Low Cost Individual Health Insurance Options: How to Save When Buying Insurance
May 26, 2007
If you don’t have a health insurance policy through your employer, or if you’re self-employed, you will need to purchase individual health insurance if you want health insurance coverage. While individual health insurance typically has a reputation for being expensive, there are more low-cost options available now than ever before.
If you want low-cost individual health insurance, you can choose a Health Maintenance Organization (HMO) instead of a Fee-for-Service plan. HMOs are prepaid health plans providing you with comprehensive care including doctors’ visits, hospital stays, emergency care, surgery, lab test, x-rays and therapy. Care is arranged by the HMO in its own group practice and/or through contracted doctors and other health care professionals. The down side is that your provider choices are limited to those in the HMO.
Co-payments are low, averaging $5.00 per doctor visit and $25.00 per emergency room visit. Medical costs are lower than those in fee-for-service plans. HMOs offer preventive care including office visits, immunizations, well-baby checkups, mammograms and physicals. Outpatient mental health care is sometimes offered but coverage is limited. HMO plans don’t require you to file claim forms for doctor visits or hospital stays. Instead, you show a card when you check in at the doctor’s office or hospital.
You can also choose a Preferred Provider Organization (PPO), which is a combination of traditional fee-for-service insurance, and an HMO. A PPO features a network of providers. When you choose a provider in the network, most of your medical expenses are covered by the plan. Just like with an HMO, you present a card when you visit your doctor instead of filling out claim forms, and you pay a small co-payment.
You may have to pay a deductible and/or co-insurance for some services. With a PPO, you must choose a primary care physician to monitor your health care. Unlike HMOs, you can choose out-of-network physicians and still receive coverage, but you’ll have to pay more. PPOs generally cover preventative care, including doctor visits, well-baby care, immunizations, and mammograms.
To find low cost health insurance, shop around by calling insurance companies, getting online quotes or talking to an insurance agent.
