The field of health insurance is a bit complex as there are multiple policy providers. The three principal providers include the employers, public, state, or Federal bodies, and lastly, the private sector. Health insurance average cost, theoretically, depends upon the policy that a person opts for. Government-granted policies are, of course, on top of the range for all consumers and are also reliable and cheap. In the United States, the common man has two very good options. First, opt for the policies that are provided by the government. In addition, have an insurance company’s policy or the employer’s one. The second aspect is a bit different as taking up a superseding ‘big’ insurance policy can also turn out to be very good. The policy cost may seem to be a bit high; however, the total premium and the returns that you receive in the future will be good.
The advantage of a superseding policy over many other options is that it will cover many health-related expenses and risks, such as dental insurances and chronic illness expenses. The advantage is that the paperwork and multiple payments are reduced down to just one annual transaction, and you and your family will be insured for a lifetime.
Factors that Affect The Cost
It is quite impossible to state an exact figure as there are a considerable number of differences in the costs from state to state and policy to policy. The following points cover some figures that you should certainly consider while researching for a policy that suits you the best:
• A more generalized answer―as per several financial surveys, an average of USD 4,500 to USD 6,000 approximately is required for a standard individual health insurance policy.
• In circumstances where the person suffers from chronic disorders such as diabetes and blood pressure, the cost of premium goes up. An additional program is offered by some insurance companies where the person concerned can avail different compensations and claims against expenditure that is insured as a result of the disorder.
• In cases of families, the annual premium cost goes up to USD 12,000 to USD 16,000 approximately depending upon the number of members and chronic disorders.
• An excellent addition that can be availed in an individual policy as well as family health policy is the maternity insurance. There are different plans and conditions for the same that can be availed in this process. Some policies cover all prenatal expenditures plus the expenditures during the birth. Some of them, however, cover those that are incurred during birth.
• Lastly, some health policies are specifically meant for individuals with certain diseases such as cancer and AIDS. Though the premium might be as high as USD 16,000 per year approximately, the companies have reliable tie-ups with the medical system that enable people to ease their pain and smile, without having the nagging worry of a medical bill. In many cases, such policies have also enabled patients to get specialized medical attention that has cured the disease.
Options for Health Insurance
The best options include the following United States programs:
The Federal Employees Health Benefits (FEHB) Program
Military Health System
The Children’s Health Insurance Program
Veterans Health Administration (VHA)
Apart from the governmental options, you can avail private insurance policies. In such policies, an average young adult will have to pay about USD 160 to USD 450 per month. Some other figures that you can consider to aggregate the average cost per person include:
• On an average, premiums of policies for people who are below the age of 18 range from USD 1,200 to USD 1,700 approximately.
• For people above the age of 55 and below 64, the premium amount will be about USD 5,000 and 6,000.
• The out-of-pocket expenditures will amount from about 5% to 17%, or in some cases, more of the expenditure.
• For non-payment of premium policy, a requisite interest that can be as high as 10% is levied.
• For married couples in the age group 20 to 50, a maternity insurance is included in the expenditure. The premium increases as per age of the insured person.
• You may have to take up some minor additional insurances such as the dental one that has a premium, ranging from around USD 200 to USD 600 per year, to cover up uninsured aspects of health care.
• Long-term care insurance is a bit costly, and even though in many cases it is organized by the government, it might have a premium that goes as high as USD 10,000, though average all-inclusive policies have a USD 5,000 to USD 6,000 premium approximately.
When you opt for an insurance policy, it is better to calculate and observe the quotes. Lastly, if you are looking for some temporary arrangement, have a look at some low-cost or even short-term policies.