The rising cost of traditional health care has led some Americans to look for ways to get alternatives while staying within their monthly budget. However, not all strategies will protect you in the event of a medical emergency. Remember, some kind of standard health plan that complies with the Affordable Care Act (ACA) should still play a role in your healthcare services.
It’s worth looking for health insurance. The American Rescue Plan Act of 2021 lowers premiums for most people with market health plans and expands access to financial assistance for more consumers. Many people who buy their own health insurance qualify for increased tax credits to lower their premiums. Marketplace plan premiums will be reduced by an average of $50 per person per month. Four out of five policyholders could find a plan for $10 or less after the incentive tax credit, and more than half could find a silver plan for $10 or less.
As with any consumer product, if it sounds too good to be true, it probably is. Here are four promising health care cost-cutting options you should know about
Primary Care Membership
Some doctor’s offices and GPs offer services for a fixed monthly fee, similar to gym memberships. This is often referred to as concierge medical service or stationary medical care.
Individuals or families have access to the usual services of a GP, including virtually unlimited doctor visits, blood tests and pediatric care, all at no additional cost. Of course, such agreements do not include surgery, hospitalization, serious injury treatment, or specialist care.
Most people who choose this option supplement their basic care membership with high-deductible, low-premium health insurance.
Benefits of an essential care membership include the promise of virtually unlimited access to the family doctor of your choice without having to rely on a specific insurance network. According to Consumer Reports, this type of care works best when used in conjunction with an existing health plan.
Disadvantage: These practices usually cover a narrow range of services. This means that if you need special treatment or major medical care, you will still need to maintain standard medical coverage. Because it doesn’t count as insurance, it lacks the consumer protections required by the insurance regulators that oversee traditional health plans
Disastrous policy
Young adults who are in good general health and do not expect high medical bills throughout the year may consider a low-premium, high-deductible policy that only covers unexpected serious injury or illness. Catastrophe medical insurance ensures coverage and minimizes insurance costs in the event of such unforeseen medical expenses.
According to the Court of Auditors, the disaster plan covers essential services, but the deductible is quite high. They correspond to the ACA’s deductible caps: $8,550 for individuals in 2021 and $8,700 for 2022.
Disaster plans can only be used by those under the age of 30. People 30 and over can try to qualify on a hardship waiver basis. Examples of difficult cases are the death of a family member or financial hardship.
Besides the main benefit of low premiums, the disadvantages are also worth careful consideration. You don’t qualify for premium subsidy assistance under the ACA, and these plans don’t allow you to put money in a Health Savings Account (HSA), even though they do have high deductibles
Medical Cost Sharing Plan
Participants in programs like Medi-Share, a Christian health service, pay a monthly fee similar to an insurance premium. Note, however, that health shares are not health insurance — and therefore not regulated by state insurance commissioners — but nonprofits. Members pool resources and theoretically “share” each other’s medical costs. Each member who needs medical services is required to pay an “accident fee,” which is similar to a co-pay. The rest of the medical expenses are covered by levies.
The biggest advantage is lower cost. These programs often negotiate discounts with GPs and hospitals to keep costs down. Monthly fees are usually lower than traditional health insurance. These health sharing arrangements often result in cheaper premiums for individuals who are not eligible for ACA grants.
The main disadvantage is that there is no guarantee that healthcare will be covered. Many cost-sharing programs are run by religious organizations that exclude certain services, such as B. birth control and substance abuse treatment. Some plans do not guarantee that you will get reimbursed for all of your bills (it may be “voluntary”), and many have very limited per-incident and lifetime caps. Health shares are not regulated by the ACA, and they are not required to cover pre-existing conditions, limit out-of-pocket expenses, or cover essential health care services. In fact, they are not required by law to make any health claims
Medical Services Discount Card
You may have seen medical discount programs stating that you can pay cash for discounted doctor and hospital services, prescriptions, or a combination thereof. Vendors say discounts are steep, as high as 80% or more. But be careful. Many plans are banned from operating in some states, and providers are coming under increased scrutiny from state insurance regulators and the Federal Trade Commission (FTC).
The biggest advantage is lower cost. These programs often negotiate discounts with GPs and hospitals to keep costs down. Monthly fees are usually lower than traditional health insurance. These health sharing arrangements often result in cheaper premiums for individuals who are not eligible for ACA grants.
