There are many reasons to buy health insurance coverage. U.S. health care legislation passed in 2010 will eventually require coverage for everyone, but even without the mandate, buying an individual plan provides a number of benefits.
Manage your medical costs....
Medical costs are unpredictable. You might rack up medical bills for many reasons. There are many things like car accidents, or even a few doctors’ appointments that can unexpectedly put you in debt. People with health insurance are also more likely to have a regular doctor and get care when needed.
An alternative to Cobra.....
Additional reasons to Buy an individual health insurance policy include if you've lost your job and COBRA coverage has run out or is too expensive. COBRA is the Consolidated Omnibus Budget Reconciliation Act, which gives workers and their families who have lost their jobs for eligible reasons the right to choose to continue coverage provided by their group health plan for limited periods of time based on individual circumstances. Under COBRA, workers ordinarily have to pay the entire premium, plus an administrative cost. Individual plans can frequently be less expensive because you can choose to reduce benefits, however some benefits may also be restricted.
You are in unique demographic...
You can also purchase an individual plan if employer-based policies are not offered or are not right for you. Other reasons for choosing to purchase individual coverage include; if you are an unmarried older adult who is self-employed or work for a small business, which is less likely to offer coverage than are larger companies. You may also need individual health insurance if you are a young adult but you are too old to be on your parents' plan( or you don't meet certain eligibility criteria). Additionally, there are a large amount of Young adults that work part-time jobs that don't provide health insurance.
Group Benefits can sometimes be more expensive...
Sometimes group health benefits depending on the amount you contribute can be more expensive for similar benefits.
Because the Government tells you to..
Finally, while you have a choice now, under recent health care reform legislation, most Americans will have to purchase health insurance by 2014 or pay a penalty. The penalty begins at $95, or up to 1 percent of income, whichever is greater, and goes up to $695, or 2.5 percent of income, by 2016. Low-income will continue to be eligible for Medicaid, a program for Americans who can't afford health care, or be eligible for re-imbursement benefits. Some people will be excluded from the mandate, such as those with religious objections, American Indians, people in prison, or illegal immigrants. New marketplaces called insurance exchanges will be set up to assist with the purchase of individual plans. It is important to note that as of the current legislation in 2014, insurance companies will not be able to deny coverage to anyone with preexisting conditions.
Here are ten simple reasons why people buy health insurance that can help you evaluate what type of health insurance will best meet your personal needs.
- Health insurance can protect you from the risk of unepected and unknown bills for health care.
- Without health insurance, expensive services may be unaffrodable for you or your loved ones.
- Health insurance can pay for services that you or your family often use.
- Health insurance can help you to get better quality care as a member of a coordinated health plan than you might get on your own.
- With health insurance, you do not have to worry about the cost of care when you are sick.
- The additional money provided by health insurance when you are sick may be more valuable to you than money when you are well.
- If you have more dependents than most people, then you may get more out of a family policy for health insurance.
- If you or your dependents have more health care needs than most people and you only pay an average premium, then you get more use from your health insurance than most people.
- You do not pay income tax on health insurance benefits so it is more valuable per dollar than the same amount in taxable pay.
- Health insurance companies generally pay lower prices to doctors and hospitals than you would pay on your own.