Your Health Insurance Options
With so many insurance options out there, you may feel overwhelmed. Luckily, there are ways to filter out the best options for you based on your own lifestyle and preferences. Below are some common plans.
Family coverage - Many insurance companies offer special rates to cover multiple individuals in a family. If you cover your children, you have the added benefit of locking in their rates and coverage for their future, so after they graduate from college, they can continue coverage through your insurer without drastically increased rates or pre-existing exclusion periods.
Individual coverage - If you're a single individual or freelancer, who wants individual coverage outside of work, you may even have the added benefit of writing off premiums on your taxes.
HMOs - Helath Management Organizations, or HMOs, offer you the best possible rates because you're taking advantage of in-network care. Most HMOs offer coverage for the entire family, and you can generally take advantage of care providers that are close to your residence.
Preferred provider organizations - Preferred provider organizations offer you more extensive coverage -- and generally more flexibility - than HMOs.
Prescription drug plans - Prescription drug plans are often necessary to cover the high costs of prescriptions. In fact, these costs represent the largest expense for an individual's health care. Unfortunately, even Medicare won't fully cover all prescription drugs, and you may have to purchase a supplemental plan to help cover the costs of drugs.
Discount programs - Discount programs are not full health insurance; however, they provide discounts on essential medical costs.
COBRA coverage - COBRA coverage is a temporary solution to provide coverage at the same fixed rate offered through employers' group coverage. Because COBRA is temporary and contingent upon you leaving your previous employer (who covered your health care), many individuals, including freelancers and individuals who have been out of work for long periods of times, may not qualify for COBRA rates.
Short-term coverage - Short-term coverage is a great option for freelance workers, contractors, and individuals who are in transition. Most major companies offer short-term coverage.
Student insurance - Student health insurance is required at most schools. Unfortunately, university-provided coverage is limited and doesn't give you the flexibility and choice many students may want. Private health plans for students offer more options, including insurance for studying abroad and more comprehensive dental, prescription, and alternative care options.