Lessons Learned
About Buying
Cheap Family Health Insurance
Cheap Family Health Insurance: Lessons learned regarding health insurance for family. Extremely valuable tips and warnings you need to know before signing up for a plan.
As costs sky rocket, I and every other human, find themselves ready to do some shopping around for better or cheaper insurance. For me, it seems as the last few years have went by, my premiums keep going up (even though I have made little to no claims), but my income for the year doesn't go up. So investigating some low cost family health insurance plans is something I have done a lot of.
But let me warn you!! Don't get caught up in the price...as much as it is very tempting to do! Company after company will offer you cheap rates. But when reading the limits and exclusions, the fine print will reveal that the policy is basically worthless for most everything that you and I would normally try to claim.
So, BUYER BEWARE!
Must Read Alerts!
Here's a few items that we need to keep at the front of our minds when looking for a cheap family health insurance policy.
Alert #1
Did you know that almost all companies will offer insurance plans that have strong pre-existing exclusion periods?
"What does that mean?", you may ask. That means that if you have been treated, usually in the previous 6 months, for an illness/condition, you will not be covered for ANYTHING related to that issue. And believe me, when I say related...the insurance company will do there very best to connect ANY ailment to the pre-existing problem.
Continuing on that subject, the waiting period of the pre-existing exclusion period does vary, but can go as high as the 1 year mark. So, if you are able to sustain from a doctor visit for a pre-existing condition for 6 months before changing plans, you could actually get coverage as soon as your new insurance plan is in place. But again, if you were seen for the condition in the 6 months prior to the new plan starting.....well...you're probably out of luck!!
Side Note
And don't forget, sadly to say, it is in the best interest of a health insurance company to deny coverage to customers with pre-existing conditions. I don't like that, but the truth is the truth. They know that they are much better off to exclude you or at least charge a higher rate.
Alert #2
Here's an IMPORTANT FACT! Most often I, and lots of other folks, tend to think..."I don't have a pre-existing condition!"
A pre-existing problem can be more than a heart condition or cancer. An insurance company (whether it's a cheap family health insurance or high dollar plan) looks at practically everything! They will label as pre-existing, conditions such as:
- High Blood Pressure
- Asthma
- Allergies
- Acne
Side Note
I'll never forget a few years back when my wife and I first were married....we changed health insurance companies. My wife was immediately bumped into a higher premium bracket because she had been seen and treated for an allergy in the past year. It was later found out that in that same time period, that she did not have the allergy. The new insurance company still kept her in the higher risk bracket. Are you kidding me??
Final Advice
I believe when all is said and done, whether your shopping for cheap family health insurance or changing a benefit plan within the same company, you have to do some investigative work. The fine print of a policy is where companies usually sweep the dirt they hope you never learn about. So read through the limits and exclusions as best as possible. Learn what they mean and don't feel bad about asking questions.
With the staggering number of 60% of families who file bankruptcy claiming that medical bills were the "icing on the cake", we do have to provide the best health insurance for family that we can afford.
Also, whether you're trying to get cheap family health insurance or the most expensive, be upfront with the insurance company about pre-existing conditions (even allergies, etc.). Too many times we tend to omit these items on our application hoping we can slide it by. What could happen then, is if you are diagnosed with a major medical problem, the insurance company will fiercely comb through your past files and doctors records looking for anything they can to deny you coverage for your illness. And if they find that you were treated for "X" condition, and you failed to state that on your application, they CAN deny you coverage for an ailment or even terminate your policy entirely!
