Posted: 12/07/09
Alternative Health Plans May Be the Answer for Certain Types of Uninsured Workers
For many people, health plans are a main attraction of employment. However, for part-time and hourly employees health insurance often isn't part of the employment package. The reason is simple—employers don't feel they invest enough time in the company to warrant the cost. Also, undocumented workers, who are often paid in cash and off the books, aren't eligible for health insurance and so are forced to pay for private medical care in cash.
Likewise, those going through an employment transition, like changing or just beginning on a career path after college, may be facing the loss of insurance. COBRA is an option for laid-off workers for up to 18 months, but for young adults forced off their parent's health plan, it's not an option. Besides, while COBRA allows you to keep your former coverage and pays for previously diagnosed medical conditions, it can average ,400 for individuals and ,000 for families per year! Recent government subsidies have brought that cost down for the first nine months, but even with the financial assistance, that cost is prohibitive for many unemployed individuals and families.
Consequences of Going without Health Insurance
Of course, the cost of health insurance is nothing compared to what can happen without any type of coverage. Of the estimated 1.5 million American who declare bankruptcy each year, 60 percent of them occur due to medical bills.
A recently study showed that many of these are middle-class, well-educated homeowners who lost income due to illness, had to mortgage their home to pay for medical bills, or had medical bills that totaled more than 10% of their pretax income. While that outlook is bleak, it becomes even more so when you consider that three-quarters of those people had health insurance.
Health Insurance Alternatives for the Uninsured and Unemployed
Regardless of the reason, these uninsured Americans have a few other health insurance options, but many of them are prohibitively costly. If you find yourself in this situation:
• Shop for health plans with minimal coverage, high deductibles and annuals fees. Keep in mind that all these plans are still quite costly, especially for the unemployed. However, in the event of a major illness or injury some coverage is better than none.
• Purchase a health discount plan for immediate point of sale discounts up to 50% on medical, dental, vision, hearing and chiropractic care as well as prescriptions. These plans can save you money immediately on practically any type of service. The health discount plans at Reassurance Health cost as little as .95 per month and require no forms.
• Consider a scheduled indemnity benefit plan like the Reassurance Health Plus and Ultimate plans. Ideal for the uninsured and unemployed, these health plans pay a fixed scheduled benefit when a specific incident occurs such as a doctor visit or hospital stay. These plans are an especially great short-term option for the recently unemployed to help with coverage gaps and unexpected costs.
Think outside the traditional health insurance "box." Learn more about health discount plans and scheduled indemnity plans today.
