One way to ensure that you receive adequate health care coverage and protect yourself from high medical bills is through an individual health insurance plan. The Affordable Care Act also requires most Americans to have some type of health insurance coverage or pay a fine, so it’s even more important than ever to understand the different types of individual health insurance available and how each can affect your life financially in the event of a serious illness or injury. If you’re thinking about buying individual health insurance, learn about the 10 myths about individual health insurance below before making any final decisions.
Myth 1: I’m too young to buy insurance
One of the biggest myths about individual health insurance is that it’s only for old people. This couldn’t be further from the truth! Anyone can and should purchase health insurance, no matter their age. In fact, there are many benefits to getting insured at a young age. For example, rates tend to increase as you get older so getting covered early on will save you money in the long run. Not only that but if you become injured or sick as a young person your monthly premiums may decrease because insurers consider youth a risk factor. Plus, even if you are too young for Medicare, some companies offer lower rates for those who are under 30 years old.
Myth 2: I don’t make enough money
If you think you don’t make enough money to afford health insurance, you may be surprised to learn that there are options available for people of all income levels. In fact, many people who sign up for individual health insurance plans receive financial assistance from the government in the form of tax credits.
Myth 3: I don’t need it because I have a job with health benefits
If you’re like most people, you probably get your health insurance through your job. But what happens if you lose your job or switch jobs and your new employer doesn’t offer health benefits? Or what if you’re self-employed or a contract worker? In these cases, you’ll need to purchase an individual health insurance policy.
Myth 4: My employer provides coverage so there’s no need for me to purchase my own
Your employer-sponsored health insurance is great, but it’s not the only option you have for coverage. In fact, there are several compelling reasons why you might want to purchase your own individual health insurance policy, even if your employer offers coverage.
Myth 5: Obamacare has made individual health insurance out of reach for most people
One of the most popular myths about individual health insurance is that it has become too expensive since the Affordable Care Act (ACA) was enacted. The truth is, the ACA has made health insurance more affordable and accessible for millions of Americans. In fact, premiums for individual health insurance plans have actually decreased since the ACA was implemented.
Myth 6: If I get sick, I can always pay out of pocket until my deductible is met, then use my insurance
If you have a serious or chronic illness, you may not be able to wait to receive treatment until you’ve saved up enough money to pay your deductible. And even if you can wait, paying out of pocket for health care services can be very expensive. In addition, most people with individual health insurance policies have a maximum amount they would have to pay out of pocket in a year (sometimes called a stop-loss limit), after which the insurance company would pay 100% of covered expenses.
Myth 7: It doesn’t matter what kind of policy I choose – they all cover the same things and have the same level of cost sharing
One of the most common myths about individual health insurance is that all policies cover the same things and have the same level of cost sharing. This simply isn’t true. There are a variety of policy types available, and each one offers different levels of coverage and cost sharing.
Myth 8: The ACA makes everyone responsible for their own healthcare costs
The Affordable Care Act (ACA) does not make everyone responsible for their own healthcare costs. In fact, the ACA helps to make healthcare more affordable and accessible for all Americans. The ACA requires that all Americans have health insurance, but it also provides subsidies to help make coverage more affordable. So, if you’re wondering whether or not you should get individual health insurance, the answer is yes!
Myth 9: Most people use less than $3,000 in healthcare services each year, so they shouldn’t spend more than that on an insurance plan.
The reality is that medical costs are rising every year, and even if you’re healthy now, you never know when you might need expensive medical care. A recent study found that 40% of Americans have struggled to pay for medical bills, and 65% of bankruptcies are caused by medical debt. If you can’t afford to pay your medical bills, you could end up losing your home, your car, and everything else you’ve worked so hard for.
Myth 10 : There aren’t any great individual plans available anymore because ACA has killed them off
One of the most common myths about individual health insurance is that there aren’t any great plans available anymore because ACA has killed them off. This simply isn’t true. While ACA has made some changes to the individual market, there are still plenty of great plans available.