Insurance has become one of the most lucrative businesses in today’s generation. Illnesses have become so common among people these days that it is advisable for everyone to go for health insurance. However, it is important that before committing to any such arrangement, people understand exactly what is health insurance. It is a protection for people from high medical care costs. Health insurance involves a contract between the concerned insurance company and you. in case of a health insurance, one buys a policy or plan and the company agrees to spend on your medical expenses as per the terms and conditions of the contract entered into.
In many nations, the employers offer a health insurance to their employees. In many cases, the employer bears the insurance premiums. One can also purchase health insurance plans on their own account. Also, people meeting certain criteria can opt for government health insurance. There are acts like the Affordable Care Act which give health insurance coverage to many in the country of United States of America.
Importance of health insurance:
It is inevitable to have a health insurance these days. It is important for many reasons. If you are uninsured you would receive less medical aid. It gives you an assurance about the fiscal burden to them and their families. Also, the benefits of getting a health insurance outweigh the premium expenses.
It is not that a person plans to fall ill or get sick, but most of us need medical care at some point in life. Health insurance covers these costs and provides many benefits as well. Some health insurance cover accident benefits too. They protect you from high as well as unexpected medical costs. Some free preventive care is also covered in the case of some companies offering health insurance services. They include vaccines, screenings, and also some checkups.
The facility of health insurance provides us with the help to meet our medical expenses without any sort of major hole in your pocket. Since the past times hospitalization is becoming increasingly costly day by day. It thus becomes important to manage these expenses, if not able to curb them completely. The facility of health insurance gives us just that.
Types of health insurance:
There are several ways to cover yourself using a health insurance. Some of them are –
- Preferred provider organization health insurance plan –
This plan includes a network of preferred hospitals and doctors. They are contracted to provide services for a fixed rate usually discounted depending on the members. You have the choice to see any specialist within the network of the plan. You are usually required to pay an annual premium to the insurance company before your insurance coverage begins.
- Health maintenance organization health insurance plan –
With this plan one has a low premium to shell out but with this there are less options for one regarding the hospitals and doctors as well. A general physician would be allotted to you of your choice. If need be to visit a specialist, you would need the approval of the physician. This plan provides lower premiums and good preventive services like checkup and immunization.
- Health savings account health insurance plan –
It is not a health insurance plan as such but it is a tax favored savings account. It is generally less expensive. Unused funds in this account turn out to be tax and interest free. Also, the funds in this account can be used for purposes other than health, but for that one would have to incur penalties and interest.
- Point of service health insurance plan –
It combines the first two plans. It requires you to choose your preferred physician but also are free to choose for a physician from outside the network of the company. But of you choose the latter option, you would be subject to a deductible and also would get a lower level of coverage. If you need flexibility in choosing a physician this plan is better than others.
- Exclusive provider organization health insurance plan –
They are similar to health maintenance organizations as they too have a network of physicians to choose from except in cases of emergency. It would be a good option if you can afford to pay a higher cost for unplanned events.
- Indemnity health insurance plan –
They are also known as fee for service plans. They have a predetermined amount or a predetermined percentage of medical expenses paid to the member entitled to receive the payment. It is a good plan if you want high flexibility in selecting hospitals and doctors.
Selection of health insurance plans:
One should opt to choose the most appropriate plan for themselves. They should decide on various criteria like the amount of coverage expected and received, the premium amount and also the premium frequency, the types of medical expenses covered.
One should also consider the age of the person aiming to get a health insurance for themselves. Also care should be taken to take a health insurance early so that maximum coverage can be received. The seriousness of the diseases should also form a major decision making factor for selecting a suitable health insurance plan. One should focus on all the aspects covered in the contract of health insurance. Care should be taken to select an appropriate company offering health insurance services.
It is extremely important that everyone has a health insurance done. Life is uncertain and thus one is prey to fall ill at any moment. Also, the number of patients suffering from chronic diseases like cancer, etc. are on a rise. This makes it even more important for all to get a health insurance done. It becomes almost impossible to meet the heavy medical expenses in case of any major accidents.
Health insurance comes to your rescue at such times also. One should however carefully study their requirements and the facilities offered by the health insurance company and only then decide as to the best plan for themselves and their families.