Millions of American citizens are uninsured, and this can have a direct impact on their lives. But you don’t have to use a classic super expensive plan to cover yourself. We’re presented with more choices than ever when it comes to products and services out in the marketplace as a whole, and fortunately the health insurance field has options too!
Whether it’s health savings accounts, medical tourism, catastrophic policies or something of the like, there are alternatives out there, and you don’t have to take the hit up front. Bankruptcy is never a pretty thing, but a huge medical bill can throw a real wrench in your life without insurance and bring about financial ruin. Look into this entry from healthnews.com to learn more!
Top 5 Alternatives to Traditional Health Insurance
In today’s economy, it’s the fortunate minority that has both a job and medical benefits. In fact, the number of uninsured Americans has continued to rise, and at last count numbered 50 million. And those with the least resources, the unemployed, are experiencing a high rate of medical debt.
There are no easy answers. In time, the economy will turn around, the Affordable Care Act will help some get benefits, but others may be left out in the cold. Without the resources to pay for COBRA insurance when they lose a job, or to purchase a private insurance policy, many Americans need alternatives for both everyday health issues and more complicated surgical-related problems. Options are limited, but here are a few possibilities that may provide a middle ground.
(1) High Deductible, Catastrophic Policies
With the high cost of traditional full-service policies, many prefer to opt out of insurance altogether, but there are certain policies that will help defray costs should you have a larger, or catastrophic, medical condition. And it is these policies that just may allow you to keep your home and never have to visit a bankruptcy attorney when you cannot pay your medical bills.
High deductible, catastrophic policies cover unexpected situations, such as breaking a leg while skiing, a heart attack followed by quadruple bypass surgery, a stroke, or a cancer diagnosis and treatment. They generally do not cover routine office visits, prescriptions, or your monthly diabetes equipment.
You pay a monthly fee for the insurance, and should an injury or illness befall you, once you have paid an agreed-upon deductible, the policy kicks in to pay the medical bills. For healthy individuals who rarely see a doctor, these policies allow peace of mind. Policies are available from most major insurance companies, including Aetna, Blue Cross Blue Shield, and United Healthcare.
(2) Medical Tourism
Medical tourism is a new trend in health care, not to mention one of the fastest growing healthcare industries, where patients choose to travel outside the United States for medical procedures.
The primary factor in medical tourism is cost, plain and simple. For the underinsured and uninsured, medical tourism provides choices in quality medical care at more affordable prices than they can get in the United States. Even with travel expenses included, patients still come out well ahead in out-of-pocket expenses, as procedures are 30 to 90 percent cheaper abroad (varies by country and procedure).
The type of procedures offered abroad is lengthy, and the list of countries where medical tourism is an option is mind-boggling. You can get the same standard of care, often under U.S. trained physicians, and in hospitals that have been accredited by the Joint Commission, the same agency that accredits hospitals in the United States.
Obtaining health care in foreign countries is, according to the book Patients Beyond Borders by Josef Woodman, less costly for a number of reasons: standards of living are more modest, doctors and staff command lower wages, government-subsidized health care keeps private health care costs down, and malpractice attorneys are, if not docile, at least considerably more restrained. A fortuitous confluence of actions that allow medical tourism to flourish across the world.
While you can arrange all aspects of a trip abroad for medical services, many opt to use a medical tourism facilitator. Medical tourism facilitators are a new breed; assisting patients, employers, and insurers in finding trusted overseas facilities. The advantage of using a facilitator is their expertise and knowledge, and referrals to accredited and certified foreign providers. While there are a large number of facilitators, finding a reputable one can be difficult. Try Healthbase: Healthcare Beyond Boundaries, an award-winning facilitator which operates in the U.S.; Med Retreat, also based in the U.S. which serves all of North America in making arrangements for medical services in 10 countries abroad; Planet Hospital, which has almost 10 years experience is a pioneer in medical tourism; or,WorldMed Assist.
(3) Medical Discount Savings Cards
With a medical discount savings card, membership entitles you and your family to access negotiated network rates, similar to those that many major insurers currently pay for services. This can mean a savings of up to 85 percent on doctor, lab, pharmacy and hospital services. These programs can be used as a stand-alone plan, or in conjunction with a high deductible health insurance plan.
There are several of these cards available and most are the same. The difference comes down to service. One of our favorites (and, in the interest of full disclosure, one of our sponsors) is the Fitz Card, developed byPrecis Health Care. Precis charges a one-time application fee of $10, then a set monthly fee. There are two levels of service: $19.99 and $39.99, both of which include coverage for doctor, hospital, dental, vision, prescription services, hearing aids, vitamins and diabetic supplies, and a nurse hotline.
There are no restrictions for pre-existing conditions with medical discount savings cards, unlike most traditional health insurers, and you are free to use the program services as often as you like.
Similar to major insurance providers, programs like the Fitz Card restrict use to the thousands of providers within their network. You must pay for the services yourself—there is no co-pay—but, in return, there are no insurance forms to fill out.
(4) Medical Sharing Program
This is a pooled resource program where members pay a monthly fee and share in each others’ healthcare costs. Some are small and locally based, others, such as [fill in] are larger covering 30,000-40,000 members.
Monthly fees are low, typically less than $250 for a family of 4, and there are no large deductibles. Many sharing plans require an “incident fee” as each health issue arises, which is similar to a co-pay. Anything above and beyond can be submitted for reimbursement from the program.
Some medical sharing programs encourage and reward healthy lifestyles, which can mean additional discounts, and will offer health coaches to those who are suffering from ongoing or chronic healthcare issues.
Often these programs have pre-negotiated discounts with physicians and hospitals, reducing rates to those similar to what a typical insurance company would pay. There are exclusions, primarily for elective surgery and faith-based medical sharing programs may also exclude birth control and abortion.
NOTE: Some medical share programs are claiming an exemption from the federal government’s mandate that all Americans be insured by 2014. Members of those programs will not be required to carry insurance when the health reform’s individual mandate kicks in.
(5)Health Savings Accounts (HSAs)
Technically, HSAs are not a stand-alone product; they are used in conjunction with a High-Deductible Policy (see above). Created in 2003, their purpose is to help individuals with high-deduction policies save for medical expenses and eliminate the tax burden on those funds. Money invested in an HSA can be pre-tax and money withdrawn from an HSA to pay for qualified medical expenses is also tax-free. Additionally, employers can contribute to an employee’s HSA as part of their benefits package.
HSAs can be used for almost any legitimate medical expense or procedure, including doctor’s visits, surgery, long-term care, prescription and OTC drugs, vision, walking and hearing aids, and even alternative medicine (acupuncture, homeopathy, chiropractic) in some cases.
Consumers decide how much to invest per year in an account, which can rollover to future years without loss of benefits. They can also control how the money in the account is invested, much like an IRA (stocks, bonds, mutual funds).
HSAs can be set up with a number of qualified administrators, often a bank or insurance-related company, such as Chase, State Farm, Farmers, and HealthEquity, or with a specific HSA administrator such as Health Savings Administrators, HSA Trustee Services or HSA Resources.
Don’t forget to visit www.airambulancenetwork.com and sign up for Air Ambulance‘s free checklist!