Major medical health insurance is an insurance policy that protects you in the case of catastrophic illness. You may need to obtain major medical insurance outside of an employer if you’re self-employed, unemployed and not covered by COBRA, if your employer doesn’t provide health insurance or if the coverage is too expensive. You may also need a major medical policy if your regular health insurance doesn’t have sufficient hospital benefits.
One of the best ways to buy major medical health insurance is to shop online. There are several comparison websites where you can get a quote from several health insurance companies. They include eHealthInsurance, GoHealthInsurance.com and HealthInsurance.org. To get the best price, you should check multiple comparison websites. Be prepared to provide your family’s age, height and weight, whether you smoke, are a college student or have any health conditions.
You can get a dramatically lower monthly price by selecting a higher deductible. You may also qualify for a Health Savings Account (HSA) if you get the right high deductible plan. An HSA lets you take money out of your paycheck without tax to pay for medical expenses. These are best for people who know what their medical bills will be over the next year. Typically, copay plans aren’t eligible for HSAs. However, if you’ve got small children that need to go to the doctor frequently, the copay plan with a high deductible is a better bet than an HSA-eligible plan.
If you’re buying health insurance on your own, you’ll most likely have a choice between Network and PPO insurance policies. It’s likely to be expensive no matter what type of policy you choose. However, remember that if you’re over 65, you may qualify for Medicare. Part A Medicare is free, and covers hospital stays. Part B requires a low monthly premium, and covers other medical fees such as doctor’s visits, outpatient care and physical therapy. You can also get Medicare supplement insurance from a private insurance company. Also, if you’re low income, you may qualify for Medicaid and your children may qualify for the Children’s Health Insurance Program (CHIP) through your state.
The new health care laws have eliminated lifetime maximums and high costs for preventive care. However, after you choose your deductible, you still need to think about coinsurance. Coinsurance is how your insurance company splits your medical bills with you. If you choose 80/20 coinsurance, for example, your insurance company will pay 80% of your medical bills and you will pay 20% after your deductible has been paid. The higher the insurance company’s share, the higher your monthly premium will be. If you don’t believe you’ll ever meet your deductible, your coinsurance isn’t as important as if you always meet your deductible each year.
For more information about buying major medical insurance, visit USA.gov.