What to Consider in Getting Individual Coverage

2008-01-16 09:54:35

( Health )



Realities about Individual Coverage

When you lose your job or decide to go on your own, one of the employment benefits that are compromised is health care insurance coverage.

Although you may be allowed to continue subscribing to your health insurance plan, you will find that it has skyrocketed. This is because your company no longer subsidizes your health insurance premiums. Furthermore, the company was able to save on health care costs because the premiums it pays were based on group rates which were cheaper than individual coverage.

Options for the Unemployed or Self-Employed

You do have several options available regarding your health care plan. One is to continue with the plan that you have before you lost your job, and maintain the same type of coverage you have been availing of as though you were still employed. Of course, this is a very expensive option because you will have to shoulder the entire premium from now on. Furthermore, you can only continue the same plan for a limited period, as dictated by law.

Another option is to discontinue the existing plan, and look for cheaper types of individual coverage. This will save you more money. On the other hand, you will not be able to have the same type of coverage, because most of these individual coverage plans offer only the barest minimal services.

A third option is not to have any medical coverage at all and just keep your fingers crossed that you will not need it until you're able to find another job. This is not only risky but will also compromise your own well-being and quality of life. When you get sick or involved in an accident, you will also incur enormous medical bills unless you're lucky enough to get into a charity ward at a government hospital.

Decision Criteria for Individual Coverage

Whether you chose to be unemployed or not, you should consider some important criteria when deciding on what individual coverage you will buy.

Cost is the first consideration, but definitely should not be the only one. You must also realize that most individual insurance rates are substantially higher than employer-sponsored plans. But you can also make comparisons between insurance providers to get the cheapest one.

You should also study the terms and conditions of the individual coverage plan, to know which illnesses and medical services it can cover. Confirm if the provider is also willing to accept any pre-existing conditions you might have. Also find out how much you will have to pay on your end for some services.

You also need to consider the insurer's reputation. It's best to choose from insurance companies that already have proven integrity in terms of their network of doctors and medical facilities. If possible, get a list of the doctors and hospitals or clinics that are available to you under the plan. You will want to select the ones that are nearest your home.


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