Why Do You Need An Affordable Health Insurance Policy?

Access to health care has become a concern for many people. The biggest barrier to gaining access to medical care is affordability of insurance premiums. If you are a unskilled laborer or professional, paying insurance premiums is a problem. You may be among the 25 million Americans who have health insurance and can't afford the gap between your medical bills and what your insurance covers. Maybe you are part of the 46 million who can't afford health insurance at all and delay seeking medical treatment until it is too late.

Cost of Insurance

According to Aetna, a family of four, husband, wife, two children without any chronic illnesses would pay over $800 per month for a $6,000 family deductible. This averages to $9,600 per year for premiums alone. If the family needed the insurance for a major health problem, it would have to spend $6,000 of its own money before the insurance kicked in the 80 percent coverage the $800 per month premium buys. The family would have to spend $15,600 before the health insurance would pay 80 percent of any hospital costs.

Self-employed

When purchasing insurance for yourself or your small group of employees, health insurance plans come with more restrictions because of cost. Often individuals or small businesses that purchase health insurance do so at the cost of what is provided. Some insured families can spend up to $2,000 per year on medical bills and cost sharing of premiums, according to the Kaiser Commission. These additional expenses can put a strain on a tight budget if a family averages less than $10,000 per person in the household. If one family member has a chronic illness, the cost contribution goes up because of necessary prescription drugs, according to the Kaiser Commission.

Underinsured

You may not qualify for public assistance because your income doesn't meet federal and or state guidelines for Medicare or Medicaid. Low-income workers may have to purchase their own insurance because they are not able to afford the employer-sponsored insurance. This insurance often has limits on the type of services provided. Drug coverage, vision, dental and mental health services are often not covered, according to the Kaiser Commission. You may go without these services because you can't afford to pay directly out of pocket.

High-risk Pools

Many states offer high-risk pools for individuals who have been denied insurance coverage. The cost of high-risk insurance is significantly higher and only attracts individuals who have the income to pay for coverage. When you enroll in these pool plans, coverage is not guaranteed because these types of insurance still only provide minimum coverage and may severely limit coverage, according to HealthCareReform.gov.

Financial Stability

According to the Health Insurance Overview website, affordable health insurance promotes health by increasing access to care. If you have access to affordable insurance and can pay for doctor visits, you will use preventive services more often. Many people without health insurance often go to the emergency room for treatment of illness that preventive care could have prevented. If you use the ER for health services, it is because you can't afford health care. This type of behavior drives up the cost of care for everyone and can cause insurance rates to increase, making it less affordable to more people.