Health Insurance Articles
What To Know Before Buying Health Insurance In 2010
2010-06-23
Purchasing health insurance coverage is one of the most confusing processes an individual or family can endure. Coverage varies so widely, prices fluctuate so much, and treatment for preexisting conditions is so uncertain, that it almost takes a lawyer or accountant help in buying insurance. Now, with the new healthcare reform bill, another layer of confusion is sure to be draped over the already too-tedious process.
If you're planning to buy health insurance coverage in 2010, be ready for changes in the near future. That means you need to investigate what waits when your policy morphs into a new policy as the new bill kicks in. In most cases, this will not result in a drastic change. Your insurance will probably be enhanced modestly, especially if you have a basic plan. A group plan through your job will show little change, except that coverage may improve slightly.
An important and relatively immediate provision of the new bill regards preexisting conditions. Currently, an insurance company may choose to exclude coverage for preexisting conditions to an individual for one year, called the waiting period. After that period, the preexisting condition will be covered fully, as would any other condition. This will all change with the implementation of the new healthcare reform bill.
By mid-September, 2010, insurance companies must not exclude children with preexisting conditions. By 2014, when the bill is fully implemented, the one year waiting period will no longer exist. Preexisting conditions will be covered immediately. Insurance companies will no longer be able to deny a policy to someone with a preexisting condition. Nor will they be permitted to deny coverage for a new enrollee.
Another thing you may need to know is that the process for buying insurance will change radically by 2014. At that point, buyers will go to state-run insurance centers and online sites. Coverage will be more robust than current bare-bones policies offered by employer group packages. Costs will increase slightly for the young, while older folks will see a mild drop in their fees.
If you're of the mind to avoid the new rigors of insurance shopping, you may want to buy a good policy before the changes take place. You'll enjoy the coverage upgrade when the plan begins. If you have a preexisting condition, you'll still have a year-long waiting period. If the preexisting condition is life-threatening, it may be necessary to join the new high risk group.
No matter how you look at it, buying health insurance is not fun. It can be rewarding if you find the right policy with the right coverage at a price you can afford. However, with the upcoming changes, it would be wise to examine all your options carefully.
