insurer may reject your application, if you have existing health problems. Some states don't allow this practice and require that insurance carriers offer you a policy, no matter what your medical condition. A list of "Guaranteed Issue Laws" has been published by the Kaiser Family Foundation, so do your homework before you let a carrier reject your desired policy application, or make exclusions to it.
Even though people enrolled in individual health insurance plans pay more as they grow older and more prone to illness, don't let that tempt you into to going without coverage. Even if you're healthy you could have a serious or near-fatal accident and be forced in "medical bankruptcy" as so many millions of others are each year.
Keep in mind, if you go without insurance for 63 days or more, a time period set by the Health Insurance Portability and Accountability Act (HIPAA), you'll lose your rights to coverage of pre-existing conditions.
You may feel locked out of the health insurance market if, for example, you've been uninsured for too long, or have a "pre-existing condition". It may seem impossible, there are practical ways you may be able to get coverage.
If you are a self-employed, sole proprietor, even home-based, you need to do your research carefully. Because in some states, you can be eligible to buy health insurance as a "group of one". All you need is proof that you've been in business for at least 30 days.
If the state in which you live does not offer these "group of one" insurance policies, you may still qualify for a group rate if you own a business and have at least one partner or employee. Is your spouse helping you with your home-based business? Then you qualify as a two-person business, and are eligible for a group rate and a group policy.
Before planning to leave an employer with which you have a group health plan, call and inquire as to whether their insurance carrier can convert it to an individual health plan for you. Even though the rate will be higher than your employer's group plan, it's your best option, for the time being, to secure health insurance. This is most important for those with existing medical conditions. Also inquire as to whether your spouse has a group plan at their work, and if they can add you on.
An individual plan is one purchased on the private market, not tied to workplace benefits. Although they are called "individual" plans, they can cover you, your spouse and your children. Other ways to buy health insurance when you're between group health plans include "short-term" health insurance and "catastrophic" health insurance.
Individual plans are "medically underwritten", which means the insurer may reject your application, if you have existing health problems. Some states don't allow this practice and require that insurance carriers offer you a policy, no matter what your medical condition. A list of "Guaranteed Issue Laws" has been published by the Kaiser Family Foundation, so do your homework before you let a carrier reject your desired policy application, or make exclusions to it.
Even though people enrolled in individual health insurance plans pay more as they grow older and more prone to illness, don't let that tempt you into to going without coverage. Even if you're healthy you could have a serious or near-fatal accident and be forced in "medical bankruptcy" as so many millions of others are each year.
Keep in mind, if you go without insurance for 63 days or more, a time period set by the Health Insurance Portability and Accountability Act (HIPAA), you'll lose your rights to coverage of pre-existing conditions.
You may feel locked out of the health insurance market if, for example, you've been uninsured for too long, or have a "pre-existing condition". It may seem impossible, there are practical ways you may be able to get coverage.
If you are a self-employed, sole proprietor, even home-based, you need to do your research carefully. Because in some states, you can be eligible to buy health insurance as a "group of one". All you need is proof that you've been in business for at least 30 days.
If the state in which you live does not offer these "group of one" insurance policies, you may still qualify for a group rate if you own a business and have at least one partner or employee. Is your spouse helping you with your home-based business? Then you qualify as a two-person business, and are eligible for a group rate and a group policy.
Before planning to leave an employer with which you have a group health plan, call and inquire as to whether their insurance carrier can convert it to an individual health plan for you. Even though the rate will be higher than your employer's group plan, it's your best option, for the time being, to secure health insurance. This is most important for those with existing medical conditions. Also inquire as to whether your spouse has a group plan at their work, and if they can add you on.
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