The Affordable different to Traditional Individual Health Insurance

As a way to begin let’s define what I average by traditional health insurance. The traditional health insurance policy is composed of:

The deductible – This is the amount that you have to pay for a medical event before your health insurance will start to pay. In today’s world that deductible is often $3000 or more.

The coinsurance – After the deductible is met most policies require that the insured pay a percentage of all medical costs up to a maximum. Usually the insured pays anywhere from 20% to as much as 50% of every dollar billed.

The copays – In an attempt to make routine health care easy to reach many policies include a copay for doctor visits and prescriptions in lieu of having to meet a deductible. An example of this is the $10 office visit copay.

Maximum Out-Of-Pocket Costs – This is the most that an insured can expect to pay in spite of of how large the medical bills are. As a general rule the maximum out-of-pocket costs for an individual are limited to around $7000. This can be a very misleading number because it assumes that all of your providers are in your network. If they are out of network your costs can be considerably higher.

And finally the “Network” – Virtually every traditional individual health insurance policy is tied to a network of providers. The narrower the healthcare network, the lower the premium. There is too much wrong with “networks” for this article. Suffice it to say that “networks” are the enemy of the healthcare consumer (you).

The Problem Facing Working Americans

The problem is simple: health insurance premiums are too high for most working Americans in the absence of a subsidy and when combined with extremely high deductible and out of pocket costs, healthcare becomes unaffordable. Let’s look at a associate of examples right here in North Carolina.

A non-smoking associate ages 62 and 63 find that their lowest premium option with BCBS of NC is $1999 a month for a $13,300 family deductible with no copays. A plan with a $7000 deductible and $25 office visit copays would cost $2682 per month.

Assuming the least expensive plan the annual cost would be $23,988 yearly. And if either person had a medical event such as cancer, the actual cost for healthcare would be $37,288. You have to ask: “Why already have health insurance?”

A non-smoking 30 year old associate found that the least expensive plan would cost $787.84 a month for a $13,300 family deductible with no copays. The least expensive plan that included copays was $1056.88 but had a $7000 deductible and the most restrictive network. Assuming the least expensive plan, should either member of this young associate have a medical event their total annual cost (deductible + premium) would be $16,454.08. That is a devastating amount of money for a young associate.

The simple solution to this problem is a Fixed assistance Health Insurance. Unlike a major medical policy where the policy pays for all eligible expenses after the deductible and out-of-pocket maximum, a Fixed assistance Health Insurance Policy states exactly how much will be paid for each stated service. Examples of stated sets might include: daily assistance for in-hospital stay of 24 hours, specific dollar benefits for stated surgeries, a specific assistance for doctor visits and other stated charges. A great Fixed assistance Health Insurance Policy will have very strong benefits, a wide range of stated covered charges, a very comprehensive surgical schedule and more. The most important service that Fixed assistance Health Insurance Policy can include is medical bill negotiation, a service that can considerably reduce out-of-pocket expenses.

What is really great about this kind of policy is that empowers the insured to be a better consumer. Knowing how much your policy will pay you for a stated medical service allows you to better shop and negotiate the price. But the really great thing about this policy is the affordable premium.

The associate ages 62 and 63 are an actual client of mine who had been uninsured for 5 years as a consequence of the high premiums. I was able to put them into a strong Fixed assistance Health Insurance Policy with a $5,000,000 lifetime assistance for $683 a month. That is an annual savings of $15,792. As I explained to my client the Fixed assistance Health Insurance Policy will do a great job of covering 70% to 80% of everything that can happen. If they truly saved the $15,792 difference in premium they would have incredible access to healthcare with very little out of their own pocket.

Back in 2014 I was diagnosed with colon cancer and had a uncompletely removal of large intestine (CP44205). Back then I was covered on a traditional major medical policy. My total out-of-pocket costs were more than $7000. Had I had the Fixed assistance Plan that I sell today not only would my costs have been zero but I would have received a check from the insurance company for $4619. Not every medical event would have resulted in a check and many might have resulted in out-of-pocket costs of several thousand dollars, but in general the savings would have more than offset those costs.

So, before you choose to go without any health insurance I strongly suggest that you take a hard look at a Fixed assistance Health Insurance Policy.

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