How to Choose the Right Health Insurance in the USA

Various types of health insurance in the United States are available on the private market. These health insurance plans vary in price and coverage, and can be purchased on an individual or family basis. Traditional fee-for-service plans are the most expensive and are not usually available for low-income Americans. However, these plans offer the most flexibility. For more information on how to choose the right health insurance in the USA, read on! (Note that this article is not intended to replace government health insurance. If you are unsure of your medical history, you can consult your physician.)

Costs of health insurance

According to the money-geek.com site, the costs of health insurance in the USA are based on certain factors. Young people are expected to benefit from lower premiums. However, they are also liable to incur substantial costs depending on their age and location. For example, an MRI scan can cost $7,850, while a blood test may cost as little as $40 or as much as $130 if you use an at-home kit.

In 2001, Americans spent a total of $1.236 trillion on their personal health care. Of this, $99 billion went to the 62 million uninsured people. Public coverage paid for a total of $13.8 billion. These are huge numbers that suggest that the cost of health care is higher in the USA than it is in the rest of the world. This statistic is very worrying, especially since the cost of health insurance has skyrocketed.

Out-of-pocket costs

Recent expansions of insurance coverage have protected most Americans from high out-of-pocket expenses. However, in recent years, out-of-pocket costs have increased for the highest spenders. In 2013, one in twenty Americans aged 20 and younger spent at least $1,700 on medical care. This high out-of-pocket spending was mostly concentrated among people with employer-provided insurance and those who earn more than 400 percent of the federal poverty level. The vast majority of the money people spend on medical care is for physician services.

The out-of-pocket costs of health insurance vary according to the type of coverage you have. HMOs have lower monthly premiums and no out-of-network coverage. You need to pay for visits to your primary care doctor unless you are a member of an HMO. PPOs, on the other hand, charge higher premiums but have out-of-network coverage for certain medical procedures. EPOs combine the features of PPOs and HMOs. EPOs provide coverage for specialist visits without referrals and don't have out-of-network limitations.

Medicaid

In the USA, Medicaid health insurance is offered to low-income individuals and families. In 1965, eligibility was based on receipt of cash assistance such as federal Supplemental Security Income (SSI) or Aid to Families with Dependent Children (AFDC). In 1972, states could decide to provide additional coverage if they deemed it was necessary. The program was expanded by Congress to provide new coverage options, including a requirement that states cover low-income Medicare beneficiaries and providing an option to buy-in for working adults with disabilities.

The expansion of Medicaid in the USA has resulted in lower uninsured rates for those in the states that have expanded the program. However, the gap between states that have not expanded Medicaid continues to widen. The expansion of Medicaid has decreased the rate of uninsured Americans in these states from nearly forty-five million to under 29 million. In addition, Medicaid expansion has led to smaller health care disparities among whites, Hispanics, and working-age adults in these states. The disparities between these groups were mostly due to cost.

COBRA

COBRA health insurance in the USA allows a person to continue coverage through a previous employer. COBRA insurance plans offer the same benefits as when the person was still employed, including the same doctors and pharmacies. They can also be renewed for an additional two years. COBRA is expensive, so it is important to consider your finances carefully before enrolling. If you have enough HSA funds, you can use them to help pay the premium for COBRA insurance. However, HSA funds are not available for regular insurance premiums.

The eligibility requirements for COBRA health insurance are fairly straightforward. A COBRA health insurance plan extends coverage for a limited period, usually 18 months or 36 months, based on a qualifying event. A qualifying event may include a covered individual losing their job, or a spouse or dependent child becoming eligible for Medicare. The qualifying event must have occurred within the last five years of the employee's employment. A COBRA extension will allow the individual or family to remain on their current plan for an additional 18 months.

School-sponsored plans

Students who are in school in the same state as their parents or spouse can often take advantage of a family healthcare plan, but if you go to college out of state, you may find it difficult to use your family's healthcare network. Unfortunately, many insurance companies do not operate in every state, so you may be forced to use a different provider network in a new state. It is also possible that you may not like the plan, and will not continue on it once you graduate.

Student health plans are generally not as expensive as employer-sponsored plans. However, they may not offer comprehensive coverage. The best option for students is to compare the campus plan to the marketplace. Many college health insurance plans are compliant with the A.C.A. and cover essential benefits as well as preventive care. Students should check the details and coverage of a college's plan before enrolling. Choosing a college policy is not a bad idea, since most will cover preventive care and other essential benefits.