Children's Health Insurance

By Author: Cris Brines
Total Articles: 4762
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If you are a concerned parent wondering how you'll be able to cover any health care costs for your children because you are uninsured or cannot add them to your current policy for some reason, purchasing a lone policy is always an option. However, shopping for any type of insurance can be intimidating, and naturally you'd like to know you're making the right choice and doing business with someone you can trust. Following are some of the things you should consider before choosing a specific children's health insurance plan:

Types of Coverage

First, determine what types of coverage you need for your child. Do you simply need major medical insurance in case of an accident or major illness? Or, does your child tend to visit the doctor often and require costly prescriptions? It may also behoove you to consider adding dental or vision coverage to your children's health insurance policy, as many companies may offer grouped plans so all of your coverage is with the same carrier and paid on the same bill.

Budget

Next, it's time to take your budget for your children's health insurance coverage into account. ...
... Many parents choose to first only purchase coverage for their children because these policies are much less expensive than those which cover adults. This may also be a good choice if for some health reason you cannot switch policies at this point or are subject to a waiting period before a company will consider covering you.

At the same time, you need to ensure the monthly or semi-annual premium is affordable enough that it will always fit into your budget. Should your child's coverage ever lapse and he or she becomes injured or ill, any related costs will not be covered. You may have to start over with the application and approval process if your child is still considered insurable.

Also, remember that you can't simply get something for nothing. An A policy that offers $10 co-pays, $500 deductibles and few exclusions will cost much more than one with a larger deductible or no co-pays. Remember that because you have insurance, your health care provider will bill the insurance company first. Most bills will be recalculated with discounts from the insurance company before you are required to pay the provider. This process will save you significant funds.

Know the Company's Payment History

It's best to always do business with a reputable company when purchasing insurance for anyone in your family. This is the one time when cheaper may not always be better. Even the least expensive policy is far too expensive if the company does not pay claims or has several complaints lodged against it. If this is the case, many health care providers are likely privy to the fact and will even refuse to accept insurance from such a carrier.

You also need to ensure that the company you're considering is appropriately licensed to do business in your state. Within a state, policies offering identical coverage cannot differ in premiums, so make sure you're comparing apples to apples. Generally, a known carrier or company is your best bet when purchasing a children's health insurance policy.

Limitations and Exclusions

Perhaps the most misunderstood portions of an insurance policy are the limitations and exclusions. These will vary between policies and companies, and you should pay attention to them. Often, specific types of services will carry a limitation or maximum amount the insurance company will pay for them. If the insurance carrier has a limitation of $1,500 on ambulance services and your child's ride to the hospital cost $4,000, you are responsible for the difference regardless of your deductible amount.

Another important limitation is the lifetime limit which may be $1 million, $2 million or more. This lifetime limitation is the maximum amount the company will pay for your child's healthcare over his or her lifetime while covered under the policy. This may be important to you if your child is at high risk for chronic diseases. For example, a child who is diagnosed with leukemia or another serious illness will reach a total of $1 million in health care costs quite quickly.

You also want to ensure the proposed policy covers all services you need. Exclusions may include prescriptions, certain lab tests, emergency services, organ transplants or life support services. Do your homework and conduct research well before you may ever need to deal with any of these situations to further ensure your choice in children's health insurance is the correct one for your family.
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