Health insurance, also called medical insurance, is a form of insurance dedicated to providing coverage for medical, dental, prescription, and even dental procedures. Health insurance will normally reimburse the insured for medical expenses from injury or illness, or simply cover the expense to the health care provider. People may find themselves in need of health insurance at some point in their lives, as health conditions are always changing. It would be wise to consider purchasing health insurance early in life, especially if it is likely that an individual will be in need of medical treatment at some point. Health insurance rates have decreased significantly in recent years, and insurance buyers now have a great amount of leverage when shopping for insurance.
There are a variety of health insurance plans available on the market today. Most basic health insurance plans focus on covering the major medical expenses that are incurred during hospital stays. These plans are usually more costly than some of the more popular types of plans, but are necessary to provide financial protection for families and individuals. Some basic health insurance plans may also cover preventive care and elective procedures. For people who purchase such plans, they may be subject to a deductible which needs to be paid before the insurance begins to pay for the individual’s medical expenses.
Some of the most popular types of health insurance are catastrophic. This plan requires higher out-of-pocket premiums than other types of plans, but provides coverage in the event of major illness or hospitalization. A catastrophic health insurance plan can be configured to include a high deductible. The deductible is the amount that an individual must pay out of pocket before the insurance begins to pay for medical expenses. In addition to being high out-of-pocket, a high deductible could result in significant savings, particularly if the individual were to make a major illness diagnosis.
Another type of health insurance plan is managed care insurance plans. This type requires an upfront investment by the policyholder and allows the policyholder to choose providers who are approved through a particular network. Policyholders must pay a co-payment each time they visit a doctor. However, they are not required to pay the full amount at one time. If the policyholder visits a doctor that is not in their network, they will receive a bill for the difference. Policyholders must pay an additional premium if they want to receive care from doctors outside of the network and must pay for out-of-network doctors as well.
Another popular type of health insurance plan is catastrophic. It requires very little out-of-pocket expense; however, policyholders may only be able to receive care through hospitals in their home state. Policyholders may not receive care from out-of-network providers. If a policyholder is hospitalized and has to stay in the hospital for a period of time, they could be eligible for a percentage of their overall costs (based on how much they earn), or a flat rate fee to be covered by a network. As with an HMO and PPO, there is a key question that each health insurance company asks policyholders: whether they want a network or preferred provider.
When a person is diagnosed with an illness, it can be a devastating experience. People need health insurance policy coverage to provide coverage in the event of major illnesses and medical emergencies. Understanding the types of plans that are available and the ways that they work can help someone make the right decision on the type of illness that they need coverage for. If a person does their research and knows what they need from their health insurance policy, they will be able to find a policy that will offer everything that they need and deserve.