How to Get Health Insurance

Today, we’re going to be talking about How to Get Health Insurance. Well, let’s first cover the good news. Many employers already provide affordable health insurance, not to mention Susie can continue stay on her parents’ health insurance plan until she turns 26. This is true even if she’s married, moves out of her parents’ home, or is no longer claimed as a dependent on her parents’ tax returns.

However, for our purposes, let’s say Susie is unable to stay on her parent’s health insurance and her employer-sponsored plan isn’t great. What should she do?

Well, Susie still needs health insurance, especially because there’s a sizeable annual penalty for not having it. However, thanks to the Affordable Care Act, it’s now very easy for Susie to find great health insurance plans. Then, once Susie finds her desired plan, she can then easily complete the application online, where she may even automatically qualify for a federal subsidy that lowers the cost of her insurance, so long as her income meets a certain threshold.

However, there is a catch to all this good news. Unless Susie qualifies for Medicaid, the government's health insurance plan for low-income individuals, she can only apply for health insurance during open enrollment, which lasts from November 1st to January 31st. Outside of it, Susie can only apply for health insurance within 60 days of what’s called a qualifying life event, such as moving to a new state, getting married, having a baby, or involuntarily losing your existing health insurance coverage.

Finally, now that Susie understands how to get health insurance, as long as she follows these six rules she should be set for the future:

Rule 1: Make sure the insurance plan you’re considering has coverage in your area. 

Rule 2: Be sure to read the fine print of any health insurance plan you’re considering,

Rule 3: If you’ve picked a high deductible insurance plan, we recommend opening a Health Savings Account, in which you can deposit money tax-free to pay for qualified medical expenses.

Rule 4: Once you’ve finished your insurance shopping, you’ll need to find a great primary care physician in your insurance network and book an annual physical, both of which you can do easily using our recommended website. Once booked, be sure to arrive to your appointment early and always bring your photo ID and insurance card.

Rule 5: Once you’ve received your medical bill from your provider, be sure to compare it with your Explanation of Benefits, which is a document, not a bill, that explains how much your insurer paid your provider. Should you find a mistake on either one, like a duplicate charge or wrong insurance information, be sure to call your insurer and provider immediately. And don’t worry, if for whatever reason you still can’t pay your medical bill, you’re not out of options. You can either contact your insurer and provider and ask for assistance, or use the website GiveForward to crowdfund your medical expenses from your friends, family, and even strangers.

Rule 6: Before renewing your health insurance plan each year, be sure to check out other plans during open enrollment. There may have been significant improvements in cost or coverage since you last applied, especially if you got your plan before January 1st, 2014.

Rule 7: (the final rule): If you lose your job, don’t automatically take COBRA, which is a high-priced way to extend your employer-sponsored health insurance for up to 18 months. Instead, shop around for other health insurance plans before making any decisions. I hope you enjoyed this session on everything you need to know about How to Get Health Insurance. So always be sure to contact a professional before making any financial decisions.