Health insurances are designed to protect you and your family from high healthcare costs.
Health insurances are normally offered by the government or private companies but most individuals obtain coverage through their employer. Policies are usually renewable monthly or annually, and will typically cover a pre-determined array of service and procedures, and usually prescription drugs as well.
Are Health Insurances Really Necessary?
Say you’re in peak condition; you’re never sick and rarely get hurt. You probably are thinking, “Is it necessary to consider different health insurances if there is nothing wrong with me?”
Think about the following:
* High healthcare costs make health insurances necessary to lessen the expense should an emergency happen to you.
* Health insurances guarantee you will not be declined treatment or required to pay upfront before services are rendered.
* Being uninsured makes it more likely you’ll ignore problems, which later on can lead to costly trips to the emergency room.
* Not seriously considering health insurances means you face the prospect of towering medical bills.
* Being uninsured means you’re less likely to be able to provide your children with the benefit of regular healthcare services.
What you should look for in health insurances:
There a few things you should keep in mind when shopping for various health insurances.
* Every provider is going to have different plans to suit different people with different needs. Knowing more about an insurance company will help you know what kind of services they provide.
* Narrow health insurances down to a few choices then compare all products side-by-side. Not all health insurances are the same, particularly among different companies.
Private Health Insurances
The following are the most common types of private health insurances:
A Health Maintenance Organization (HMO) is one of the more affordable health insurances. HMOs usually have an extensive network of doctors, specialists, hospitals, and clinics, plus many more. HMO networks often encompass a wide and varying range of healthcare professionals so you’ll have convenient access to all your healthcare needs.
Health insurances may also appear as Preferred Provider Organization (PPO) plans, which have the added bonus of being able to pick any doctor or specialist you want to see. PPOs cost more but are still affordable and provide comprehensive healthcare coverage with virtually unlimited options.
A Health Savings Account (HSA) is typically combined with a high-deductible policy to protect a person from soaring medical bills should catastrophe strike. You will also face lower premiums and the HSA is a tax-free savings account that can be used to pay for routine trips to the doctor, prescription drugs costs – not to mention your deductible if necessary.
Fee for Service (FFS) plans work like traditional health insurances – you seek the care you need, pay for it, and are then reimbursed for a pre-determined percentage
When considering health insurances, you should understand the following terms:
* Out-of-pocket expenses are any amounts the insured must pay themselves.
* Out-of-pocket maximum is how much out-of-pocket expense the insured must pay before the insurer is required to pay the rest.
* The amount you pay out-of-pocket before health insurances cover a service or procedure is a co-pay or co-payment.
* Coinsurance is where the insured pays a percentage of the total cost.
* Coverage limit is the absolute maximum health insurances will pay before the rest is the insured’s responsibility.
* A premium is the monthly or quarterly amount paid for health insurances.
* You will usually have a deductible. That is the amount you will have to pay before your plan pays the rest.
* Health insurances usually have exclusions, which mean that a service or procedure is not covered. The insured is responsible for paying for it out-of-pocket.
* Explanation of Benefits or (EOB) is a document health insurances prepare to explain exactly what services they cover and how much they are covering.
* Prior authorizations are reimbursements health insurances agree to pay for a procedure before it is performed.
Now that you know more about health insurances, you can start to shop for them. InsuranceUSA.com provides a fantastic array of information to help you decide which types of health insurances may be right for you. Of course, you can request a free quote at any time.