Tips for Buying Health Insurance as an Individual

By Alden Smith

Individuals seeking health coverage plans are often in a dilemma because they have few options, and are at the mercy of the high cost of health care in the United States. According to a recent article in the Houston Chronicle, the average person in the United States will pay $7,100 for health care this year.

The article further states that the cost of medicine in the United States today eats up one-sixth of the Gross Domestic Product. As a nation, we spend twice as much per capita on health care than the other 21 wealthy nations of the world. Data collected from the World Health Organization reveals Americans live 2 1/2 years less than the average of other countries (69.3 versus 71.8 years). Being without health care is not an option.

Being without health care benefits is one of the most disastrous positions an individual can find himself in. With the high cost of surgical procedures, and through-the-roof expenses for a hospital stay, trying to squeak by without insurance is one of the worst things you can do. Pubmed, The National Library of Medicine, reports that the median daily cost for a hospital room is $836. It only takes one auto accident to drive you into bankruptcy.

One of the best options an individual has for manageable health insurance is a high deductible health insurance policy coupled with a health savings account. The cost of a high deductible health insurance plan is significantly cheaper than low deductible plans, and offsetting such costs as routine doctor visits, lab work, and annual checkups with out of pocket spending from a health savings account can add up to significant savings in the long run. Add to this the benefit of a health savings plan being non-taxable, and the plan of high deductible insurance plans and health savings accounts makes good sense.

An individual may also wish to look into the fact that many of the mainstream health insurance plans offer discount cards for such things that are not covered in their basic plan, like dental, prescription drugs and vision coverage. Taking advantage of this will add further savings to your cost of health care.

Another good alternative for the individual is the self directed health care plan. This health plan does away with the managed care aspect of an insurance policy, and therefore administrative dollars can be spent on keeping the plan owner well. In this plan, the individual and the primary care provider make the decisions as to where health care dollars are spent.

Because the individual does not have the bargaining power of a group, it is imperative to know exactly what you are getting, and to be sure you know exactly what you need. No two health care plans are alike, and it is your responsibility to find the plan that suits you, and to go over each detail of the plan to know where the bargains lie. Remember, the best price is not always the best deal. You may buy a plan that is cheaper, but end up paying more out of pocket in case of an emergency, or find that the plan may put limitations and "caps" on your coverage. It must also be remembered that although most plans cover doctor visits, there may be no benefits for mental health, prescription drugs and dental care, which are generally optional.

If an individual is buying a health care policy, it usually means that her or she is self employed. It is always good to know that if this is your case, that your premiums for health care are 100 percent deductible on your income taxes. This is a good tax planning option.

An interesting note discovered while researching this article is that some companies in the United States are looking to out-source health care to foreign countries. United Group Programs, of Boca Raton, Fla., sells self-insurance policies to small businesses. This forward thinking company is offering a plan that sends patients to Bumrungrad International hospital in Bangkok, Thailand. UGP says the plan will save employers more than 50 percent on major medical costs and slash employees' out-of-pocket expenses to zero. The National Coalition on Health Care reports also that with an estimated 45 million uninsured Americans, some 500,000 people traveled overseas for medical treatments and surgery.

By being creative, the individual can find and utilize programs that trim the fat off the high cost of health care in the United States.

Alden Smith is an award winning author and regular contributor to DoItYourself.com. He writes on a variety of subjects, and excels in research.

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