Act Makes Individual Plans More Lucrative

The Affordability Act and other health reforms have changed the perception of Americans about buying health plans. And the scenario is not much different when you are looking to purchase individual medical plans. However, people are still sceptical and have doubts about the changes that these reforms will bring in to the insurance plans.

First and foremost, the reforms do not mean that you have to pay higher premiums. In fact, if you are looking to buy an individual medical plan, you could very well end pay paying premiums that are cheaper by 14 to 20 %. Additionally, Americans are now eligible to tax credits that enable them to access quality but affordable health plans. Tax credits will so help in premiums depreciating by about 60 % in individual health insurance plans.

It is also highly unlikely that people have to pay more for co-pays and deductibles. It is because there would be a cap on how much a beneficiary pays from his pocket. Also no individual has to pay more than a certain percentage of his income for his health plan. To ensure that everyone has access to affordable healthcare, they will be provided with tax credits.

Individual plans now will come as a package of essential benefits. This will include prevention and wellness benefits at no extra charge. Recommended vaccination services will also be covered without any changes in deductibles and co-pays. They will have access to the Exchange that will enlist the various individual options on offer. People can compare benefits, costs, coverage and then pick a plan that suits their needs and financial circumstances.

People buying individual health insurance will be able to choose their own doctor from any of the participating primary care providers. Also prior authorization will no longer be required when a person wants to see an ob-gyn physician.

The Act prohibits insurance companies from placing lifetime limits. Individuals, while buying their plans, will no longer have to worry about the costly out-of pocket expenses when the coverage runs out.

Buying individual health plans will no longer be a problem for people with pre-existing conditions. Starting 2014, no person will be denied medical coverage based on their existing medical conditions. Till then, uninsured Americans with pre-existing conditions will be provided healthcare through a temporary subsidized high risk pool. This will protect the beneficiaries from medical bankruptcy. However, for children looking to buy individual plans, they can no longer be denied coverage, even if they have pre-existing medical conditions.

The Act also ensures that individuals will always have choices of affordable quality health insurance whether they switch or lose jobs, or move or get sick.

Buying an individual plan definitely is a costlier option than going in for a group or family insurance. But when you are on your own, or your family insurance does not cover you or your employer does not provide coverage or you are self employed, you have only two choices- either to go for a costly but comprehensive plan or to stay without one at all. And when it is a matter of your health, it is better to choose the former!!!

Shaun Mike is an expert on US health insurance plans. He specialises in buying individual health insurance plans and has written several articles on it for many years now