No matter what you buy, there will always be a correlation between price and benefit. Whether it’s a pair of shoes, a car or even a new dishwasher – anything that sounds too good to be true, usually is. Cheap health insurance is no different. When it comes to insurance, there are no bargains.

There are many reasons that they can sell cheap insurance. One reason is that they can sell cheap insurance only if they provide very little in return. Sometimes they have to worry about the number of claims they would need to pay out, too. Too many claims could put a company out of business. Ratings for these companies will be very low, which is a big red flag right up front! Another reason the premiums might be really low is that the doctors associated with the plan are being paid below industry rates. Or their deductibles are so high that they are useless.

Companies that sell this type of cheap insurance want to keep their risk levels at a minimum. In effect, if they haveto pay out too much money, they could be in trouble. They are in the business to make money, period. These companies have little concern for patient health or healthcare and they rarely are eager to pay claims at all, never mind on time.

Be very careful when choosing a doctor on one of these plans, too. Since these doctors are working for pretty low reimbursement rates, you need to do a lot of research on each doctor you may be interested in working with. You need to understand why he willing to work for that money. There’s a chance he never graduated from a US based medical school, or even worse.

Deductibles for this type of cheap insurance are typically higher than normal and totally unreasonable. If you or your family make frequent doctor appointments, this is not the best insurance for you, no matter what the price is.

See Also Entry Below