Health Insurance 3
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Suppose my employer has fewer than twenty employees. Is there any way I can continue my health insurance if I lose my job?
Some states have continuation laws that are similar to the federal COBRA law. Your state insurance department or an insurance broker should be able to tell you if there is some type of health insurance continuation law in your state.
Is it advisable to use the conversion option in the group plan?
The conversion option will give you continuity of insurance. It is also useful if you or your dependents have health problems that might make it difficult to get a new health care policy. If you and your dependents are healthy, however, a policy may be less expensive and better than the conversion plan. Shop around.
Should I join an association to get their group health insurance?
If you will be joining an association only to get their group health plan, ask to see a copy of the policy and ask about the rates for coverage for yourself and your dependents. Not all group or association plans are created equal, and some may not give you the coverage you need.
What will a good health insurance policy for myself and my family cost?
That figure varies greatly according to where you live, how old you are, how many dependents you have, and whether you or family members have had previous health problems and what type of plan you choose. As a rough guide, the average premium paid by a business with fewer than 10 employees to cover a family of four was $700 a month in 2004. A single, 58-year-old woman living in California would pay $428 a month for insurance ($1700 deductible) from a national known carrier in 2004. Meanwhile, a New York resident was paying more than $1300 a month to cover his family.
Those who opt for early retirement packages or who are laid off by their employers may be able to get insurance bargains, however. A computer programmer in his mid-fifties who was laid off when his company merged with another firm took advantage of retiree insurance offered as part of the severance package. He was paying only $140 a month for health and limited dental coverage for him and his wife. Coverage was through an HMO.
Is group health insurance cheaper than individual coverage?
Not necessarily. In fact, an individual health insurance plan may cost less and offer more than small group plans. The only way you can be sure which would be best for your circumstances is to compare rates and features of a group policy to an individual policy. Make sure you read policy brochures carefully since some plans that say they are for individuals are really small group plans in disguise. One insurance company, for instance, has one plan it bills as being an "economical health insurance program for individuals" and describes another as "an opportunity for individuals to enjoy group benefits and group rates." The two plans are identical and both are small group plans. The only differences between them are the name of each plan and the artwork in the brochures describing them.
What should I look for in a health insurance policy?
Most people choose insurance based on rates and deductibles. But rates and deductibles are less important than your ability to continue coverage, warns health insurance expert Hal Zoller. Zoller, who owns Resource Equity Group, an insurance firm in Greenville, South Carolina, specializing in health and life insurance, says it's important to "know what you are buying up front. Get information about what kind of policy you are buying . . . and under what conditions it can be canceled," Zoller says. "Make sure you are not vulnerable to losing coverage. If you have group coverage tied to employment and you go out of business or are unable to work, you will lose coverage and you won't be able to get insurance elsewhere if you have any kind of medical condition at that time."
If you are buying insurance for only yourself and your dependents or are buying it for yourself and one or two other employees, Zoller suggests you look for a policy that:
- is a true individual policy, not a small group plan being sold to individuals
- does not tie eligibility to employment
- offers comprehensive major medical coverage in or out of the hospital
- is offered by a company that is committed to health insurance as a speciality, has an A or A+ rating by A. M. Best & Co., and at least $100 million in assets
- offers you some flexibility in tailoring coverage to your needs
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