For a serious illness or injury health care related expenses may run into hundreds of thousands of dollars. For example, in Colorado state it is very important to have adequate health insurance protection, especially if the person deemed to be "at fault" is you, the driver of a car you are riding in, or if the "at fault" driver is insured. We offer you a three-step strategy which can help you to save your time and money while you are looking for health insurance:

Step 1: What to prefer: Individual or Group Health Insurance Coverage?

Individual health insurance plans are very popular among those people who have to buy their own health insurance. For example, healthier self-employed and small business people as well as their families. A private health insurance plan usually has lower premiums than small group plans. Moreover, individual plans are medically underwritten that's why it's important to get this coverage in time while you're relatively healthy. It is very important to know that all individual health insurance plans are non-cancelable and renewable. This rule works till you are eligible for Medicare at age 65 and continue to pay your premiums as well as live in the service area.

Many private health insurance plans offer the job health insurance coverage to the self-employed. Eligibility requirements of individual health insurance plans usually vary. The difference depends on your type of business (LLC, Sub-S Corporation etc.) Anyway, make sure that you meet the requirements for on the job coverage. Private health insurance plans require 100% tax deductible premiums but there is a necessity to verify eligibility for this deduction with your accountant.

There is a special "Group of One" designation in private health insurance plans for persons who own small business. In general, there is no difference in premium cost between a standard individual health insurance plan and Group of One individual plan. But here you have to qualify medically. Concerning a Group of One individual plan it should be noticed that the small business person's business can pay the insurance premium.

There is also a group health insurance coverage option known as CoverColorado which is designed for qualified small business owners who have serious pre-existing conditions. Many people enroll in these plans because their health conditions do not allow them to apply for less expensive private health insurance plan. For this reason a Group of One individual plan is fairly expensive.

Those individuals who has serious pre-existing conditions may also be entitled for guaranteed issue coverage from CoverColorado and escape risk, because their premiums are usually about 35% more expensive. CoverColorado does not offer coverage for on the job injuries or illnesses that's why they must be paid with individual funds.

In case when an employer has 2 to 50 employees, he or she can establish a small group health insurance plan which has no medical underwriting and are particularly attractive to groups that include people with serious health problems. A small group health insurance plan would give them an opportunity to qualify for less expensive individual coverage.

It is possible to get this type of insurance only if the employer is ready to pay for any portion of their employees' health insurance premiums. Usually the employer should pay least 50% of their employees' premiums and bring a certain level of employee participation in the plan. Groups of more than 50 employees have many advantages and are considered as a part of the large group market.

You may be subject to a pre-existing conditions clause in case when you do not have health insurance coverage or have a break in one. Usually it endures from 6-12 months and covers conditions you were using for in the 12 months directly taking precedence of your new health insurance coverage. Small group insurers and individual insurers in Colorado have to provide a credit for prior continuous coverage which counts continuous if it is not break in during 60-90 or more consecutive days. So, prior coverage does not require credit against any exclusionary riders in an individual policy.

Step 2: What to prefer: a Copay plan or a Major Medical/HSA plan?

Health care market consumers have to be savvy about their options and choices because drug and health care costs drove up health insurance premiums.

But there are still many reasons to get a feature-rich plan with copays for doctor visits and prescriptions. It is especially comfortable if you are interested in plans with deductibles of $500 or more, because these plans usually offer many immediate benefits to offset daily health related costs. Of course you may prefer a health insurance plan that will protect you from some little things. Or you may get a relatively inexpensive major medical or catastrophic plan to protect you and your family in the event of more serious problem.

Health Savings Account (HSA) plans are designed to be particularly well suited to healthier small business people. With a higher deductible Health Savings Account medical insurance plan, in comparison with a traditional copay plan, insurers can often save relatively big money each year in reduced insurance premiums. But it should be noticed that premiums are often reduced while reducing the insurer's aggregate deductible and coinsurance risk.

How does it work? First of all, an insurer must have a relatively inexpensive HSA qualified major medical health insurance plan. With the one he is eligible to open a Health Savings Account. Money saved from the reduced insurance premiums can be used to grant funds of a Health Savings Account. In this case your contributions to the HSA are 100% tax deductible. Later you can use money from the HAS to cover your health care expenses. For example, prescription drugs, doctor visits, dental and vision care etc.

HSA offers a long-term savings advantage. Because any money you did not spent is yours and you can keep your money and grow them from one year to the next one. If during your working years you are relatively healthy, you can get a sizable tax advantaged nest egg by the time of your retirement.

HAS plans are rather special, that's why we recommend you to compare the premiums and benefits of the most popular copay plan with the most attractive HSA plan. Maybe this analysis will help you to determine which plan suits you the best.

Step 3: Shopping for Health Insurance: Days or Minutes?

That's not a secret that market is a place for competition. It may seem that there are mane similar plans, but do not forget that plans can vary significantly from company to company. Moreover, difference is based on age, gender, tobacco use, health and location. We have gathered for you some time saving short cuts and we hope that they can help you to save your time and money.

Individual health insurance premiums are registered and managed by the Colorado Division of Insurance and you will pay the exact same monthly premium for the same plan without reference to the seller. It is not important where you buy your health insurance plan whether it is a broker, an agent or the health insurance company.