What Are Alternative Health Insurance Options?

There are alternative health insurance plans that are available for individuals looking to provide some form of health insurance coverage.  The types of alternative health insurance plans available include discount and indemnity plans and short-term health insurance.  These alternatives fill a gap for health insurance and provide some relief from the high cost of healthcare.

Discount Plans

A discount plan is one that a person pays a premium for and the plan sponsor works with a healthcare provider to negotiate a lower cost for care.  The plans can negotiate a reduction in healthcare costs that are as low as 20 to 60 percent.  The plan is not insurance so that it does not pay the medical bill.  It simply lowers your out-of-pocket expense.

Indemnity Plans

Indemnity plans, also known as cash reimbursement plans, pay you an amount directly related to being sick or hospitalized. The plan has a premium that you pay and when you become sick or hospitalized, a predetermined sum is paid to you in the form of a check.  This money can be used to pay medical expenses for whatever other needs you may have.

Short-Term Health Insurance

Short –term health insurance plans provide gap coverage for an individual who is no longer eligible for COBRA and is in a transition period for a new job.  Short-term health insurance plans usually have a policy period of 6 months and are only needed to fill a short-term or temporary need of the insured.

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