Read between the lines when purchasing cheap health insurance
Most of us do not worry about having health insurance coverage until we become ill or experience a catastrophic event. This is especially true among younger generations. For many, simply having the cheapest health insurance available gives people a sense of security. While it’s true that one is more secure if they at least have a medical policy, health insurance that comes with a cheap price also comes with certain dangers.
The next time you find yourself shopping for health care take a look at the cheapest option available with each insurance carrier. When you analyze the plan closely you will see some of these commonalities:
High out-of-pocket maximums
A low to moderate out-of-pocket maximum is the reason people need insurance in the first place. In laymen’s terms, it is the total amount of money that you are responsible for paying in a given year. A low out-of-pocket maximum will protect you very well if a catastrophic event were to occur. On the other hand, if you have purchased the cheapest medical policy money can buy chances are you have got a high out-of-pocket maximum. This could potentially leave you owing thousands of dollars in medical bills before your policy kicked to offer assistance.
No benefits, generic only or a cap maximum on prescription drugs
No wonder the policy is so cheap …it doesn’t offer prescription drugs! This is a big no-no for obvious reasons. If you have come across an attractive health plan and noticed it has no prescription drug benefits just imagine yourself after a long hospital stay requiring expensive medication to help you with pain.
Health plans that include cap maximums or generic only prescription benefits are obviously better than no prescriptions but keep in mind that sometimes brand name Rx drugs are the only available option. If you require benefits beyond a cap maximum then you will pay full out of pocket once you go past the maximum allowed. This is dangerous in an emergency scenario because the more catastrophic the event the longer the hospital stay…the longer the hospital stay the more prescriptions you may require.
