Health Insurance 101
In today's world, health insurance is really a necessity. With medical costs going through the roof paying for them could be a challenge. Affordable health coverage is available; it just depends on how many of the little extra's you can live without. One of the best answer's to affordable health coverage today is in the individual market. You can tailor your health coverage to fit your own needs and not the needs of a large group. As an example why would you pay a premium for prescription drugs when you are not taking any? The same as paying for maternity benefits when having more children is out of the question. Everyone needs to think very carefully today about what they really need in health care coverage.
What types of health care insurance are available?
Most insurance plans fall into one of two categories: indemnity plans and managed care plans.
- An indemnity plan allows you to choose your own doctors and pays for your medical expenses either completely or up to a specified amount per day for a specified number of days.
- A managed care plan usually provides broader coverage, but always has an arrangement between the insurer and a selected network of health care providers.
What will my cost be?
In addition to monthly premiums, you may have other out-of-pocket costs. These costs can add up, especially if you have children who visit the doctor frequently. Check out all the costs before deciding.
- Co-payment- the amount you have to pay usually capped at a certain level.
- Deductibles- the amounts you have to pay before most insurance companies begin to pay claims.
- Coinsurance- the percentage of your medical costs you will have to pay after you reach any deductibles that apply.
The best plan for you is the one that gives you the flexibility you need and the most benefits for the lowest cost. Since there is no such thing as a standard health insurance plan, you are the one designing the plan to fit your needs. Make sure you consider:
· Co-pays, deductibles, coinsurance amounts.
· Freedom to choose providers. Are your providers in the network?
· Coverage for my needs.
· What about pre-existing conditions? Is there a waiting period?
· Make sure the insurance company has a good reputation in the industry.
