How to Buy Your Own Health Insurance

Buying individual health insurance can be an intimidating process to some, but that doesn't negate its financial and [[[healthcare]] importance. This guide can help you learn how to buy your own health insurance and find coverage and benefits you can afford.

There are over 47 million uninsured people in the United States alone, a strong indicator that buying individual health insurance is difficult and can be expensive. http://www.webmd.com/news/20070829/47-million-lack-health-insurance http://www.forbes.com/entrepreneursfinance/2007/12/06/unitedhealthcare-aetna-signa-ent-hr-cx_mf_1206healthinsurance.html While finding coverage on your own is relatively easy if you're young and healthy, there are still many people who try to buy individual health insurance either can't find coverage or can't afford the coverage they're offered.http://www.webmd.com/news/20071203/buying-health-insurance-on-your-own?src=RSS_PUBLIC Learn how to discover and review your health insurance options by reviewing the steps outlined in this health insurance guide.

Rights and restrictions on buying health insurance vary from state to state. Some states allow insurers to deny coverage to people with pre-existing conditions, while others require insurers to offer plans to high-risk individuals (though insurers usually charge higher premiums for such plans).http://www.forbes.com/entrepreneursfinance/2007/12/06/unitedhealthcare-aetna-signa-ent-hr-cx_mf_1206healthinsurance.html http://money.cnn.com/magazines/moneymag/money101/lesson16/index5.htm Always research your individual situation before making any decisions about insurance.

1. Research the health insurance options and regulations in your state.http://www.alec.org/AM/pdf/2009StateLegGuide.pdf Check NAHU's Healthy Access Database for information on your state's policies.http://www.nahu.org/consumer/healthcare/topic.cfm?catID=22
2. You can protect yourself by not going without coverage for more than 63 days at a time.http://articles.moneycentral.msn.com/Insurance/InsureYourHealth/Your5MinuteGuideToHealthInsurance.aspx
   • Keeping coverage gaps under 63 days means you minimize the exclusions you could face for pre-existing conditions.http://www.dol.gov/ebsa/faqs/faq_consumer_hipaa.html
3. If you have access to COBRA (continuation of benefits from previous employment), paying for your old job's health insurance can offer better and more complete coverage than individual plans.http://www.webmd.com/a-to-z-guides/features/filling-health-coverage-gap http://www.smartmoney.com/consumer/index.cfm?story=20030929
4. If you only need temporary coverage, a short-term plan can be easier and cheaper to get than a regular policy.http://www.webmd.com/a-to-z-guides/features/filling-health-coverage-gap?page=2
   • You can get short-term insurance directly from companies such as Assurant Health or you can search for plans on sites like eHealthInsurance.com.http://www.assuranthealth.com/corp/ah/HealthPlans/Get-A-Health-Insurance-Quote-Now

Take time to investigate what kind of plans you have access to, preferably before you have a change in your health care coverage.http://www.smartmoney.com/consumer/index.cfm?story=20030929 You don't want to sign up with the wrong carrier and be trapped by monthly premiums that don't provide the best benefits you can buy.

1. To get a list of brokers who work with multiple carriers, so you can get an overview of what's available in your area, check out eHealthInsurance.com.http://www.forbes.com/entrepreneursfinance/2007/12/06/unitedhealthcare-aetna-signa-ent-hr-cx_mf_1206healthinsurance.html
2. Insure.com also has a national database of carriers.http://money.cnn.com/magazines/moneymag/money101/lesson16/index4.htm
3. Contact the National Association of Health Underwriters for a list of local brokers.http://www.nahu.org/
4. Try to find a broker who works with multiple companies, so he can find the right insurer for you.http://www.smartmoney.com/consumer/index.cfm?story=20030929

1. High-Risk Pools: Some states offer high-risk insurance pools, where people who have been denied coverage can apply for state-subsidized insurance.http://www.naschip.org/states_pools.htm
   • There are disadvantages to these pools, including waiting lists and higher premiums.http://www.cobrahealth.com/statehighriskpools.html
2. Medicaid: A government program to provide care for people with limited incomes.
   • For more information, visit the Centers for Medicare and Medicaid Services.http://www.cms.hhs.gov/MedicaidGenInfo/
3. State Children's Health Insurance Program (SCHIP): A program for families not eligible for Medicaid who cannot afford private insurance. This program can possibly provide coverage for your children.http://www.insurekidsnow.gov/

1. How many doctor visits are you allowed?
2. How many emergency room visits are covered?
3. Can you see any doctors, or only practitioners within a certain network?
4. What prescription drug benefits are offered?http://www.forbes.com/entrepreneursfinance/2007/12/06/unitedhealthcare-aetna-signa-ent-hr-cx_mf_1206healthinsurance.html
   • Some plans may deny coverage of medications and expenses related to pre-existing medical conditions.http://www.webmd.com/news/20071203/buying-health-insurance-on-your-own?src=RSS_PUBLIC
5. If you have children, check if shots and regular check-ups are covered.
6. If you may become pregnant, see if your potential plan has maternity benefits.
7. Do you want to forgo dental and vision coverage to find a more affordable plan?http://www.smartmoney.com/consumer/index.cfm?story=20030929
8. What co-pays and deductibles will you be responsible for?
   • Most lower-cost plans have higher deductibles. Don't make the mistake of choosing a plan for its affordable premiums if you can't pay the deductible.http://www.forbes.com/entrepreneursfinance/2007/12/06/unitedhealthcare-aetna-signa-ent-hr-cx_mf_1206healthinsurance.html
   • Be cautious with affordable plans that restrict coverage. If the plan only covers a portion of hospital stays or drug costs, it isn't worth buying.http://www.consumerreports.org/health/insurance/health-care-on-your-own-1-08/overview/health-care-on-your-own-ov.htm
9. Some high-deductible policies let you meet IRS requirements to open Health Savings Accounts (HSAs), thus making you eligible for a tax break.http://www.ustreas.gov/offices/public-affairs/hsa/ http://articles.moneycentral.msn.com/Insurance/InsureYourHealth/GetCheaperMedicalCoverageWithATaxBreak.aspx
   • Check HSA Insider to find such policies.http://www.hsainsider.com/
   • TIP: CNNMoney's Health Plan Navigator lets you rate the importance of different health care variables. You can then compare up to three plans with the navigator.http://cgi.money.cnn.com/tools/healthplan/healthplan_101.html Please note that this tool requires you to enter in plan details for comparison.

There are other options, some more appealing and accessible than others, for individuals who have been rejected from, or cannot afford, individual insurance plans.

1. Check if any group you're a member of offers access to health insurance.http://www.smartmoney.com/consumer/index.cfm?story=20030929 Group rates are usually lower, so if you're a member of a union or trade association, you may have access to affordable coverage.
   • For example, membership in Media Bistro, available to writers and media professionals, provides access to insurance plans.http://www.mediabistro.com/avantguild/
   • Freelancers Union offers plans in New York.http://www.freelancersunion.org/
   • Fractured Atlas, an artists' group, also has insurance options for its members.http://www.fracturedatlas.org/site/healthcare/
   • Or you may be able to access group plans via your college alumni association.http://www.webmd.com/a-to-z-guides/features/managing-your-own-benefits
2. See if you can form your own group.http://www.smartmoney.com/consumer/index.cfm?story=20030929
   • In some states, a business with just two employees can qualify for group plans and their lower rates.

The content in this page is not a substitute for professional financial advice. Please contact a finance professional before using the information presented here.