Group and Private Insurance

Medical insurance changes constantly.  The more knowledge you have about private health insurance the more likely you are to find the plan that offers the best value for you and your family.  If you are surprised by the five things listed below, you may want to find a reputable insurance broker who can help you select your policy.

Your zip code matters.

Your location can have a big impact on your premiums.  People will tend to visit doctors and hospitals close to their homes.  Since doctors in different locations can charge differently, your location can impact the cost of your health care.

The cost your insurance company has to pay is passed on to you the consumers.  If doctors charge more in your area, your insurance premiums will probably be higher as well.

Your family may pay less if you purchase separate health insurance policies.

This is not true with most companies or with most families.  However, many insurance companies use rating systems that are biased towards certain types of families.

An insurance policy that covers one parent and a child may be more expensive than two separate policies that cover the same two people.  A policy that covers parents in their fifties and a child or children may also cost more.  Policies that cover maternity may be loaded up with extra benefits that you find unnecessary.  The family members that don’t need maternity insurance will often do better by purchasing separate policies.

Group Insurance is usually more expensive than individual insurance plans.

Most people are used to a world where buying in bulk means that you getting things more cheaply.  A gallon of water costs less per ounce than purchasing separate small bottles of water that add up to a gallon.

This isn’t usually true for health insurance.  Group health insurance policies usually are forced by law to accept les healthy people.  This drives the cost of the policies higher.  Since individual health insurance policies are usually underwritten, they can charge less because the policy holders are usually healthier.

COBRA is usually more expensive than individual health insurance plans.

COBRA is simply a group insurance plan.  COBRA is often twice as expensive as a similar individual or family health insurance plan.  It usually costs the consumer more than the same group insurance plan did when they were employed by their former company.  This is because COBRA is rarely subsidized by the former employer.

Insurance companies treat pre-existing conditions differently.

Being denied by one health insurance company for a pre-existing medical condition doesn’t not mean that one will be denied by all carriers.  Conditions like high blood pressure or depression can result in different underwriting decisions by different carriers.  One company might deny coverage.  A second company might accept an applicant but raise his or her rate.  A third company might accept the applicant, but eliminate outpatient coverage for the condition.  A fourth company may approve a policy with no rate increase.

An experienced insurance agent can help you apply with the right company.  Be sure to consult an agent before applying if you have any questions about your medical history. An agent can save you a lot of time and money by directing you towards the right plans.

Do your research or work with a good health insurance broker.  What you don’t know can hurt you or cost you more money.  Do your homework before you apply for coverage.