How to Buy Individual Health Insurance Coverage at Group Rates

Buying health insurance as part of a group plan when you’re fully employed is normally at a lower rate than independent coverage. If you’re between jobs, and can not continue with your former plan, a new group health plan may not be an option. If you decide to work as an independent consultant between full-time jobs, you’ll notice a sharp rate increase if/when you buy individual health insurance coverage.

An individual plan is one purchased on the private market, not tied to workplace benefits. Although they are called “individual” plans, they can cover you, your spouse and your children. Other ways to buy health insurance when you’re between group health plans include “short-term” health insurance and “catastrophic” health insurance.

Insurance carriers may reject your application for individual coverage, if you have existing health problems, because they are medically underwritten. But keep in mind, some states require that insurance carriers offer you a policy, no matter what your prior conditions are. So do your homework before you let a carrier reject your desired policy application. Check the list of “Guaranteed Issue Laws”, published by the Kaiser Family Foundation.

Even though people enrolled in individual health insurance plans pay more as they grow older and more prone to illness, don’t let that tempt you into to going without coverage. Even if you’re healthy you could have a serious or near-fatal accident and be forced in “medical bankruptcy” as so many millions of others are each year.

It’s important for you to keep in mind that you’ll lose your rights to coverage of pre-existing conditions if you go without insurance for 63 days or more, a time period set by the Health Insurance Portability and Accountability Act (HIPAA).

You may feel locked out of the health insurance market if, for example, you’ve been uninsured for too long, or have a “pre-existing condition”. It may seem impossible, there are practical ways you may be able to get coverage.

Double check the facts in your state because, in some states, self-employed sole proprietors are eligible to buy independent health insurance at the premium rate of a “group of one”. Even if you are a home-based businessperson you may do so, if you can show that you’ve been in business for 30 days or more.

If the state in which you live does not offer these “group of one” insurance policies, you may still qualify for a group rate if you own a business and have at least one partner or employee. Is your spouse helping you with your home-based business? Then you qualify as a two-person business, and are eligible for a group rate and a group policy.

Let’s say you’re planning on leaving an employer where you have a group health plan. Simply ask the insurer to convert it to an individual health plan. The rate will, of course, be higher than your group plan, but at least you’ve secured your health insurance if you have medical conditions. Another option to check on: if your spouse has a group plan at work, you might be able to be added on to it.

Learn more about Guaranteed Issue Health Insurance. Stop by Brockton Barton’s site where you can find out all aboutindividual and group health coverageto suit your family’s needs.