How to Find Affordable Health Insurance

When you are on your own or self employed, finding affordable health insurance can be a bit overwhelming.  In this post I am going to give you a few tips on where to find affordable plans and then the questions you should ask about those plans once you find them.  Like anything we do in personal finance I ask that you take a deep breath and not rush.  Don’t get me wrong; you don’t want to be uninsured, but don’t just jump into the first policy you are shown.  Homework.  Yes, there is homework.  But, I will give you the answers. 

Remember, you want to purchase your health insurance through an independent insurance broker, so that they are able to act in a fiduciary capacity, in your best interest.   This versus going through a captive agent who is selling you their proprietary product is the only way to go, IMO.  Independent agents are product neutral meaning they will work to find you the best policy out there.   Here is a link to an article where I described the advantages of using an Independent Insurance Agent

The Health Insurance Market – a few things to consider.

Remember the health insurance market is run state by state.  Certain states have restrictions like not allowing pre-existing conditions.  So PLEASE let me highly recommend that you let the the insurance agent you are working with know of any pre-existing conditions when applying for coverage.  Withholding the information will not benefit you in the long run.   This is the other reason it’s a good idea to use an independent insurance agent when looking for health insurance; they have the ability to research multiple plans for you and ultimately find a company that suits you.

Here are a few Resources to inform yourself on the Health Insurance Market

1.  Check out  The National Health Underwriters Organization and become familiar with the regulations in your state.  I realize this is about as fun as going to the DMV but just do it and get it over.

How  To Find The Available Plans and an Independent Agent

By taking a little bit of your own time you can investigate the actual plans available within your state.  Will the plan meet you and your family’s needs?  That’s the question you always want to be asking.

1) Check out Advisor World (www.advisorworld.com) to find an independent agent in your area.
2) Try E – Health Insurance to research plans.
3)  Insure.Com contains a national database of health insurance carriers and plans.

Those are some resources to find the correct plan or agent for you.  Once you come across the plan you want to investigate or your independent agent brings a policy for you to review, here are a list of questions you should ask before signing up for the actual plan. Ask these questions before (not after) you sign up for the plan.

Make sure you ask these very important questions:

1) What are the co-pays and deductibles you will be responsible for? Don’t get the cheapest plan if you won’t be able to afford the deductible.

2) Are there any restrictions for coverage on things you really need.  (Eg. Does the plan allow annual physicals or mamograms

3) How many doctors visits does the plan allow? (How often do you go now?)

4) What if any pre-existing conditions are allowed?

5) How many emergency room visits are allowed?

6) What doctors are available in the network?  Is your existing doctor included?
7) What is the plan for prescription drugs?

Here’s the thing about most insurance plans; you won’t know how the plan works until you are forced to use it.  So, asking these questions and taking these precautions up front will save you a lot of potential headaches down the road.

Hopefully, you found this information helpful.  Feel free to add tips and suggestions of your own.