The importance of choosing the right health insurance plan for you and your family cannot be overstated. While everyone, of course, understands this, what is less clear is deciding on a new one, if required to do so after relocating.
According to the United States Census Bureau, the average American will relocate approximately 12 times during their lifetime. About 28 million people move their households every year in this country. Interestingly, those belonging to the wealthier echelon economic upper-class are less likely to move than those earning household incomes below the national average.
This theorizes that less affluent households are more likely to remain mobile while searching and working toward a better living standard. Wealthy people have fewer incentives to relocate.
These demographics produce a never-ending demand for a service that has resulted in one of the largest sectors in the US economy – health care.
As a percentage of GDP, health care comprises about 18% of total economic output annually. As such the United States has the highest healthcare spending as a share of its GDP than any other country in the free world.
For many Americans on the move, shopping for health insurance might become necessary as households move out of an insured territory (usually defined by state lines) and into another. Unless one is federally insured, for example by Medicare or the Defense Department, most health insurance plans are not easily portable. Medicaid, by comparison, is managed at the state level, and each state has its own eligibility requirements. For those covered by Medicaid reapplying and qualifying becomes necessary after moving.
Accordingly, this entertains new decision rules be defined for those households relocating.
The Affordable Care and Jobs Act of 2010 intended to legally require every American to have a health insurance plan regardless of affordability. Failure to do so would result in punitive money damages to those uninsured which would be enforced by the US Treasury Department. The practical effect of this was to forcibly migrate tens of millions of Americans onto Medicaid.
But for those unable to qualify for Medicaid many found themselves shopping for health insurance plans. In many locales, there would be only one insurance plan available, as private insurers determined the cost of participating in this marketplace exceeded the benefit and decided to flee certain proximities. This consolidation of available plans caused plan premiums to sharply rise for those unable to competitively shop for alternate plans.
This circumstance underscores the urgency of planning ahead as you prepare to move. It is imperative to secure health insurance that meets your household’s needs as part of the cost of moving, less those unprepared might face daunting premiums and unexpected plan limitations upon arriving at their new destination along with trying to select a new roster of healthcare providers who participate in the network.
It is a good idea to research insurance plans available in the area along with premiums, deductibles and copays. This strategy will help sharpen budgeting as you ready your new home.
