Although the cost of health insurance is continually rising, it is something that most individuals and families cannot afford to go without. So it’s important to understand the different types of health insurance that are available to you, so you can choose the right health insurance policy that fits your budget.
It’s important to learn the pros and cons of each type of health insurance, from managed care to indemnity plans, and the variances within each type. Understanding how health insurance policy rates vary, and what type of insurance is designed for each type of individual or family, and their needs is also important.
Whether you’re getting a new job and need to decide which type of insurance to choose from your employer, or are self-employed and seek coverage for you and your family, it’s smart to stay informed. This empowers you with confidence that you have the right health insurance coverage that offers the protection you need at a price you can afford.
Health insurance is necessary to keep you from falling into debt from an accident or an unexpected health problem. Health insurance is a contract between you and your insurance company. Understanding the difference between insurance plans and knowing what questions to ask will help you choose the right plan for you.
Health Insurance Catagories
There are two categories of health insurance. Basic and Major Medical are known as indemnity plans.
A basic plan usually includes the everyday costs of medical treatments; like hospital stays, surgeries and emergency treatment. In most instances, these plans pay one hundred percent of cost; however, there could be a payment limit. This leaves the individual to cover the balance.
Major Medical plans cover a broader range of services—including those incurred both in and out of the hospital. This plan usually covers hospital stays, surgeries, emergency treatment, prescriptions, x-rays, lab test, dental and mental health services. There could be deductibles and out of pocket expenses. The dollar limit of total payments is higher than a basic plan.
Managed Care Plans
Managed care plans such as Health Maintenance (HMOs), Preferred Provider Organizations (PPOs) and Points of Service (POS) generally provide a broad range of coverage. They involve an arrangement between the insurer and a selected network of healthcare providers.
Questions to ask Your Health Care provider:
When deciding which plan is best, you might want to ask the following questions.
- What copays, deductibles and coinsurance requirements apply?
- Can I choose my own healthcare provider?
- How do I check if my physician is covered under the plan?
- Does the plan cover my specific needs (specialist, vision, dialysis, chemotherapy, prescription drugs, dental, maternity)?
- Does the plan cover pre-existing conditionsor is there a waiting period?
- Are referrals required for additional services?
The best insurance plan is one that gives you the most benefits for the lowest cost, the greatest flexibility and fits your individual or family's needs.
Learn how easy and convenient shopping for health insurance can be. Get your free health insurance online quotes today!