Types of Plans

When it comes to TRUE health insurance there are basically two types of coverage. What I mean by TRUE health insurance is that there is an out-of-pocket maximum for YOU as the client. In other words, once you're out of pocket a certain dollar amount for your medical bills, you are covered at 100%.

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The first type which most people are familiar with is Marketplace, also called Obamacare or ACA. In Louisiana, this is most commonly Blue Cross Blue Shield. These plans are based on income and must cover all pre-existing medical conditions. Obviously, having to cover the sickest of the sick drives the price up on these plans. However, if you’re low income they will pay part or most of your premium making them more affordable. Therefore, these plans tend to be best if you're low income or have a lot of medical conditions.

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The other type of health coverage is through the private market. These plans are underwritten, which means they're based on health. If you earn a decent living and are relatively healthy, these are usually a better option. What these plans do is put you in a nationwide group with other relatively healthy people which gives you strength in numbers, kind of like a group plan, thereby bringing the cost down and giving you better coverage.