Prescott Health and Life, Prescott, Arizona
Prescott Health and Life, Prescott, Arizona
Health Insurance

Health Insurance Overview

You might think that a lot would have happened over the past decade with regard to health insurance but nothing really actually did. The Affordable Care Act or ObamaCare was passed in 2010. Although there were repeated efforts to challenge the constitutionality of the law along with an attempt to repeal it when the Republicans were in control in 2016, the Affordable Care Act remains the law of the land some 11 years later. Now that the Democrats are back in control as of 2021, there is little reason to believe that the Affordable Care Act is going to go away any time soon if ever. So what should you do now for health insurance? Is the health insurance Marketplace the only place to find health insurance? Are there any alternatives?

It is fairly common today to hear about alternative plans to major medical coverage that is only available through the Marketplace, but please beware. There are two types of alternatives that are being sold to unwary consumers. The first is what is technically called a limited coverage fixed indemnity plan. These plans pay some amount toward small medical bills for doctors but they do almost nothing for the cost of expensive hospital stays and procedures. Even though these plans pay, for example, $100.00 per day while you are in the hospital, the full cost of a day in the hospital can range anywhere from $15,000.00 to $175,000.00. Getting $100.00 from insurance is a small drop in the bucket and will leave you bankrupt at the end of the day. To be blunt, limited coverage fixed indemnity plans are a sham and a waste of your money!

The second and somewhat problematic alternative is called a short term health plan. Although these plans have major medical coverage, the coverage is limited to a certain policy limit that can range anywhere from $100,000 to $2 million depending on the plan. More problematic is that these plans are limited in duration and typically exclude all pre-existing conditions. This presents a real problem should you get one of these plans, then get real sick and then the plan ends. You will then be left with no insurance while you might still be very sick and still subject to huge medical bills. These plans are a little better than the limited coverage fixed indemnity plans but they are still a big risk to you. The only instance when a short term health plan should be used is if your need for coverage is for less than one year and when you have other guaranteed issue major medical insurance coverage waiting for you such as Medicare or employer group health coverage within one year.

There is a third alternative that is a little less problematic but it is not for everyone and it is not, in fact, health insurance at all. This alternative is Christian based sharing programs such as Medi-Share. Medi-Share has some 450,000 participants who contribute money on a monthly basis to the program and then the program pools that money together and uses it to pay medical expenses. The program costs a lot less than insurance but it is not insurance. That means that the program has no legal obligation to reserve money for future medical costs like insurance companies do and the government does not provide any financial backing if the program runs into financial troubles like it does for insurance companies. You literally need to have a fair bit of faith to be comfortable with this alternative.

Other than for these three alternatives there is the Marketplace which has the Affordable Care Act plans or ObamaCare plans. The Marketplace offers true major medical health insurance but it can be very expensive if your income exceeds a certain amount. There can also be some serious financial burdens imposed on you if your income changes after you get one of these plans in place.

At Prescott Health & Life, it is our job to know the ins and outs of all of your health insurance options. We are here to help you evaluate both the alternative plans as well as the Affordable Care Act. That is what we do. Please be sure to contact us for help so that you do not waste your time or make an expensive mistake.

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Prescott, Arizona Resource

Prescott, Arizona Resource

Prescott Health and Life is the quad-city areas independent insurance specialist agency. We represent over forty of the nation's top insurance carriers. We will research and work with you to find the insurance plan that fits your lifestyle and budget.

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Health Insurance
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Individuals and Family
NAHU Medical Insurance Short Term Health Insurance