Many people struggle to find a health insurance plan that completely covers their needs. If you are one of the millions of Americans looking for a solution, you need to be careful. Here is an in-depth look at the danger of junk insurance plans.
What If You Have a Medical History?
While shopping for insurance coverage, have you ever been asked whether you have been previously diagnosed with a major illness? That is a warning sign. First off, yes, it is true that under the terms of the Affordable Care Act, you are not ineligible for coverage if you have a pre-existing medical condition. Insurers cannot turn you down or have you pay higher premiums based on your medical history. However, many people opt for shorter policies outside of ACA plans, a move that often backfires.
The Dangers of Buying a Short-Term Plan
If you were to be diagnosed with cancer, none of the treatment you need might be covered by your insurance. The hidden trick with purchasing short-term plans is that they only provide limited benefits and no coverage for pre-existing conditions. These types of policies may appeal to you because they are relatively inexpensive compared to comprehensive plans. If you don't have health insurance through your employer, you are likely looking for relief.
Learn to Differentiate a Junk Plan from an ACA Plan
As you search the insurance marketplaces, you'll have to know the difference between comprehensive ACA plans offered on the federal and state level and other plans offered through insurance websites. Analysts often refer to the latter as junk plans because they provide limited benefits and pose a lot of restrictions. As these junk plans continue to grow in popularity, you need to be careful.
Even if you are healthy now, things can change in an instant. If you seek medical treatment before signing up for a plan, many of these junk policies will deny coverage if you are diagnosed with a pre-existing condition. Even if you become ill only after you purchase the plan, insurers can still deny coverage. Insurance analysts have constantly talked about the dangers of short-term plans and other coverage options that are different from those in the Affordable Care Act.
While it is true that variations of ACA plans are sold outside of the marketplace, you may run into trouble because you may think that you're buying comprehensive coverage when the policy is actually very limited. Many states prohibit the sale of short-term plans on the market. Short-term plans often appeal to healthy people who don't believe they need medical care.
Other Options Available
Some people opt for fixed indemnity plans that provide a specific amount for benefits. The number often falls very short of the total cost of care. If you experience a medical emergency, you may receive lump sum cash benefits. Some plans only provide hospitalization coverage. You can also opt for a bundled plan that includes a discount on prescription drugs. The unfortunate truth behind many of these policies is that sales representatives often engage in deceptive marketing practices. They may lie in order to receive a greater financial reward. One study notes that sales representatives receive higher commissions on non-traditional plans instead of ACA plans. The data shows why finding the right broker is so important. Make sure to purchase a plan from marketplaces endorsed by health laws.
Junk insurance plans may sound more efficient, but the truth is that you may suffer in the long run. These plans are not designed to support when if you have a medical emergency or receive a shock diagnosis. Our experts here at East End Insurance Agency
will work with you to find the right health insurance coverage that protects you when you need it most.