The notion of affordable health care is one of our country’s most debated topics. Politicians argue about whether they have the answers to provide a better system that enables all Americans to afford healthcare coverage for themselves and their families. Obviously, one of the keys to providing affordable healthcare is through insurance.

As such, all Americans can share in the risk and thus be able to face catastrophic accidents and illnesses for which one average person alone could not truly afford. Again, all Americans, healthy and unhealthy. This is the premise of health insurance. Health insurance was meant to provide health coverage for unforeseen catastrophic accidents and illnesses that would otherwise bankrupt most of us.

Now on to the topic of affordability. This is a different concept and it has a lot to do with the value we, individually, place on our well being and overall health. By this I mean that perceived affordability, the cost of healthcare, whether through insurance or self insurance, is probably very different between two individuals with exact income levels. Two individuals, who, although they make the same income, place a different economic value on their health and well being and possibly that of their families.

One individual could place a higher perceived value on their entertainment expenses rather than on purchasing health insurance or, if self-insured, paying the necessary expenses to help them remain in good health. According to our current laws this is legal in most of our states, that is, to make the decision to not purchase health insurance or not to pay for healthcare services that would help an individual remain and/or get healthy.

This scenario would seem fair and appropriate until the individual who purchased health insurance before spending on other items now has to participate along with all other Americans, in contributing financially to pay for healthcare costs incurred by uninsured individuals who have accidents and/or illnesses. These same insured Americans have to contribute for all other Americans who decided not take care of themselves and their well being.

Now, I am not saying that we as Americans do not have an affordability problem in our healthcare system or that we could not efficiently improve our healthcare delivery system, but that in addition to affordability, there are decisions that we must face to ensure that a fair system is in place for all Americans.There must be changes to our laws that create requirements for all Americans to purchase health insurance, if they can afford it!

As our federal government debates over the system that should be put into place to provide access to affordable healthcare, we have to keep in mind the responsibility we all share to prepare ourselves for illness and accidents by purchasing health insurance. As the number of uninsured and underinsured in our country decreases, the costs to the insured will decrease proportionately.  

The numbers are daunting. Only 60% of businesses are now offering health insurance benefits to their workers – that’s down from 69% in 2000 and decreasing annually. With small businesses, the numbers are under 50%. Plus, premiums for medical insurance continue to increase in double digit percentages every year. The big question then becomes how can you find affordable individual health insurance?

The task may seem impossible, but if you follow a few simple steps, you should be able to find a health insurance possible that you can afford.

1. Know the rules in your state – Each state has different guidelines about health insurance policies. For example, the way pre-existing conditions are defined varies from state to state. Before you begin looking at policies, you should become familiar with these rules so you’ll be able to make educated decisions about your coverage.
2. Know what type of coverage you need – Once you start looking, you’ll find a wide array of choices. For example, if you are between jobs, you may only need short term health insurance. Or if you are thinking about starting a family or already have one, then you may need to find a plan that includes maternity coverage and/or that covers more than just an individual.
3. Know what you can afford – Sit down and create a health insurance budget. When you buy individual health insurance, you won’t only be paying the premiums, but also co-payments, deductibles, and sometimes even co-insurance so all of these elements need to be considered when deciding what to spend on a policy.
4. Compare all of your options – To find an affordable individual health insurance plan, you need to know what’s available. Just looking at one particular company’s offerings won’t tell you much. Instead, you need to look at a wide variety of plans so you can compare what is being offered and what it costs.

Action Steps

To find affordable individual health insurance, here are some resources that can be useful.

Check your state’s insurance rules

Remember you need to know your rights before signing up for any insurance policy, particularly if you looking for a good deal. Pay attention particularly to rules about pre-existing conditions (so you’ll know what will and won’t be covered in a plan) and about what has to be covered (often coverage of immunizations and other routine procedures is mandatory).

Find an insurance broker

Comparing health insurance plans can be tricky. That’s why it’s a good idea to work with an insurance broker who is familiar with the rules and policies available in your state. Because they do not work with any single company, they can give you information about many of the policies available and can even help you make comparisons.

Do your homework

To make the right choice, you need to understand some basic industry jargon. For example, do you know the difference between a PPO, HMO, and a HSA? They are all options to consider when thinking about your health insurance options. Take a little time to do some research about the options that are out there, so you’ll have the knowledge necessary to make a wise choice.

Tips & Tricks

Once you find an affordable individual health insurance policy you should be very careful when completing all of your paperwork. Do not be tempted to lie or misrepresent anything about yourself or your health. Insurance companies do thorough checks on all of the information and will refuse to pay your claims even over the smallest discrepancies.