What affordable health insurance would you recommend for my uninsured 21 year old daughter?

Answer 1

It would be inappropriate to make a specific recommendation to an insurer in this forum. Further, there are many facts that go into the decision, none of which are contained in the question.

That said, some of the factors to consider include:

1. Determine whether you would prefer a managed care arrangement or an indemnity plan. A managed care plan can provide very good care and tends to be less costly. What you give up is some element of choice of the care providers, as you are generally limited to those providers who are approved by the plan. Managed care plans come in several varieties, but the common denominator of most is that the member (your daughter) selects a primary care physician from the plan, and he/she provides most care. If a specialist is needed, the primary care physician must OK and make the referral.

In contrast, an indemnity plan allows more choice of physician in that there is usually no need for the plan to approve the desired care. Instead, it is a question of whether the physician that is desired accepts the insurance that you have.

2. Regardless of what format you choose, it is critical to make sure that the insurer is licensed ("authorized") to transact insurance business in the state in which your daughter resides. There have been many frauds in recent years where entities purport to have necessary authorization, or to be exempt from license requirements. Be sure to check with the insurance regulator of your state to ensure the required authorization.

3. Decide whether you or your daughter is able to absorb a substantial portion of her own cost of medical care. If so, she may want to consider a policy with a very high deductible, or one that covers only extraordinary occurrences that are very costly. While the latter are less costly in the short run, they can prove to be ruinous if a serious illness or accident occurs that was unexpected.

4. She can also consider a medical discount plan. These plans ARE NOT INSURANCE in that they do not assume the risk of payment of medical expenses. Instead, membership in one gives the member the right to access physicians who have agreed to render services at reduced fees. The member is responsible for the payment of all professional service fees. Plans such as these can be attractive if health issues or limited funds preclude traditional insurance.

5. If you have a relationship with an insurance agent or broker for your other insurances, by all means use him/her as a first step. Many life insurance agents also represent health insurers.