Low Income Health Insurance

The U.S. has one of the most expensive health care systems in the world.  A huge percent of the GDP is spent on our health care system.  Because the U.S. runs a private insurance health care system, it means that many people are left without health coverage.  Although health insurance is very expensive, there are certain plans available for low income health insurance plans available.

The first option you can take is a high deductible health plan which is also known as catastrophic health insurance.  The more amount of money you pay in deductibles, the lower your monthly payment will be.  The main issue with such a high deductible is that you will be unwilling to go for a regular doctor check up because the deductible is so high.  This discourages people from getting proper checkups and can often lead to severe problems down the road.  The catastrophic health insurance is good for expensive procedures such as operations, hospitalization, or even emergency medical.

Another step you can do to get affordable low income health insurance is to set up a HSA (Health Saving Account).  An HSA can be used to help you save money on health insurance and also works in conjunction with your high deductible health insurance plan. 

HSA’s are saving account that is designed specifically for your health insurance needs.  The money that you put into this account would be tax free and allow you to automatically deposit money in the account every month.   The benefit of an HSA is it can act as an emergency backup in case that you don’ have enough money to cover your health care.

The money that is taken out from and HSA can be withdrawn at any time for medical purposes and you won’t have to worry about paying tax on it.  When you turn 65, you can withdraw the money at anytime and not have to pay any taxes on it.

Getting catastrophic health insurance and a HSA together can work will for low income health insurance, but doesn’t necessarily work for everyone.  This plan is good for cases of emergency and accidents, however, doesn’t do a good job of preventative health care.  If you have a chronic illness, or need regular doctor checkups then you would do better with a traditional health insurance plan

Remember that the most important thing you can do to get quality low income health insurance is to look around.  Go online and see what offers are available for budget health care.  Be sure that the company you sign with is trusted and reliable.  If you are willing to look around you will be able to find affordable health insurance.