Most U.S. citizens get health insurance through an employer-sponsored plan. But if you are self-employed or your employer does not offer health insurance, you'll need to turn to the private market. Individual health insurance plans typically cost substantially more than a group insurance plan offered through an employer. But purchasing health insurance can save you money in the long run, especially if you develop a health condition and accrue costly medical bills.
Step 1
Research the cost of prospective plans. Find out premium rates, whether the premium is fixed, monthly cost, annual deductibles, co-pays, cost of doctor's visits, costs of hospital care, cost for prescription medications and the maximum payout. Various websites can help you compare rates and coverage. Keep a running list of quoted prices.
Step 2
Find out what's covered, such as inpatient hospital services, outpatient surgery, skilled nursing care, mental health care, physical therapy, maternity care and dental care. Also ask about what's not covered. Certain medical conditions may be excluded from coverage, or you may have to pay extra to go outside the health plan's network of doctors, hospitals and other providers for services.
Step 3
Contact professional, trade or alumni associations if you are a member. Many associations offer group health insurance to their members. Check with your state insurance department to avoid scams.
Step 4
Apply for coverage through COBRA if you have a pre-existing condition and you've just lost your job at a company with more than 20 employees. The Consolidated Omnibus Budget Reconciliation Act allows workers and their families who lose their health benefits to continue group health benefits provided by their group health plan for short periods of time under specific circumstances, such as job loss.
Step 5
Be prepared to disclose health information, including past or current medical conditions, any pregnancies, medication use or hospitalizations, alcohol, drug or tobacco use, whether you have ever been rejected by an insurer, your age, height and weight. The company may also require a blood, urine or saliva sample and medical records.
Step 6
Apply for health care coverage after determining the plan that fits in your budget and provides the care you need. Work with a knowledgeable health insurance broker or agent. A good agent or broker can provide applicable information on state law, explain a company's rate system, explain whether a bid is reasonable and help you find quality coverage.
Step 7
Disclose any pre-existing health conditions. If your insurance company finds out that you have withheld information, it can cancel your policy. Mention your conditions early in the process to prevent rejection when it sees your records. A rejection by one company can make it more difficult to get coverage elsewhere, according to "Kiplinger's Personal Finance."
Step 8
Ask your doctor to write a letter if you feel you've been wrongly rejected. For instance, if you are rejected because of mental health issues, a doctor could explain that you've been in counseling for a situational problem, such as grief, and don't suffer from a mental illness.
Tips and Warnings
- If you're want solid health care coverage but can't afford an expensive premium, you might want a plan with a higher deductible. You can also cut health care costs by opting for a health plan through an HMO. If you buy high-deductible health insurance, pay into a health savings account, or HSA, to pay for out-of-pocket medical expenses. High-risk clients may have an easier time finding coverage with a large insurance provider. Apply to your state's high-risk pool if commercial insurers reject you.
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