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Insure A Dependent For Less (Maybe)

insure dependents for less

In today's world, employer group health insurance costs more than health insurance for individuals and families. Therefore in some cases, people with group health insurance may be able to save money by insuring their spouse or child separately on an individual health plan. But proceed carefully, as potential pitfalls do exist!

Is Your Dependent A Candidate For Savings?

Maybe, under the following conditions:

  • You pay the full group health insurance premium for your dependent(s).
  • Your dependent is healthy, with no history of any chronic or ongoing medical condition.
  • Your dependent has no need for maternity coverage.

Be aware that certain other benefits may be reduced, such as alcohol and drug rehab or mental health coverage. So compare benefits carefully.

This is a situation where the services of a good Florida Health Insurance Agent would be of value.

Significant Savings May Be Possible -- Here's Why.

In most cases in the State of Florida (and most other states today), group health insurance is offered on a "guaranteed-issue" basis. This means that a full-time employee and legal dependents can not be declined for coverage due to health reasons. (However, certain pre-existing conditions may be excluded from coverage for up to one year. Consult your health plan administrator for details.)

On the other hand, individual health insurance is medically underwritten by the insurance company. An applicant may be accepted or rejected depending on his or her health status. The decision is entirely up to the insurance company. Therefore, insurance companies are able to offer lower premiums on individual health plans because they are able to screen the risk.

Proceed With Care

1. Be sure that any new insurance application is completed accurately, with full disclosure.

2. Do not cancel any existing group coverage until you have written confirmation that your individual health plan is approved.

3. Understand the limitations and exclusions of the individual plan, especially exclusion of coverage for "pre-existing" conditions.

4. Know when your dependent can be taken off the group plan and if needed, how and when your dependent would be eligible to go back on the group plan, if needed. (This is usually during an annual "open enrollment" period.)

5. Understand that you will be responsible for the administration of your individual health plan, e.g. payment of premium, handling of claims, etc.

Savings are possible, but proceed prudently. Once again, this is a situation where the services of a good Florida Health Insurance Agent would be of value.

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