Buying Your Own Health Insurance

If you are a casualty of the economic slow down, either through job loss, or a reduction in benefits through medicare, you may bee needing to buy your own health insurance. It often comes as a rude awakening to look for insurance on your own, especially if you've been spoiled by years of relatively carefree coverage through your employer.

For starters, many may be concerned about what kind of insurance they can get due to poor health or pre existing conditions. While it may vary from state to state, as to what kind of insurance is available to you, you can and should still do the research to see what you may be able to get.

Insurance usually works because companies can spread their risk over a wide range of people. The healthy ones end up paying more in premiums than they submit in claims, and the difference helps to subsidize sicker people with more expensive claims. Healthy clients accept the situation because they usually pay lower premiums than higher-risk clients -- and they never know when they might become sick themselves.

Regardless of your condition, you need to start somewhere...so let's take a look at some of the directions and places you can turn to in order to find that health insurance.

Find a health insurance broker to help navigate the territory. Brokers not only will help you shop for price, they'll also know if a company has a reputation for raising premiums or hassling policyholders who file claims. Your broker will know the field better than you, and will be a major force in helping you find what you can afford.

Finding a broker can be a task in itself. Many life- and auto-insurance agents don't deal in health insurance because the rules are complicated and the commissions low. But they may be able to refer you to a specialist. The National Association of Health Underwriters can also put you in touch with member agents in your area. Since you will be working with a broker, this person will be your connection, and you want to take the time to really find out if this person will be able to get you what you need.

Check out prices on the Web. The best way to search is to use one of the major search engines, and type in related health insurance queries. It is also a good idea to use the location where you live. This will help sort out and narrow your search results. Taking a peek at the sites may be worth your while even if you're happy with your current plan.

Visit your state insurance department's Web site. You'll probably find a list of companies selling individual coverage in your state, including those that aren't handled by brokers. For example, many BlueCross/BlueShield plans -- often one of the few choices available in highly restrictive states -- prefer to deal directly with customers, or offer such low commissions that they aren't worth a broker's time. The insurance department may provide shopping tips for your state, as well as insurance-company complaint records.

Consider taking advantage of federal COBRA legislation if you have left a company that provided group coverage. If your previous employer has 20 or more employees, the company is required by law to let you continue your group coverage for up to 18 months. Some states have similar laws for smaller employers. You generally foot the entire bill yourself, plus up to 2% in administrative charges, which can increase your costs considerably.

COBRA coverage tends to be a good deal if you're in poor health or in a market with few choices, or you want to stick with your current doctors. But because group plans often have more bells and whistles than you'd buy yourself, you might find a better deal by shopping on your own.

If all else fails and you don't want to go without coverage, you may have to bite the bullet and get a job that offers health insurance as an employee benefit.

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