Health insurance – Must know for all those in their twenties
Being uninsured will get you on the wrong side of the law: The Affordable Care Act that was enacted in 2010 requires every young person to get appropriate health insurance. Failure to get health insurance for a period of consecutive three months could attract a fine. The fine could be either of two things; you may have to pay a fine of $325 or two percent of the household income for one year. The fine to be paid will be the option that brings in the highest amount/ apart from the fear of getting a fine, you should be more afraid of the consequences of falling sick without having insurance. You may have to cough out thousands of dollars to cover your treatment cost.
Different health insurance options
As a full-time employee, you have a right to employer-provided health insurance: Most employers offer health insurance to their full-time employees. Given that when you are hired, you may need to go through a trial period, which may last up to 90 days, you may have to wait until 90 days before you start benefiting from this insurance provided by your employer. The maximum you can work without employer offered insurance for health is 90 days. After this, it should come automatically.
You can still count on your parents: Although you may have moved out of the house and are doing it on your own, you can still seek support from your parents when it comes to getting health insurance. Those who are under the age of 26 can still benefit from their parentâ€™s insurance. Generally, they may be able to get better premiums if they go through their parents.
You are old enough to do it by yourself: Sometimes you may not be in employment, so cannot benefit from an employer covered health insurance. This should not be a problem when there are more than enough sites that offer sales of insurance on health. Better still you can make use of price comparison sites to help you do a quick check on the different offers available from different health insurance companies.
The type of health insurance plan you choose will depend on your personal circumstances. For those who are not sick and may be comfortable doing health checks once in two years, then they can easily get away with a cheap low-cost plan. However, those with preexisting medical conditions that may require a lot of care from professionals may have to think past the issue of cost to get a plan that is the best value for money.
Know the different types of health insurance networks: When it comes to buying health insurance, you will hear names like Health Maintenance Organization or HMO and Preferred Provider Organizations of PPO. It is important to understand the difference between HMOs and PPOs. While HMOs generally offer insurance at considerably lower premiums, they also require that policyholders only work with doctors that are within their network. If you decide to go to an out of network doctor to consult, be ready to cover the cost of all treatments that you receive. However, this could be overlooked if you found yourself in an emergency situation. PPOs, on the other hand, have high premiums, but will cover your medical cost, irrespective of whether you saw a doctor within or without their network.
Based on the foregoing, you should be able to know whether the service provider for health insurance cover you considering an HMO or a PPO. Whichever you choose will depend on your personal circumstances.
Understand the deductible: Many policy holders have been frustrated after they were told that the insurance could not cover the cost of their medical expenses because they had not gone overboard the deductible. The deductible for the health insurance cover is the amount above which the insurance begins to take over the coverage for health expenses. For example, if you had a deductible of 700 USD, the health insurance company will only cover your medical expenses when the cost so far is above 700 USD. HMOs do not have deductibles.
Get covered for emergencies without spending too much in premiums: This is for those who donâ€™t have any major health concerns. Instead of paying a high premium every month and low deductible that you may never use, if you are sure that your health is good enough such that you may not be in the hospital for six months or more, then you can go for a low premium high deductible. In this way, you will pay less overall. However, bear in mind that this could also mean you spend more of your own money if you were to need a treatment.