Is Cheap Health Insurance Worth It?

Is cheap health insurance really worth the hassle? Not everyone can afford a high quality health insurance plan and some people simply do not have access to a good health plan. If either of these situations describes your life, you may be wondering if you should look into a cheap health insurance plan or simply do without.

The Basics of Health Insurance Cooked Down and Simplified

The sad truth about health insurance in America is if you are breathing, (and don’t qualify for Medicaid) you need some form of health insurance. The skyrocketing cost of medical care means that paying out of pocket for even the smallest of medical problems is simply not an option for the Average Joe. If you have kids, chronic health conditions, or engage in high risk behaviors (like running outdoors in the early morning or at night, go skiing, play contact sports, and possibly even drive a car) you need at least basic health insurance coverage.

Catastrophic Health Insurance

Catastrophic health insurance plans protect you from, well, catastrophes. This type of insurance covers car accidents, a burst appendix, broken bones, stitches- anything catastrophic. It won’t cover yearly physicals, colds and the flu, chronic medical conditions (like diabetes, arthritis, or heart disease). This type of insurance is bare-bones basic and everyone should carry at least a catastrophic insurance plan to protect against financial ruin should the unexpected happen.

Cheap Health Insurance Plans

If you’re looking for an insurance plan you can use for average medical problems like the flu, a PAP smear, a bladder infection, or back pain, you’ll need an upgrade from the catastrophic insurance plan. However, insurance plans with all the bells and whistles can be very, very expensive. Sometimes, a cheap health insurance plan is a viable option.

When searching for a cheap health insurance plan, just remember, when it comes to insurance, you get what you pay for. Sit down and determine what options you really want, like prescription drug coverage, low co-pays, or the ability to choose your own doctor, and then discuss your insurance needs (and your budget) with an insurance agent or broker. By excluding options you don’t need, you can often include the options you want for a lower price. An insurance agent or broker can help you select a health plan that fits your needs and your budget without bogging you down with a bunch of insurance-related jargon.

Cheap health insurance plans are available and are often worthwhile as long you don’t expect too much from a lower-cost plan. You can’t buy a black and white label of macaronis and cheese and expect it to taste like Kraft Cheese and Macaroni, and your health insurance works in much the same way.

You can save money on monthly premiums with a less expensive health plan, but only if you don’t plan to use your health insurance benefits very often. If you need treatment for a chronic condition (other than pain) or if you want protection in case you develop a chronic condition that requires frequent treatment (like cancer or diabetes), you’ll need a more robust plan with a heftier monthly premium in order to save money overall.

Nicole Spencer works as a ghostwriter with the Ghostwriter Dad team and also helps parents with potty training as a staff writer at Potty Training Power. You can follow Nicole on Twitter.