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discount health insurance plan

Discount Health Insurance

Health Insurance Quotes

discount plans

Can you get the same plan at a cheaper price?
Would a church-sponsored plan be reliable?

Health insurance is so expensive, the possibility of a discount or other money saving angle to lower the cost of health insurance may seem worth pursuing. Why pay more than you have to?

Unfortunately, there is no way to discount the cost of a health insurance plan. There could be a government taxpayer subsidy, but that's not really a discount. Health insurance is not a product that can be manufactured in high volume to get the cost per unit down or have a close-out sale. It is an aggregation of premiums collected followed by a payment of medical expenses incurred with an additional administrative cost to get the transaction done.

Even if there are no discounts, maybe there are other ways to save, like cutting out the middleman and avoid paying the agent's or broker's markup. Why not deal direct and save? That is a false idea. The insurance company either pays employees to work with applicants or pays independent contractors, a.k.a. agents or brokers, a commission conditional on producing applications. Either way, there is a cost of getting new business and the premium price is the same whether you are helped by an agent/broker/producer or an insurance company employee. Licensed insurance producers are not "middlemen".

discounted health insurance

How about joining an association to obtain a savings with the "group rate"? That is mere nonsense, but it fools some people. Having an association does not make the members healthier and so does not reduce the claims cost and so cannot reduce the cost of insurance. Health plan marketing that hypes the "association" as a source of better value continues to operate on the fringes, typically giving less value than other health insurance on the market.

What about asking at the doctor's office for their expert recommendation because they file claims all the time so they would know best. Unfortunately, the companies that pay the doctor the most are more likely to have to charge you the most as a consequence, so that is not the answer. The best way is to compare what reputable insurers are offering you and the doctors can take care of themselves. An insurance producer who is experienced in helping people compare health insurance is going to be of more help. The doctor practices medicine, not insurance.

Even Worse - Unregulated Insurance

What if you were "lucky" enough to find low priced discount health insurance at half the price of other companies but it isn't licensed by the state to do business? It's likely to not have enough income to pay claims like real insurers do. The time comes when such operations run out of money. Apparent monetary miracles eventually collapse, leaving the gullible groaning again when stuck with large unpaid claims. Whether it is derived from a scam or bad management, too low a price can cause as much or greater a loss than too high a price.

Hoping for non-existent angles like these when looking for affordable health insurance may send the health insurance buyer looking in the wrong direction.

False assumptions can result in not getting the best help and not making the best choice. However, the sensible shopper can make a good decision using online comparative quoting and calling for help when needed.

Here is a comment on the topic from a state insurance regulatory authority (neither affiliated with, nor endorsing anything on, this website).

Church Discount Health Insurance

discount health care plans

Unregulated "promise to pay" programs operating under the umbrella of religion can seem the most affordable, but end with severe disappointment when the money runs out. When there is a lack of checks and balances, there is a greater risk of failure. Without oversight from a state regulatory body, believers are always risking financial malfeasance by trusted insiders or mismanagement from well-meaning incompetents. Faith in people gets confused with religious faith. It's safer to have a higher out-of-pocket arrangement with a licensed insurer where regulations are a check against possible bad management than an unregulated "great deal".

To keep premiums down, consider buying an HSA qualified plan instead of such risky programs. Sound insurance must be good enough to meet the minimum standards of state regulation to be dependable.

Health Insurance Discount

Trustworthy, financially strong health insurance companies have to collect enough income to pay claims. They also need to operate as efficiently as possible. How could a legitimate health insurance company intending to stay in business afford to give a "discount"? There would be inadequate income to pay claims and cover operations costs, and other insureds would have to pay more to make up the deficiency.

Insurance companies do not manufacture health insurance in a factory. Wholesalers and retailers do not stock up on health insurance products. There are no close-outs on overstocked health insurance plans. It's insurance! There is no discount, ever. There could be a government subsidy for low income people called a discount, but that's not a real discount, that's a taxpayer-financed subsidy.

Anyone claiming to have discounted rates should be checked out carefully and probably reported to the state's Department of Insurance. The way to find the most affordable health insurance is to compare the plans offered by reputable companies. Bear in mind that just because you have not heard of a company, does not mean that it is not reputable. Many individual health companies do not advertise in the media. They rely on agents-brokers-producers, i.e., independent licensed insurance people, to sell their plans because it is more economical than expensive media advertising.

It is easy to misunderstand health insurance and not make the best purchase. We strive to help you get the facts you need to know so you can make the best decision for you.

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