According to the U.S Census Bureau, a whopping 27.5 million (about 8.5 percent) of Americans don’t have health insurance. With 1/4th of the U.S population left uninsured, the risk of incurring debilitating medical debt skyrockets. Despite health insurance coverage’s ability to safeguard one’s family against a flood of stacking medical bills, an alarming percentage of Americans opt out of health insurance coverage. Many factors contribute to this problem. High insurance coverage costs are the primary cause.
There are two different types of insurance plans across the United States, which are classified into two groups: the Affordable Care Act (ACA) qualified plans or non-ACA compliant health insurance. While ACA-qualified plans (also known as Obamacare plans) are the most popular, they’re relatively expensive compared to the non-ACA health plans.
Non-qualified health plans can be an excellent cost-friendly alternative for individuals without pre-existing conditions who’re maneuvering the system in search of affordable health insurance options. But what is non-ACA health insurance? To learn all you need to know about non-compliant health insurance plans, read on.
Non-ACA health insurance
Obamacare health plans were specifically designed for individuals with pre-existing conditions. These plans primarily cover the required ten primary benefits, such as maternity, preventive care, substance abuse, and mental health benefits.
On the contrary, non-Obamacare compliant plans don’t follow the ACA insurance provisions but still provide a reliable and substantial amount of health coverage. In recent years, non-ACA health insurance plans have gained popularity due to their inexpensive nature.
When it comes to health insurance coverage, you’ll need to account for your healthcare needs and budget restrictions. As a preventative measure, a future beneficiary should shop around and compare different health plans quotes to increase your odds of finding the best coverage catered towards your health and budget requirements. Remember, going uninsured can be risky, so ensure you find health coverage that accommodates your financial situation.
Forms of non-ACA health plans
There are several types of non-ACA health plans to choose from in the health insurance marketplace. Here are some of the most common.
Short-term health insurance
Short-term health insurance is a health policy with a limited coverage duration, ranging from one month to one year. This health insurance option is ideal for individuals searching for short-term medical coverage in the interim while researching appropriate long-term health coverage options.
For those in financially compromising situations, short-term health insurance plans have become an affordable alternative for Obamacare plans. These health insurance plans are especially beneficial in the face of medical emergencies such as surgeries, intensive care admissions, and even hospitalizations.
If you need a less expensive alternative to an ACA plan as you wait for Open Enrollment, short-term coverage will be ideal. If you’re in between employment and in need of medical coverage, for the time being, short-term plans will bridge these gaps in health insurance coverage. If you’ve been deemed ineligible for your guardian’s insurance and need medical protection until you find appropriate long-term coverage, a short-term plan will suffice.
Choosing short-term health plans can be beneficial in many ways. For one, a short term health insurance plan offers lower premiums to its beneficiary. It can be as much as fifty percent lower than the ACA health plan premiums. It’s also flexible as it allows users to visit doctors or facilities of their choice. Another significant advantage is that it provides more extended coverage, which usually runs up to 365 days.
Indemnity Health Insurance
The indemnity health plan is another form of non-Obamacare program that lets you pay a fixed amount of money for emergencies and unexpected medical costs. Unlike the short-term plans, indemnity coverage doesn’t expire. It also allows you to choose your preferred healthcare provider or physician. For that reason, indemnity health coverage can be ideal if you live in an area where particular medical services or doctors aren’t available under a preferred provider organization. If you’re looking for a plan that frees you from high monthly premiums, and you don’t mind higher out-of-pocket costs, indemnity coverage is an excellent option.
One of the most significant benefits of indemnity health insurance is that it doesn’t force you to settle on a primary care physician. Indemnity health insurance plans differ from other options on the market, as these plans let you self-refer to doctors and don’t require referrals to obtain compensation. Above all, indemnity health plans offer you invaluable freedom to direct and control your health care.
Other non-Obamacare insurance plans include the supplemental accident insurance designed to help you cover out-of-pocket costs that can accumulate after accidental injuries. This policy is a great way to tackle medical expenses that standard health insurance plans won’t cover. A Workers’ Compensation plan is another form of non-compliant health insurance designed for employers forced to claim liability. In the event of an injury, Workers’ Compensation plans will provide medical benefits and wage replacements to those impacted by workplace accidents. At their core, these plans release the employer from liability and deter an employee from suing the employer for negligence. This type of coverage comes in different coverage levels.
Medical discount plans, also known as discount health programs, are intended to help users save on services or products that standard insurances may not cover. These medical discount plans aren’t considered a form of medical insurance but can help cover what is not included in qualified and non-qualified insurance plans.
Once you’ve weighed the pros and cons of each non-ACA health insurance plan, you should budget for health insurance coverage that conforms to your monthly income. Don’t risk accumulating medical debt that can compromise your financial stability. Research the plans listed above to ward off out-of-pocket medical expenses.