Avoid These 3 Mistakes to Save Money on Individual Health Insurance

Avoid these 3 mistakes when shopping for Individual Health Insurance and save yourself money and headaches later.

Whether you are looking for health insurance to bridge the gap between jobs and an employer sponsored health plan or you are self employed buying for the long term avoid these mistakes to save yourself both money and headaches.

Buying the lowest cost plan. Often the lowest priced plan is not the best one for your situation. Lower cost plans usually have restrictions on providers, so you may not be able to see your doctor or hospital. Also lower cost plans have higher out of pocket costs and deductibles that you have to pay before the policy pay any claims.

Buying a discount health plan or 'mini-med' plan. Discount plans are popping up more especially through the Internet. These are plans were you pay a monthly fee in exchange for access to doctors that agree to offer you discounted rates. The problem here is that the network of doctors is very small and these plans do not usually cover prescriptions.

"mini-med' plans are also becoming more popular as they offer low premiums in exchange for coverage with an annual limit of $50,000 to $100,000. On the surface they seem like a good deal, however once the policy has paid out the limit you are responsible for the rest of the bills. With today's rising medical costs $50,000, even $100,000 would not cover an extended hospital stay due to major issue such as a heart attack, cancer treatments or stroke.

Relying on COBRA. Cobra is the government legislation that allows a person to continue to pay for their employer's group plan following certain separation events such as a lay-off. Premiums are based on a percentage of the former employee's contribution. If you have current health conditions COBRA maybe the best option for you, however if you are relatively healthy you may be able to save money by purchasing your own private Individual Health Policy.

Avoid these 3 mistakes and you will save yourself some money and headache. Contact your local Independent Agent for help and guidance.

Larry Baca is the owner of NTR Insurance Services an Independent Life & Health Insurance Agency. NTR Insurance Services in based in Chino Hills, California. http://www.ntrinsurance.com Article Source: http://EzineArticles.com/?expert=Larry_Baca