Learning To Compare Private Medical Insurance Plans
Almost anyone who has ever had a job has enjoyed some form of employer sponsored paid medical insurance benefits. Many employees believed this type of benefit was actually a right. As premiums for these plans skyrocketed in the past years, many employers found it necessary to stop offering medical insurance to their employees. For anyone who felt they needed medical insurance coverage their only other option was to buy private medical insurance.
Private medical insurance is nothing new. It has been available for decades, although it has been used as a choice of last resort because it is much more expensive than getting insurance through an employer sponsored plan. This type of plan was essentially used by the self employed.
Policies for private insurance are available from the same insurance carriers that provide the group insurance for companies. Frequently, a family might be forced into transferring a policy from an employee sponsored group plan to a private plan in cases such as job loss, long-term disability, etc. Many employees who have lost their jobs through no fault of their own have been offered coverage under a program called Cobra. This may seem like some type of group insurance plan simply because it is typically offered to a group of people who have lost their jobs, it acts as a private insurance plan mainly because of the way it is paid for.
People who as their jobs through no fault of their own are usually offered what is called a Cobra plan. This plan is considered private insurance because only the employee pays the monthly premium; there is no funding by the prior employer. The insurance is the exact policy the employee had while he was working; this is a situation where a group insurance policy had been transferred to a private insurance policy.
The person usually is given the option of continuing this coverage for up to a year and a half. Because this is considered private insurance many carriers will give the person the option of continuing the policy after this time period. The only difference at the end of the policy if the person decides to continue the coverage is that no further information is provided to the ex-employer.
If you are purchasing a private plan for the first time, you may find that there is a very long waiting period in order to enjoy the full coverage benefits. You may be eligible immediately for routine doctor visits, etc., but for extensive testing or hospital stays you may not be covered or you could be covered at a reduced rate. Some private policies actually refuse coverage for any type of major pre-existing condition.
Health concerns such as pregnancy, heart disease, history of cancer, or diabetes will rarely receive any type of medical benefits for future coverage.
A new policy usually requires a down payment ranging anywhere from 30 to 50% of the annual premium. This must be submitted with the original application. Future premiums can either be charged to a major credit card or regular withdrawals can be made from a savings or checking account. Individual plans start at about $100 a month. For family plans expect to pay at least $200 a month for decent coverage.
Private medical insurance is nothing new. It has been available for decades, although it has been used as a choice of last resort because it is much more expensive than getting insurance through an employer sponsored plan. This type of plan was essentially used by the self employed.
Policies for private insurance are available from the same insurance carriers that provide the group insurance for companies. Frequently, a family might be forced into transferring a policy from an employee sponsored group plan to a private plan in cases such as job loss, long-term disability, etc. Many employees who have lost their jobs through no fault of their own have been offered coverage under a program called Cobra. This may seem like some type of group insurance plan simply because it is typically offered to a group of people who have lost their jobs, it acts as a private insurance plan mainly because of the way it is paid for.
People who as their jobs through no fault of their own are usually offered what is called a Cobra plan. This plan is considered private insurance because only the employee pays the monthly premium; there is no funding by the prior employer. The insurance is the exact policy the employee had while he was working; this is a situation where a group insurance policy had been transferred to a private insurance policy.
The person usually is given the option of continuing this coverage for up to a year and a half. Because this is considered private insurance many carriers will give the person the option of continuing the policy after this time period. The only difference at the end of the policy if the person decides to continue the coverage is that no further information is provided to the ex-employer.
If you are purchasing a private plan for the first time, you may find that there is a very long waiting period in order to enjoy the full coverage benefits. You may be eligible immediately for routine doctor visits, etc., but for extensive testing or hospital stays you may not be covered or you could be covered at a reduced rate. Some private policies actually refuse coverage for any type of major pre-existing condition.
Health concerns such as pregnancy, heart disease, history of cancer, or diabetes will rarely receive any type of medical benefits for future coverage.
A new policy usually requires a down payment ranging anywhere from 30 to 50% of the annual premium. This must be submitted with the original application. Future premiums can either be charged to a major credit card or regular withdrawals can be made from a savings or checking account. Individual plans start at about $100 a month. For family plans expect to pay at least $200 a month for decent coverage.
