Merritt Personal Lines Manual: Chapter 9 Buying Your Own Coverage
If your employer does not provide healthcare insurance -- or if you're self-employed -- you can purchase insurance on your own. Unfortunately, you'll wind up paying more for your own insurance than an employer or other group would -- since insurance, like most other things, is cheaper by the dozen.
Another option is to obtain health insurance through a group. By becoming a member of a trade association, labor union, college alumni association, church group or other similar entity, you'll be eligible for any member benefits provided that often include health insurance at reduced costs.
If you do have to seek coverage on your own, you'll want to shop around for the best coverage at the best price. You can contact an insurance company directly or you can go through an agent. This will help you find the best overall deal. You also will want to check with your state insurance department to see if there have been a lot of complaints about the insurance companies you're considering.
You can even check out the insurance companies' financial stability ratings. A.M. Best Co. rates each company on a letter scale from A to F, in order to provide an overall indication of the company's ability to meet its policyholder obligations. Their ratings are based on financial strength, the company's market profile and operating performance. For instance, A++ and A+ indicate Superior while F indicates the company is in liquidation. These ratings can be found at your local library or on-line.
These days, you should be offered a choice of the various medical plans we've discussed. These are, in order of decreasing cost:
- a Medical Expense plan (full freedom of choice plan);
- a Preferred Provider Organization (PPO); or
- a Health Maintenance Organization (HMO).
If your doctor is already a contracting provider with a PPO or HMO, you may be able to save a good bit of money by going with one of the more restrictive plans -- and you'd still get to see the doctor of your choice. In other words, read the preferred provider list or the HMO's provider list, before you decide.
