Self Employed Health Insurance can be expensive, especially if you have a family. There's no reason to "sugar coat" the facts. The fact of the matter though is that, unfortunately, it's something that you must have, especially if you have a family. You can save yourself money and give yourself peace of mind by knowing how the basic health insurance policies work and the coverage that they provide. This is generally the same, whether you're in need of self employed health insurance or not.
Basic Medical Policies
Basic health plans have low limits of coverage. Also, there are no deductibles or coinsurance used, which means that it pays first dollar coverage and pays only the usual and customary fees. These are standard fee rates that are set by your insurance company for each medical procedure. Even if the doctor or hospital you see charges more, your policy will only pay according to their own guidelines.
Basic medical can include any or all of the following policies.
Pays a stated daily amount only while you're in the hospital (confined). An example would be $500 per day for a limited number of days, like 30 or 60. This type of coverage can be issued by itself or in combination with Medical Expense policies.
Other miscellaneous ancillary expenses while in the hospital include; physical therapy, dressings, drugs, operating rooms, x-rays, recovery rooms and more, up to a specified limit, like $10,000. Your coverage could be based on a multiple of the daily benefit amount, like 30x. Example, we used $500 per day in the previous example so that multiplied by 30 would be $15,000.
Both of these are reimbursement contracts.
Basic medical policies provide what's called a "schedule of benefits". This schedule shows the maximum amount payable for each covered procedure. This coverage is normally provided on what is called an "absolute" basis. This means that it will only pay a specific amount for a certain procedure.
Don't let this stuff intimidate you. Just like anything else in life it must be learned. Basically, my intent here is to give you a brief education on what you'll need to be discussing with an insurance agent when you're ready to buy your self employed health insurance policy. Wouldn't you want to know what was actually covered within your policy and for how much rather than find out later that you didn't have enough coverage? Of course you would. Educate yourself now and save in the long run.