Is your current health insurance not covering everything you need, or is it too expensive? Discover the top alternative types of health insurance here.
Did you know that back in 2020, healthcare spending in the U.S. reached $4.1 trillion? That equates to $12,500 per person, on average! Helping reduce those costs, in turn, is supposedly one of the benefits of health insurance.
Unfortunately, most types of health insurance in the U.S. are also expensive.
That doesn’t mean you can no longer get lower-cost health plans.
To that end, we created this guide on alternatives to marketplace plans. Read on to discover what your top options are.
1. Care Membership Plans
Care membership plans provide members with access to care for a monthly fee. That monthly cost is often lower than traditional types of health insurance plans.
Most care membership plans cover laboratory tests and urgent care services. There are even providers offering coverage and savings for prescription medications.
Members can access the care they need by visiting one of their plan provider’s facilities. Their locations are usually nationwide, another of their top benefits.
All that makes care membership plans an excellent alternative to conventional coverage.
The primary drawback to membership programs is that they often exclude emergency care. Likewise, most don’t provide coverage for catastrophic events.
Still, a membership may be a good choice if you need a lower-cost type of health insurance coverage.
2. Short-Term Health Insurance Plans
Short-term health insurance plans provide limited coverage for a limited period. The term is usually 12 months, so the contract expires after a year. However, its chief benefit is that it costs less than a marketplace plan.
Before purchasing a short-term health insurance plan, check its inclusions. Otherwise, you might buy one that doesn’t cover prescription drugs. That’s a massive drawback, as folks in the U.S. pay over $1,500 per person for prescription medications.
Another crucial aspect to look for in a short-term health plan is mental health care coverage. One reason is that many of these plans exclude psychiatric or psychological treatments.
Maternity care may also not be part of a short-term health plan coverage. Indeed, a 2018 analysis found that none of the studied plans covered maternity care.
Despite all those flaws, you might still want to consider a short-term plan for emergency care. It does usually provide coverage for accidental trauma, after all.
3. Health-Sharing Plans
Health-sharing plans replace insurance premiums with a small monthly contribution. That then goes into a pool of resources that members with eligible medical expenses can tap.
For example, suppose you get sick with an illness covered by your health-sharing plan. The plan provider then allocates some of the pooled resources to cover your costs.
What if you don’t get sick during a specific month? In that case, your money goes to helping out another plan member who does get sick. If you’d like to learn more about how this sharing process works, click here.
Consider These Other Types of Health Insurance
And there you have it, the alternative types of health insurance that you might want to consider. Just remember that marketplace plans still offer the most coverage. However, if you lack the budget or need more coverage, it might be wise to look into these other options.
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