Health insurance is one of the aspects of our life which many consider as an aspect of high importance and they are completely right. Buying health insurance is an act of self-care, ruled by the voice of the reason, as everything can happen with you and yours and health insurance brings you confidence you’ll be able to cover all needed medical expenses.
There are several types of health insurance policies and each of them gives you a certain set of benefits. So, here are some explanatory keys to help you create a perfect health plan. Get an excellent explanation of “Obamacare” and the mechanism of how it works.
Generally speaking, there are 4 main types of health insurance (we are talking about the USA).
- PPO Health Insurance Plans.
It stands for Preferred Provider Organization and considers as the most popular type of health insurances which is usually used by corporations for their employees. In a case of medical issue, the policyholder must get treatment from one of the (preferred) doctors listed in the policy.
- HSA-Qualified Health Insurance Plans
HSA stands for Health Savings Accounts, so this an Insurance type, which lets a holder save pre-tax money to use them later for medical needs in the future.
- HMP Health Insurance Plans
This type of Insurance connects a policyholder with the Health Maintenance Organization and a policyholder will be offered to choose medical services from a large network of medical specialists and hospitals cooperating with the HMO.
- Indemnity Health Insurance Plans
This type of insurance implies that a policyholder may receive medical treatment from any preferred hospital or doctor, where insurance company covers the certain part of expenses. Unlike with any other type of insurances, a policyholder of Indemnity Health Insurance may be asked to pay upfront for definite services. Later, they can apply for reimbursement.
Standard health insurance policy does not cover your dental procedures, so you will need to get a separate dental insurance policy. Find out about dental insurance here https://www.uhc.com/individual-and-family/dental-insurance.
Here is the simple explanation of the terms you need to know before you’ll read offers from insurance companies:
This is your monthly payments for having an insurance. Premiums depend on the type of a policy, but the higher premiums you’ve chosen to pay, the lesser amount of out-of-pocket money (means your own money) you will have to pay for medical treatment. The higher premiums are better if you anticipate you will need medical services quite often. In case you have strong health and you visit doctors rarely, the lower premiums are a smarter choice.
Coinsurance is simply a share of medical service costs. In your policy, you will have a list of medical services types, which are under the coinsurance.
Copay means you will pay a certain percentage (fixed amount of money) of the services’ cost which was covered by your insurance policy.
Deductible is the money you pay yearly and it’s the amount of covered out-of-pocket costs. In short – you define what amount of money you are willing to pay yourself for medical treatment, before the coinsurance start working and it will pay for everything which is above your deductible amount.
This is a maximum amount of money you will pay for medical treatment before your insurance company pays the covered costs fully.
It’s the maximum amount which your insurance company will pay for your medical treatment. Whatever the case, if your treatment’s cost exceeds the “Dollar Limit”, you will have to pay the rest of the money from your own pocket. The higher your “Dollar Limit”, the bigger the premiums.
Health insurance is often bought with a life insurance policy, where you’ll have to pay a certain amount of premiums in exchange for confidence your family will not get financially drained in case they will lose you. Here you will find an excellent explanation of life insurance benefits.
Unlike the life insurance, health insurance is obligatory in the majority of countries.