Low Cost Medical Insurance
Finding low cost medical insurance isn’t easy. This article looks at some possible solutions and discusses their pros and cons.
Employer
Most employers offer health coverage at group rates to fulltime employees. Some employers even help with the cost of health insurance.
- Pros: Employer-sponsored health insurance is often very affordable.
- Cons: Limited choice of insurance plans.
COBRA
If you’ve recently left a job with a company that employed twenty or more people, you may be eligible to continue your health insurance coverage at your former employer’s group rates for an additional eighteen months.
- Pros: COBRA provides a good way for you to continue to receive coverage while you’re making other arrangements.
- Cons: COBRA only lasts for eighteen months; some people find it cost-prohibitive.
Catastrophic Health Insurance
Catastrophic health insurance has low premiums and high deductibles. It does not pay for routine medical expenses, but it does provide coverage in the event of a major health problem.
- Pros: Catastrophic health insurance safeguards you financially from the devastating effects of a serious illness or injury.
- Cons: Routine medical expenses such as visits to the doctor can add up quickly, and catastrophic health insurance does nothing to alleviate these expenses.
Mini-Medical Plan
A mini-medical plan is almost the polar opposite of catastrophic health insurance. For a low monthly premium, your mini-medical plan will cover a limited amount of routine medical care such as visits to the doctor, basic lab work, some prescriptions, etc. However, a mini-medical plan does not cover major medical expenses such as hospitalizations, surgeries, etc.
- Pros: Mini-medical plans are great money savers for healthy adults.
- Cons: Mini-medical plans can leave you in a real lurch if you suffer a serious illness or injury.
Medicaid
Medicaid is a federally funded, state administered program that provides low or no cost insurance to people with severely limited incomes. Some states impose additional conditions, limiting Medicaid recipients to individuals who are under the age of 18, pregnant, disabled, or elderly.
- Pros: Comprehensive coverage including long term care.
- Cons: It can be difficult to qualify for Medicaid; some doctors and hospitals do not accept Medicaid.