Health Insurance

 

 

Health Insurance: Plans for Secured Healthcare

For every person health is precious and we do all sorts of things to keep ourselves healthy. We know how it feels to fall sick and if it is something serious, how expensive treatment can be incurred. for which we are able to afford the right treatment and do not worry about the costs getting health insurance is a good idea.

The rising cost of treatment is a matter of worry for lot of us. If we have health insurance policy, it helps us to plan ahead and also save for future treatment costs. We need not have to worry about bearing the expenses from our pockets. Your need for insurance may be different from the needs of others. Hence, there are different health insurance plans to suit different needs.

Health Insurance Plans :Health insurance plans are primarily of 2 types

 

Indemnity Plans (fee-for-service)
According to this plan, the insurance holder can choose the doctor he wants to be examined by. The doctor/medical professional receives a fee-for-service. This claim is made either by the doctor or the patient himself. Indemnity health insurance has several other types. 


Indemnity health plans: As a policy holder you may go to any doctor, hospital or any other medical provider for a fixed monthly premium. You may choose the health care provider you want and the plan will reimburse you or your doctor for the service rendered. There may be a certain portion of deductible that you need to pay or simply bear a portion of the fee. Certain expensive services or hospital care or any covered services may require you to have prior authorization for them in order to be covered. To know if indemnity plans are better than HMOs or PPOs click here.

 

Flexible spending plans: This is also known as cafeteria plan and is sponsored by the employer allowing the employees to design their own package. There are several benefits for this plan like pre-tax conversion plan, multiple option pre-tax conversion plan, flexible spending accounts, medical plan and employer credit cafeteria plans. Basic health plan: This is a low cost health insurance plan that provides limited benefits. These plans do not cover certain basic treatments and it is advisable that you should go through the policy document before purchasing.

 

Premiums for such affordable health insurance plans are community rated and are based on gender, age, occupation, geographic location or health status. Health Savings Accounts (HSA): This plan is designed to help you pay for your present health treatment costs and also save for future costs on a tax-free basis. You do not have to pay a premium here. Instead this tax-free account covers your out-of-pocket medical expenditure. What types of investment you should make, which third party or insurer you should rely on is completely your own decision. Generally, HSA requires you to buy a High Deductible Health Plan too. High deductible health plan (HDHP): This inexpensive health plan is active only after a high deductible of a minimum $1000 is paid for an individual or $2000 is paid for a family. Managed Care Plan Managed care helps minimize unnecessary costs for healthcare. The policy holders receive extensive medical coverage while also giving financial incentives to the policy holders who opt for the medical providers listed in the policy. There are several types of managed care: Health Maintenance Organization (HMO): There is an already existing network of participating physicians, hospitals as well as other health care professionals and facilities that you can choose from.  

 

The doctor you choose from the given list will then provide you with the required health treatment. If you need to go to a specialist your primary care doctor will refer. Generally there is a fee or a co-payment that you need to pay in HMP plan. Your out-of-pocket are fewer here. Point-of-service (POS): In this plan the primary care doctors usually have the freedom to refer other medical providers listed in the plan. If the referral is not from amongst the listed doctors, it will still be covered but then you need to pay a certain co-insurance. If the doctor is listed in the plan, then the plan provides coverage for the same. Preferred Provider Organization (PPO) : In this plan the listed doctors, hospitals and health care providers are paid by the insuring company. Often these payments are discounted and hence the costs will be lower if you choose a doctor from the network of doctors provided by the insurer. However, you may still go for a doctor outside the network but you will have to pay the difference between the medical provider's fees and what the plan pays. Tips to buy affordable health insurance: The premiums for medical insurance seem to be increasing every year.

 

This leaves us with the question that how can we find affordable health insurance coverage that suits our pocket. It may seem very difficult but with a little research we can still look for a suitable health insurance plan. You may follow the 7 easy steps to choose a health policy that suits your needs and also one that matches your pocket. Be aware of your state rules: Know the rules that your state follows. This way you can make rational and mature decisions about your health insurance. Pay special attention to rules about pre-existing conditions (if any) and also about what coverage you will get. Type of coverage: Knowing what type of health insurance coverage you need is important. You may need short term health insurance policy or a regular one depending on the status of your job and your family planning. Getting a cheap health insurance policy may not be the solution to all your problems. You will have to keep in mind the requirement that you have. How much you can afford: Prepare a budget for yourself. Buying health insurance doesn't just mean paying premiums.

 

There are co-payments, deductibles and also sometimes co-insurance. Keep all of these in mind when planning for your insurance. Comparison of your options: To be able to find an affordable health insurance you must have an idea of all what is available in the market. After you have shopped enough get hold of a broker who can help you in comparing the policies. A comparison between few different companies and their products will help you settle better with a policy. Insurance homework: You need to be acquainted with the jargons of the industry if you must find yourself a policy that suits you best. Do your homework; get your research done properly to be able to buy a suitable policy. Tips: While doing the paper works you may have to answer a lot of questions. Do not be tempted to lie. This will only create problems in the future for you.