Health insurance is not only expensive but many beginners also find the whole health insurance system challenging. There are a number of options to get health insurance from a variety of different sources such as from a private insurance company, from the job, University as well as the government. It’s not easy to find the best option when one is looking for low cost health insurance options. Here is a list of some of the major low cost health insurance options available to you.
It is a social welfare program offering comprehensive health insurance to people with low income. It is free health insurance for qualifying people and there are no monthly premiums in most cases. However, you need to meet the low income guidelines to be eligible. All states have different criteria for Medicaid eligibility. For instance, most states offer Medicaid to individuals with income levels up to 138% of the federal poverty level.
Short Term Health Insurance
This type of insurance usually costs a lot less than the permanent comprehensive health insurance but it is only good for temporarily coverage. These plans usually offer insurance cover for a period of one month to 11 months and these can’t be renewed. It is a good option for people who want insurance coverage for some catastrophes but this is not meant for everyone. Also, it does not satisfy the requirements of the Affordable Care Act which means you will have to pay tax penalty for being uninsured.
Job-based Health Plan
Most businesses in US provide subsidized health insurance for their employees as well as families of the employees. While this type of health insurance is common for employees of large companies, it’s not as common for employees of small businesses or part-time employees. There is usually a short waiting period of 30 to 90 days after enrolling in the company sponsored health plan. For this insurance coverage, part of the monthly premium is paid by the employee and part is paid by the employer.
Spouse’s Health Plan
If your spouse has health insurance due to his or her job, you may also be eligible for health insurance. Most companies offer group health insurance coverage to not only their employees but also the family members of the employees. You need to sign up right at the beginning when your spouse gets a new job.
Parents Health Plan
You are also eligible for coverage in case your parent has Obamacare, privately purchased comprehensive health insurance or job-based health insurance and you are less than 26 years old. This is true even if you are living on your own, are married or not dependent on your parent’s tax returns.
Subsidies are offered by the government under the Affordable Care Act to allow people with modest incomes to purchase health insurance. Individuals may qualify for the tax credit subsidy in case their income is in the range of 100% to 400% of the federal poverty level. Individuals are eligible for cost sharing reduction subsidy if their income lies in the range of 100% to 250% of the federal poverty level.