Facts About Private Health Insurance

There’s a good chance that if you’re reading this article you have lost your job along with your health insurance benefits too. Finding private health insurance can be a long, daunting task that can seem overwhelming.

First, if you just lost your job and the company you worked for had at least 20 employees, you will qualify for COBRA. COBRA stands for Consolidated Omnibus Budget Reconciliation Act. It gives workers and their families who lose their health benefits from loss of employment (voluntary or involuntary, death, divorce, loss of hours, in between jobs) a temporary extension of 18 months of coverage. You will have to pay the premiums which can be extremely expensive, but it will give you time to find another job with health benefits or private health insurance. Be sure to shop around for private health insurance before COBRA ends. It can take up to 2 months to complete the whole process of applying for health insurance, filing the paperwork, answering additional questions and waiting for either the acceptance or denial of a private health insurance policy.

Private health insurance is expensive, the amount of coverage is limited, and there are fewer benefits and higher co-pays. Premiums are based on your age, gender, weight and general health. Younger, healthy individuals should find it easier and cheaper to find insurance. Premiums rise substantially as you age. People at the age of 50 will pay twice as much as individuals under 20. Monthly premiums can range from $100 to $1000. Lower premiums will likely exclude coverage for many health conditions. You will also have to pay a deductible—from $2,000 and up—before your insurance kicks in. Then there’s a maximum amount the insurance will pay. That may explain why there are 50 million Americans under the age of 65 who didn’t have health insurance in the last year

If you have a preexisting condition such as cancer, heart disease, diabetes, high blood pressure or even asthma, there’s a good chance you’ll be denied coverage.  If you’re not denied, your premiums will rise significantly and certain coverage and medications (for the very condition you need it to cover) may be excluded. Additionally, if you’re a smoker &/or overweight, you will probably pay a much higher premium.  However, a lot depends on where you live.  Some states prohibit discrimination against people with preexisting health conditions.  Check with the state you live to find out its policy on preexisting conditions.

If you’re looking for health insurance for a limited amount of time, you may want to consider short term insurance. It may be an ideal option for those people in between jobs, or for those who are waiting to be accepted for traditional health insurance. Usually short term insurance will last from one to 12 months with the average plan covering up to six months. Short term insurance is a plan designed to protect against unforeseen accidents or illnesses. It will not cover physicals, dental, vision, preexisting conditions or preventative care.

HIPPA (Health Insurance Portability and Accountability Act) are plans for those who are having trouble getting health insurance otherwise (usually due to preexisting conditions). They are typically very expensive.

Private health insurance may be your only option if you’re unemployed, but you can also check on health insurance options through associations, local professional trade groups, or other group coverages. Before you make your final decision, be sure to read the fine print and make sure you’re buying comprehensive coverage that will cover you if you become ill or have an accident. You could easily rack up thousands of dollars in hospital bills. Go with a reputable firm. Check its claims paying rating with a company such as Standard and Poor’s or Moody’s.