Health Insurance Articles

Choosing A Basic Health Plan Independently From An Employer

2012-01-29

Many Americans have some form of health insurance through their employer that not only covers them but also provides coverage for their family in case of an emergency. These plans are meant to be as broad as possible but not particularly deep in order to keep costs low and allow both an employer and employee to pay as little as possible. While these plans are a great way to ensure that a family has basic care and that major medical events don't ruin a bank account, new health reform laws soon to be in place in the United States may also make choosing a basic health plan apart from an employer something to consider.

The Obama administration is seeking to put its Affordable Care Act into full effect within the next few years, and this Act will have a number of important impacts on private health care, including any basic health plan provided by an employer. First, the Act will establish a form of government-run health care accessible to all Americans and meant to provide for their basic health needs. Although the public plan will not offer access to the same kinds of services and specialists as a private health plan, there is nonetheless some competition between public and private enterprise expected as Americans are not only required to have a health care plan by law but suddenly have another option to choose. In addition, the Act also mandates that private companies will be subject to quality reviews by the government, and if they do not meet minimum standards under the new health reform laws, they may be financially penalized or shut down until they bring their practices up to code.

For employer-sponsored health plans, these new laws mean more red tape and more competition from public sources, and may mean increases in the cost of even basic care. There is also concern that the cost of healthcare will rise across the board, and even those who have a robust employer plan may wish to choose a plan independent of their employer. In order to do so, an employee or family should first identify their needs and determine where their employer plan does not match expectations. From there, it is a matter of finding a company - either online or in person - that can offer a plan tailored to a family's needs. In some cases, companies may be able to offer a better set of options than an employer plan, in which case it can simply replace the plan an employee carries.

While employer plans offer a number of benefits, new health laws and the rising cost of healthcare make independent plans a viable option.