No matter what you buy, there will always be a correlation between price and benefit. Whether it’s a pair of shoes, a car or even a new dishwasher – anything that sounds too good to be true, usually is. Cheap health insurance is no different. When it comes to insurance, there are no bargains.
Cheap insurance is priced that way because it’s designed to give you very little back in return. One of the things to watch out for when you are researching some low cost health insurance policies is their rating. A low rating of C- or lower means there are questions as to whether the company could stay in business if it needed to pay out too many claims all at once. Many insurance companies over the years have gone out of business due the number of claims.
Another reason the premiums might be really low is that the doctors associated with the plan are being paid below industry rates. Or their deductibles are so high that they are useless.
Companies that sell this type of cheap insurance want to keep their risk levels at a minimum. In effect, if they have to pay out too much money, they could be in trouble. They are in the business to make money, period. These companies have little concern for patient health or healthcare and they rarely are eager to pay claims at all, never mind on time.
Also check out the doctors who are associated with these cheap insurance companies. There’s a reason they are willing to work for below industry reimbursement rates, and it’s up to you to research them and find out why that’s so. At least make sure you can use a doctor with credentials from a US medical school.
Deductibles for this type of cheap insurance are typically higher than normal and totally unreasonable. If you or your family make frequent doctor appointments, this is not the best insurance for you, no matter what the price is.
Learn more about Health Insurance. Stop by Samantha Malone’s site where you can find out all about and what it can do for you.
Tags: health insurance, health insurance information, low cost health insurance, student health insurance