“Alternative Health Plans”: Introduction to the Options

As uncertainty continues to surround the future of the ACA, Marketplace insurance, and cost saving subsidies that have helped many Americans, it’s no surprise that people are worried and searching for alternatives to health insurance. 
  
I can not stress this enough: RESEARCH ANYTHING AND EVERYTHING BEFORE EVEN CONSIDERING ENROLLING OR MAKING A PURCHASE. 

Many people are poised to be in a very vulnerable position if they lose their health coverage and there’s no shortage of unscrupulous individuals who are happy to mislead consumers to benefit themselves. They’re more than ready to offer you a fantastic bargain (that later on will turn out to be a frustrating and potentially dangerous disappointment). Consumers’ best defense is to be prepared by knowing what to watch out for when looking for affordable care options. 

Proceed with caution 

A warning from the Texas Department of Insurance (TDI) highlights some of the immediate things to remember:

“Some consumers look at alternative health plans as a way to save money. Don’t assume they’ll provide traditional major medical coverage. Alternative plans may not be regulated by the state, and they don’t have to follow federal Affordable Care Act (ACA) rules. Unlike ACA plans, these plans:

• May not cover all injuries or illnesses, including pre existing and chronic conditions.
• May have waiting periods to join, pay less for each service, and limit their total yearly payments (annual caps).
• Don’t allow you to get federal help – such as tax credits and cost-sharing reductions – to lower your premiums and out-of-pocket costs.

Alternative health plans
Spot Health Insurance Scams | Consumer Advice

Rising popularity is not a sign of superiority

A simple web search for "health insurance alternatives" is enough to see how in demand this is and how many different options are easily available to consumers. What isn’t so easy to see is what to look out for when choosing one. All make promises of big savings and are quick to reassure potential customers of the extent of their coverage but they’re not always what they seem. 

Remember that health insurance premiums can seem like a waste of money if you don’t need to use your insurance much, but you don’t want to go uninsured and risk serious financial and medical problems.

In order to make informed choices, it is critical to research, investigate, and be aware of the potential drawbacks, limitations, and exclusions of any health plan, just as you do when choosing a traditional insurance plan.

Overview of the options

To begin, here are the most common “alternatives” to health insurance being marketed to consumers today with a brief summary of:

• what they are/what they do (definition)
• quick glance at pros/cons
• examples of who this option might appeal to
• additional notes/considerations to keep in mind

In the upcoming posts for each type, we’ll do a deep dive into those benefits, pros and cons, etc. but for now, let’s just get an overview of what’s available.

In conclusion

There are plenty of programs and plans being presented as “alternatives to health insurance” but none truly are. This doesn’t mean they won’t work for you. They could be a great option but the key, as always, is to make sure whatever option you choose is right for your specific needs and circumstances.

It’s always important to learn about any product you’re considering before making a purchase but even more important in this instance. Predatory individuals and companies see a big opportunity when people are vulnerable and with so many on the brink of losing coverage or facing costs that just aren’t sustainable, the scams and scammers are getting ready to take full advantage of consumers’ desperation.

If you want to explore these options, start shopping around as soon as possible so you will have plenty of time to investigate any product/service you’re considering, and so you won’t have to make quick decisions that may lead to regret later.

Keep watching my blog for a full article about each of the options listed above with an in depth look at exactly what they offer and how they provide it. The list of changes that are right around the corner for the ACA and Marketplace insurance is significant and it’s going to be important for all of us to move forward with eyes wide open to make informed choices for ourselves and our families.

Have a great day and thank you for your interest! As always, please contact me if you have questions, comments, or need help with anything. I’m happy to help in any way that I can.

Health Insurance Marketplace® is a registered service mark of the U.S. Department of Health & Human Services.