Low Income Health Insurance - What Are Your Options

Those persons with low income may not think they can afford to purchase health insurance. The reality is that within the American health care system, those without insurance may suffer catastrophic financial losses due to illness. Everyone gets sick and a good way to be responsible is to set aside some money for these expected expenses. A good way to do this is with a Cafeteria Plan also know as a has (health spending account). This is a tax-free way to pay for regular health expenses such as check-ups, doctor visits for minor things like colds and flu, as well as prescription medications and health insurance deductibles. Obviously, for someone with low income, this may be difficult to set aside money, but these programs can be set up through the person's employer so that money is held out from the regular paycheck. This actually works to the benefit of the account holder because if these expenses were paid out of pocket, the money would also be taxed later as income. The HSA excludes the money set aside from taxes, but it has to be completely used on approved expenses as any left over dollars are forfeited.

If you do not obtain insurance, but get sick or injured, you will still be provided care. Often, though, the bills will still be expected to be paid which could result in bankruptcy and the repossession of houses and automobiles. It is simply more prudent and responsible to obtain insurance beforehand to reduce or eliminate the likelihood of such an event taking place. The best place to start, if you do not have insurance provided through your employer is to find out about the insurance companies in your state. Health insurance companies are not allowed to sell insurance to those residing in other states, so you will need to consult with a provider within your state of residence. There are sites which can aggregrate this information for you based on your zipcode, so just do an internet search. Otherwise, the phone book is a good place to start.

Other Options for Low Income Health Insurance

You need to look for plans compatible with HSA's or otherwise have a set low monthly premium. Depending on where you live and what you can afford you may need to do some digging. Don't be discouraged, and keep in mind that a hospital stay for a heart attack or major automobile accident can run into hundreds of thousands of dollars. You will never pay that much in premiums or deductibles, so if that kind of thing ever happens to you, you will be protected from losing everything else you own.

Sometimes you may be able to find a group policy or lower rate like this. A group policy is usually where a group of individuals, say a church or organization, get together and purchase insurance. Companies can offer it cheaper because they have a larger pool of individuals who are buying insurance, thus somewhat reducing their risk which is spread out over a larger number of persons.

HMO's are usually a cheaper option with the main drawback being there is a network of providers (doctors), and you are required to use these. This may cause you to have to change from the doctor or pharmacist you normally use, so it is good to be flexible. Often certain hospitals are not covered and therefore will cost significantly more, so it is something you want to know ahead of time before an emergency presents itself.

There are also some government programs primarily to help those in need such as children or the disabled. If you fall into one of these groups, or are the primary caregiver for a child, or disabled person, you may be able to obtain insurance benefits for them under Medicaid or a state-run program. Again, research is going to be required to see what kind of assistance may be available to you.

There are also certain rules under something called HIPPA which is a government rule allowing you to have a certain amount of portability for insurance in the event you lose your job. You have a certain amount of time to obtain coverage from somewhere else, in order for these protections to be in effect. Since they do expire, you will need to act quickly, otherwise you risk being denied coverage due to any pre-existing conditions you may have.

When looking over all your low income health insurance options don't get frustrated. Just remember that the most important thing is to be insured.