Low Cost Health Insurance

Some people would argue there is a national healthcare crisis here in the United States, and low cost health insurance should be available to all citizens. While that last statement is certainly debatable, we're going to address the issue of low cost health insurance in this article.

We're going to do that by first highlighting some recent health care statistics, including health insurance coverage.  For those individuals that are looking for some low cost options, we'll help you figure out if you qualify for low cost, or no cost, health insurance.  We'll also tell you where you can go to find out if you qualify for government sponsored programs.

Health Insurance Coverage

Each year, government agencies such as the Census Bureau and the U.S. Department of Health and Human Services conduct surveys aimed at determining the numbers of people in the United States covered by health insurance plans.  The latest statistics (2010) from those agencies tell us:

• The total number of individuals in the United States with health insurance coverage increased from 255.3 million in 2009 to 256.2 million in 2010.
• There are approximately 49.9 million people in the U.S. without health insurance coverage in 2010, which is up from 49.0 million people in 2009.  On a percentage basis, this represents an increase from 16.1% to 16.3% of the population.
• Most individuals in the U.S. (55.3%) were covered by employer health insurance plans in 2010.
• The number of people covered by government sponsored health insurance programs increased to 95.0 million people, which is 31.0% of the population.
• Nearly 16% of all children living in poverty do not have health insurance.

That last statistic is particularly disturbing because there are programs aimed at delivering low cost or no cost health insurance to children.

Children's Health Insurance Program

The Children's Health Insurance Program, or CHIP, is a program jointly sponsored by the federal and state governments to offer, and expand, low cost and no cost health care coverage to over 5 million children throughout the nation.  (The program was formerly known as State Children's Health Insurance Program, or SCHIP)

The program provides for over $60 billion in federal funding as well as state matching funds.  Each state has the flexibility to establish their criteria for eligible uninsured children.  Alternatively, they can also choose to use this money to expand their existing Medicaid programs, or design a specific program aimed at child health care services.

Typical medical care offered under this program includes:

• Doctor Visits (including well care services such as immunizations)
• Prescription Drugs / Medicines
• Hospitalizations / Hospital Care

Perhaps the most popular program run today under CHIP is the Insure Kids Now initiative.

Qualifying for Health Insurance Under Insure Kids Now

You can qualify for low cost health insurance for your children if they are age 18 years and younger and you meet certain eligibility rules.  For example, a family of four that earns $45,000 or less qualifies for the program (2011).

These programs are run by all 50 states and are founded on legislation passed in 1997.  Eligibility is based on income levels and the size of your family.  If Medicaid already covers the child, then they have access to low cost or no cost health insurance and are not eligible for this program.

Each state has its own program, and you can follow this link to find your state's offering.  These low cost health insurance programs are funded through taxes collected at both the federal and state level.  Generally, the insurance covers doctor visits, prescriptions, and hospital stays.  Some states will also cover the cost of dental care, eye examinations, and specialized medical equipment your child might need.

Applying for Low Cost Health Insurance

The low cost health insurance application process is designed to be very simple and very short.  Most states offer the choice between completing the application through the mail and even applying over the telephone.  Parents are not required to give their Social Security number when applying for insurance, but it is likely that you will need to give the Social Security number of the children you wish to insure.

Additional information you are likely to need for the health insurance application includes proof of your family's income, any childcare costs you currently pay, and some information concerning the last time the child was covered by any health insurance.

Congress recognizes that low cost and no cost health insurance is important for many reasons.  Immunizations can help prevent disease.  You'll be able to bring your child to a doctor when they are sick and not have to worry about paying for the service.  Studies confirm that children with health insurance live more healthy lives, miss school less often, and therefore perform better in school.

Providing low cost health insurance to children is an important step in securing America's future.  Visit your state's website, look into their program, and find out if you're eligible for benefits.

Low Cost Health Insurance through Medicaid

If you're a U.S. national, citizen, or permanent resident, you may qualify for low cost health care insurance under the Medicaid program.  Assistance is generally offered to individuals and families with income levels at or near the poverty level.  Each state is responsible for establishing their guidelines to receive Medicaid benefits.

Health Care Services through Medicaid

In order for state run programs to be eligible to receive federal matching funds, there are certain basic medical / health care services that must be offered to needy populations.  For example, the health care help available through this program must include services such as:

• Inpatient and outpatient hospital services
• Payment of physician services
• Surgical and medical dental services
• Nursing facility (NF) services for individuals aged 21 or older
• Home health care for persons that are eligible for nursing facility services
• Family planning services and supplies
• Nurse / midwife services
• Laboratory services and X-rays
• Pediatric and those services provided by a family nurse practitioner
• Federally-qualified health center services and ambulatory services that are otherwise covered under a state plan
• Rural health clinic services and other ambulatory services that are otherwise covered under a state plan

States may also provide home or community-based care waiver services to certain individuals who are eligible for Medicaid.  Such services can include case management, personal care services, respite care, adult day health services, and home health aides.  We've provided more information about this important and helpful program in our article on Medicaid Benefits.

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