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Cheap Short Term Health Insurance - Five Keys to Finding Cheap Short Term Health Insurance

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Short term health insurance is useful, cost efficient, and sometimes necessary, for many people who are in-between jobs or who have recently graduated from college and can no longer be covered under a parent’s policy. The key to finding short term insurance that is reasonably priced is to determine the length of time the insurance is needed, what services are required, deductibles, co-pays, and co-insurance.

Short term health insurance provides coverage for those who are uninsured for a period of 30-365 days. There are multiple policies that one can choose from including various premiums, deductibles, and co-payments. In addition, the policies are generally comparable to ones that an employer would provide and offer services that are generally the same such as: doctor visits, hospitalizations, emergency room care, prescription drugs and more.

Keep in mind that plan services may vary slightly, which may change the premium cost. Therefore, if you are looking for the cheapest insurance, you will want to choose the most basic services. Most health insurance that is short term can be paid on a monthly basis, but to save money, many companies will reduce the premium if the entire amount is paid up front.

The first step is to find an on-line broker who specializes in health insurance, and more importantly, short term health insurance. There are numerous Internet sites that provide this service. Once you find a broker, you will be asked to enter your age as well as some other general health questions. When you have completed this brief questionnaire you will be guided to a list of health insurance carriers and policy options. From here, one can compare premiums, deductibles, co-pays, co-insurance, and what types of services are offered. The key is to find the policy that best suits your needs without breaking the bank.

For instance, if you merely need coverage to see a doctor once a year for a physical and for general office visits then you may want to choose short term health insurance with a larger deductible that offers office visits at a small co-pay amount without having to meet the deductible first. Policies with high deductibles normally have smaller premiums. In addition, you will still be covered for major medical care, but will need to meet the deductible first.

Furthermore, choosing a plan with a co-payment or higher co-pay amount will also lessen the monthly premium you need to pay. A co-payment is the amount you need to pay for a doctor visit at the time of service. A deductible does not normally need to be reached before one is required to make co-payments and one can receive general preventative care for just the co-payment amount.

For example, one chooses cheap short term health insurance with a $3,000 deductible and a $35.00 co-payment. Most general doctor visits will be covered for only the cost of $35.00 to the patient. If one needs further care such as laboratory testing, hospitalization, or surgery, then he or she must pay the $3,0000 deductible before treatment is rendered. Also, opting for a $50.00 physician visit co-payment may result in a smaller premium than a $20.00 co-payment.

In addition, try searching for plans that offer a higher co-insurance rate. Co-insurance is the amount that one needs to pay after a deductible has been reached. For instance, an insured has purchased a short term health insurance policy with a $2,000 deductible and 80/20% co-insurance. Once the insured reaches his or her deductible, all services will be covered at 80%. Therefore, the insured party is responsible to pay the remaining 20% of care. However, many companies offer policies in which 100% of care is covered after all out of pocket expenses have been met. These will result in higher premiums. In order to reduce your monthly cost, opt for a policy with an 80/20 or 85/15 split.

Therefore, the five main points to consider are: how long the insurance will be needed, what services are needed, the deductible, the co-insurance, and the co-payment amount. The shorter amount of time the short term insurance is needed, the lower the cost. In addition, the larger the deductible, co-pay, and co-insurance, the smaller the premium. Furthermore, the lesser the amount of available options, the less premium one will pay.

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