Health Insurance
Health insurance offers people financial protection and security against medical risks, including illnesses and accidents. While insurance doesn't prevent people from needing medical care, a good health insurance plan will cover medical expenses in an emergency, and can even prevent medical conditions because it can make preventative medical checkups affordable.
Health insurance is essentially a contract between you and an insurance company. You agree to pay a certain amount (or your employer agrees to pay for you), and your insurance company agrees to pay for certain medical services in the even of an illness, accident, or other emergency. Each health insurance plan has specific items that are covered and not covered, so it is important to carefully study the options and items in plans you are considering.
Many people receive health insurance through an employer, and many pay for their own medical insurance plans. Health insurance allows you to save money on doctor and emergency room visits as well as prescriptions. In most cases, your health insurance plan will specify a “co-pay” amount that you pay to the clinic or pharmacy, and your insurance plan will pay the rest, making medical care much easier to obtain for most families. Because health care is becoming more and more costly, a good health insurance plan can save you a lot of money in the long run. Not only that, but it is smart to be prepared in case of an emergency or unfortunate illness in your family.
Why Health Insurance Is Good For You
Having health insurance can give you peace of mind because you know that you can visit a doctor for a very low cost if you think you have a medical condition. People without health insurance are generally reluctant to visit a doctor because they must pay high medical bills up-front. Unfortunately, many people cannot afford their own health insurance. We recommend, that if at all possible you seek to obtain some sort of health insurance plan because it can cost you much less than paying for a surgery or expensive treatment out of your own pocket.
Most Common Types of Health Insurance Coverage
There are almost as many varieties of coverage plans as there are insurance companies, but most plans fall under one of three categories:
Indemnity Plans
These plans are essentially pay-for-service plans. With an indemnity plan you generally are allowed to choose your own health care providers for either a monthly premium or as an employment benefit. There are typically deductibles or co-payment stipulations with these plans (which means you pay a little bit every time you see a doctor or go to the hospital), and prescription drugs are often covered as well. One important feature that many indemnity plans have is an annual out-of-pocket limit, which means once you have paid a certain amount of your own money on health expenses in a given year, your insurance takes over and pays 100%. Varieties of indemnity plans include Flexible Spending Plans, Basic & Essential Plans, Health Savings Accounts, and High Deductible Health Plans, all of which have varying features as far as how much you pay and how much your insurance will pay for you.
Managed Care Plans
These plans differ from indemnity plans in that you are limited to a certain network of participating health care providers. In order for your insurance to cover your medical care, you must go to a physician in your network. Varieties of managed care plans include Health Maintenance Organizations, Point of Service plans, and Preferred Provider Organizations.
Government Sponsored Health Insurance
Those who have special circumstances and can qualify under federal standards may receive health care paid for by the government. These types of insurance are known as Medicaid (for people with low income), Medicare (for senior citizens and disabled persons), Military Health Care, and health insurance for American Indians.
5 Common Health Insurance Questions & Answers
Q. How do I tell if a health insurance company is good or not?
A. Most of all, you will have to read the plan thoroughly and ask questions. Things that can help are reviews from people who have used the company before, whether the company is accredited by the JCAHO or NCQA, and how many complaints are filed against the company every year. You can also ask a doctor what his or her experience with a certain health insurance company has been.
Q. What kind of deductible will I have?
A. This will depend on your policy. The higher the deductible, the cheaper your premiums. The lower the deductible, the higher your monthly fee.
Q. How do I pick a health insurance plan?
A. Ask yourself what services you are likely to use, and look for plans accordingly. Decide if you are going to ensure most of your medical expenses, or just large ones. Generally cheaper plans have higher deductibles, which means you only save money if you have a big expense, like an emergency surgery. Find out if doctors, hospitals, and pharmacies you would use are available in the plans you are considering.
Q. Do I need to tell my insurance company if I am going to have a baby?
A. Yes. Some insurance plans do not offer maternity coverage, while others do. You will need to find out immediately if your plan does so that you can plan accordingly.
Q. Can individual plans be better than employment-based plans?
A. Generally, health insurance provided by your employer will cost you less, since it is subsidized by your employer. However, if the plan offered by your work does not offer the coverage you want, it may be necessary to purchase your own private health insurance plan.
Conclusion
Health insurance is very important for every family. Having a good plan can save you from the financial pain which can only make a medical condition more stressful. Figure out what kind of health insurance coverage you are likely to need, how much you can afford, and what companies are a good match. For example, if you are newly married and plan on having children, an insurance plan with maternity coverage is probably a good idea. If you are in your sixties, you may not need maternity coverage, and can therefore obtain a lower premium on your coverage. Most of all, just be safe by making sure that you are protected with good insurance. You never know what could happen!
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