How Does a Traditional Healthcare Plan Work?

With a conventional health insurance plan, also known as a fee for service plan, you pay a monthly premium to the insurer to stay covered. In exchange, the insurer must pay a portion of the expenses you are charged for regular healthcare, including doctor’s visits, hospital stays, and emergency care services. How much the insurer pays in each of these situations is clearly laid out in the policy, allowing you to choose the right one for you.

Often, once you reach your deductible amount, the plan will begin to cover more of the expenses. For example, a younger person with few health issues might choose a plan with lower monthly premiums and higher co-pays and deductibles. Since a person in good health does not need to visit the doctor very often, this type of plan can save money while still allowing access to normal, preventative care.

For older people, the self-employed, and those in poor health, traditional plans may not be ideal. Traditional healthcare insurance plans can be expensive in certain common situations, including:

• If you have a pre-existing condition, such as diabetes, high blood pressure, or heart disease
• If you smoke or drink alcohol regularly, an insurer might limit your coverage options
• If you are unemployed, self-employed, or work as an independent contractor, premiums can be much more expensive than a traditional salaried employee
• If you can’t afford high monthly premiums or expensive co-pays, the price of these plans might be too high

What Affordable Alternatives Exist to Traditional Healthcare Insurance Plans?

If you’ve always had coverage under a traditional health care plan, it may surprise you to learn that there are other options out there for you. Some alternatives to the traditional plan include:

• Health savings accounts (HSA): These accounts are funded by pre-tax contributions from your income, which may be matched by your employer. The plan will issue you with a debit card that allows you to access the HSA account. You can then use these funds at the doctor’s office, hospital or pharmacy counter.
• Out of pocket: If you have money saved for this purpose, you can pay the doctor out of your own funds. The costs you are charged may be higher than a patient with an insurance plan, as insurers negotiate volume-based discounts from hospitals and other care providers.
• Health Share Ministries: An example of an innovative new concept is known as Christian healthcare-sharing ministries, is UHSM: a nonprofit, faith-based health-sharing ministry offering coverage for people with shared values and principles. Governed by principles taken from Christianity, these programs strive to bring high-level coverage to individuals and families across the nation.

If you are looking for affordable healthcare from a non-traditional health insurance option, you don’t have to take this process on alone! Contact us today to find out more about the kinds of coverage available to you.