Understanding the Basics of Health Insurance Plans3 min read
There are many types of health insurance plans for family members. However, some families need more than others. For those families that need additional medical coverage, they may want to consider the different health insurance plans available. Health insurance premiums vary based on a number of factors, including the age and health of the family member, his/her gender, his/her health history, his/her health situation, and his/her health conditions. Here are some examples of family health insurance plans.
Managed care: Under managed care health insurance plans, a health insurance company will administer all or some of the health care. Premiums are typically the amount of money that you pay every month to be in your family managed care plan. In recent years, the typical monthly premium for family managed care coverage has been $11 per month. During an open enrollment period, you can shop around for the best rate with various health insurance companies. After an open enrollment period, you will have a chance to choose which health insurance company to keep as your provider.
Standard Plan: In this type of health insurance plans, you are not assigned a health professional to manage your care. Instead, you will get medications and doctor visits delivered to you through a health insurance company. For individuals who get their health insurance plans from an employer, this type of plan is often offered. If you get Medicaid, Medicare, or other insurance coverage, you may be able to see plans available through those companies that cover standard premium costs.
Option One: You may want to compare the different affordable health insurance plans based on the premium amount. If you qualify for some of the assistance provided under Medicare, you may be able to qualify for an even lower premium. There are similar situations where a lower deductible health plan would be more affordable. If you are self employed, you may also qualify for options based on your occupation or if you provide household and medical care for a family.
Option Two: If you are in a lower income family, you may also qualify for income tax credits. The income tax credit varies by tax bracket. For most tax brackets, the credit is a percentage of your income. For high-income families, the credit may be limited to a flat fee that is fixed for a specified number of years. This amount must be paid at the time of purchase.
High Deductible Family Plan: If you are in a higher tax bracket but qualify for health insurance coverage through a high deductible plan, you may still want to consider this option. Generally, in this case you pay a higher premium than if you choose a standard family plan, but the cost of coverage is more affordable. You could also compare the premium for this option with the premium for other coverage options you choose. If you don’t have health insurance, you would pay a higher premium to get it through your employer.
Premium Tax Credits: The second option is to take advantage of cost-sharing reductions. These are reductions in the cost-per-point that are granted on health insurance premiums. This helps the lowest-income families afford the premium cost. If you or your spouse does not have health insurance coverage, you could qualify for cost-sharing reductions.
Employers can help with the cost of health care coverage by providing group insurance that allows its employees to enroll in a health plan through their company. Often, an employer can cover the cost of premiums for its group of employees who are eligible for group insurance coverage. In this situation, there are often no deductibles or low premiums. However, some companies may require you to choose a high deductible or choose a limited choice of doctors and hospitals in order to maintain your health coverage. It’s a good idea to check with your employer to see if they can offer any type of assistance with your health care coverage.