“Wow! That’s a great rate…What’s the catch?”
Maybe there isn’t any. An insurance company may be extremely efficient and have negotiated better deals with doctors and hospitals than other companies. If its costs are lower, it can offer cheaper rates. Of course, there are other ways a company can limit its costs.
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Underwriting – This is the process by which an insurance company decides which applicants it will actually accept. It’s like 100 guys trying out for a football team, but only 50 making the squad. But the company is looking for healthy people, and everyone in your family is pretty healthy. So, there shouldn’t be any problem. right? Not necessarily, an insurance company looks at health problems in terms of how much money it may have to pay out in later claims. So let’s say that you had a little back injury a couple of years ago. It still aches occasionally, but it doesn’t slow you down. Your not-so-bad back may stop you in your tracks with some companies. They reason that back injuries may never go away; they may eventually require surgery and could cost the company a bundle. There are lots of other “little” health problems, that some companies won’t think are so little.
Remember that all insurance companies don’t underwrite exactly the same way. Some conditions and diseases which are unacceptable to some companies will be okay with others. Generally, a company which tries to offer the very lowest insurance premiums may also have the toughest underwriting.
How can you possibly know how companies would be most likely to accept you and your little health problems? You probably can’t. However, a health insurance consultant who has worked with lots of companies generally knows what will fly and what won’t and will try to match you with the right company.
- Doctors and Hospitals – Almost everyone looking to buy health insurance first checks to see if their doctor or doctors are in the network, but there other things to consider. Not all hospitals are accepted by all insurance companies; if this is important matter to you, then you should check. What happens if you have a medical problem, and can’t get to your own doctor in time? What if you are out of town or even out of country? You need to know how a company will react, what it will require of you and how much money this type of situations might cost you. Again, these are question a good agent can help with.
- Coverage – One company with a $500 deductible could be completely different coverage than another company with a $500 deductible. Experienced agents help to highlight what differences exist, and how they apply to you. Other benefits you may want in your plan that may or may not be covered are things like maternity, mental health and chiropractic visits. Many Association plans are very good, but some are very limited in coverage. Many insurance companies offer health insurance through associations so they can bypass state laws on minimum levels of coverage that they must maintain in their health plan. If you work with a professional that knows the market, you will get the best value.
Feel free to call me (1-888-323-8832) or e-mail me at
quotes@lowcostpahealthinsurance.com.
Chris Powell
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