Cheap Health Insurance for Kids
Both private and public health insurance plans can provide low-cost coverage for children if you shop around. The federal Medicaid program funds health insurance for needy children, and the Children's Health Insurance Program (CHIP) is administered through the states for families whose income is too high to qualify for Medicaid.
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Private Health Insurance
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You can buy health insurance from a private insurer, but the rates will be higher for one family than for a group plan offered to employees, for example. Working with a local insurance broker can help you find the least expensive, most effective plans for your children. Contrary to popular belief, your insurance will not be more expensive if you work through a broker, since his commissions are paid out of the insurance company's proceeds.
Medicaid and CHIP
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The federal Medicaid program pays for health care for low-income children, among others. Many states have similar programs for children, based on financial or medical need. Check with federal and state health departments for information about how to apply. Families with too much income to qualify for Medicaid may qualify for the federal Children's Health Insurance Program (CHIP), a fund-matching initiative subsidized by the federal government and administered by the states.
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Health Insurance Scams
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You are likely to see advertisements for "cheap health insurance" on the internet. Some of these programs are legitimate, quality programs offered at discount prices. Others are cynical scams that charge a relatively low monthly fee for worthless coverage with exorbitant deductibles and sweeping exclusions. It's important to understand and analyze every detail of a health insurance policy before you commit.
Deductibles
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One way to reduce the cost of any health insurance plan is to take an option with a high deductible. This means a greater out-of-pocket expense each time you use medical services, but also equates to a lower monthly premium. This plan is best for healthy families. If your child has a chronic illness, or otherwise needs to see a doctor frequently, a high-deductible plan will make your health care more expensive.
Health Care Reform Act
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The 2010 Health Care Reform Act made sweeping changes to health care and health insurance in the United States, and has scheduled additional changes through 2014. When looking for health insurance for your children, double-check everything you have read or think you know to see if any of the parameters have changed.
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References
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