It is extremely important that you invest in health insurance. Medical bills stemming from a car accident or major surgeries can be a huge financial set back if you don’t have health insurance. Even if you have to spend quite a bit of money to buy a health insurance policy, it is in your best interests to take one out.
Types of plans
There are two kinds of health insurance – indemnity coverage and managed care. With indemnity coverage your insurance will cover illnesses and accidents but not preventive care, drugs or psychotherapy. Generally with this insurance you will be expected to pay a portion of the bill (20%) while the insurance will cover 80% of the charges. With managed care, co-payment charges are fixed. It covers preventive care, drugs and mental health care services. However, this policy allows insurance holders to avail services only from those doctors and health care providers that are recognized in the insurance company’s Preferred Provider Organization (PPO) network.
What to look for in a plan
Consider the benefits offered by the health insurance plan and check whether they are compatible with your needs. This includes coverage such as childcare, annual check-ups, maternity, immunization and more. Read conditions of the policy and procedures that must be followed to get reimbursed by the insurance company. Also take other costs into account when choosing a health insurance plan. Not many plans offer a standard coverage and their features vary depending on the coverage they offer. The best health insurance plan is one that covers a range of health services that you want.
When you have indemnity coverage and no medical expense overage, the only insurance related expenses will be the payments you make towards the insurance premium. If a policy holder has medical expenses covered in addition to paying premium for managed care coverage, the former will be covered through the premium. The only extra expenses incurred will be the standard co-payments.
It is important to understand the benefits that different health insurance policies offer. This can be done by first drawing up a list that enumerates all health services that your entire family uses. In each plan, assess what kind of coverage is given for each of these services. Depending on the coverage that is offered under different categories in each plan, you can select a suitable health insurance plan.