California Insurance Blog: Health, Life, Mortgage Quote

California Health Insurance

If you thought buying life insurance was tough, just wait until you shop around for health coverage. Unlike an employer-sponsored plan that has to accept everyone at the same price, private plans in most states are underwritten based on your age, weight, smoking status and health history. A preexisting condition as common as asthma could be enough for an insurer to raise your premiums.  And if you have a history of heart disease, cancer or diabetes, you could be out of luck entirely. A plan could either be too expensive or include a rider that excludes the very ailment for which you need coverage. If they look at your application and see something they don’t like, a $400 a month policy could go to $600 a month.

In California there are fewer restrictions on the insurers, so premiums tend to be more affordable for young people and pricier for older people. The problem is that insurers in California can refuse to provide coverage at all. In these cases, consumers can buy policies from a state high-risk pool for a rather high price. And it could exclude pre-existing conditions. For more information on the rules, refer to your state insurance commission’s Web site.

How To Buy Health Insurance

Use a health-insurance broker who knows your market. Brokers not only will help you shop for price, they’ll also know if a company has a reputation for raising premiums or hassling policyholders who file claims. If necessary, a broker can find a group for you to join or help you sign up for your state’s high-risk pool. Finding a good broker can be a task in itself. Many life- and auto-insurance agents don’t deal in health insurance because the rules are complicated and the commissions low. But they may be able to refer you to someone who does.  Just make sure you find someone who represents a lot of companies and understands the underwriting standards for each insurer. The last thing you want is to be rejected from a plan that doesn’t typically cover someone with your health profile. Not only is it a waste of time, but it could also raise a red flag when you apply to other insurers. An informed broker could steer you away from such insurers.

Advice When Purchasing a Health Plan

One way to keep premiums manageable is to increase your deductible (don’t go beyond what you can afford to pay out each year) and skip the vision and dental coverage. Don’t even try to match your former employer’s lush plan. An insurere may charge a young family of four living in California $700 a month in premiums with a $250 deductible. If the family accepts a deductible of $1,750, they can lower the premium to about $400 a month. Insurance should be purchased for unexpected and major issues, not everyday claims. You wouldn’t pay a higher price for your auto insurance just to include oil changes and tire rotations, right? Take care of the ordinary things on your own, especially if you have a Health Savings Account. Then get a health insurance plan that takes care of the unexpected so that you can get the care you need without breaking the bank. Many people pay more attention to the copay than to the “Maximum out of pocket” expense, but that is the real issue when getting coverage. You want to know that no matter what happens, you can pay the max and the rest is covered by the insurer. In fact, many companies are offering simplified plans in which the deductible IS the maximum out of pocket.