Health insurance policies can be tricky to navigate, especially if you don’t understand all the terminology involved in them. Depending on your income level and medical needs, you may qualify for certain programs and discounts that allow you to afford better coverage than others. This guide will take you through the basics of health insurance policies in the USA so that you can make more informed decisions about which policy is best for you and your family.
Why do you need health insurance?
Health insurance, or health care insurance, is a form of insurance that pays for medical expenses. It can take several forms: health coverage through an employer or labor union offered as a benefit to employees; health coverage purchased directly by an individual, and government programs providing health benefits.
Types of health plans
PPOs are among several types of health insurance policies. The acronym PPO stands for Preferred Provider Organization, but these plans can also be called Indemnity plans. A PPO plan requires you to use a preferred doctor within an HMO network, but you’re free to seek care elsewhere if there’s no in-network provider available to treat your condition or if your provider can’t see you within a specified time frame. PPOs allow unlimited out-of-pocket costs; once you hit your deductible and out-of-pocket maximums, coverage kicks in and all care is 100% covered by insurance.
What type of Health policy is best for you depends on your needs
It’s a lot like trying to figure out what type of car to get. The decision comes down to two questions: First, how much can you afford to spend every month, and second, what features are most important to you? There are four types of health insurance plans that cover inpatient hospital care, outpatient care, and sometimes even prescription drugs or behavioral health services. We’ll walk you through each plan so you can find one that’s right for your needs. (CNN)
How much does health coverage cost?
If you have health insurance through your employer, it’s likely that a portion of your paycheck goes to pay for it. However, if you are self-employed or have to buy coverage on your own, those expenses can mount up quickly. To calculate how much you’ll pay for health coverage, add up both premiums and out-of-pocket costs based on what kind of policy you choose. For example, a Bronze plan will typically cost more in monthly premiums than an HMO plan—but less out of pocket when it comes time to visit a doctor or fill a prescription. If money is tight and preventive care is important to you, look into PPOs with lower deductibles and co-pays.
An Affordable Premium = An Affordable Deductible + an Affordable Monthly Payment
Choosing a health insurance policy starts with figuring out how much you can afford to pay for it. If you are working on a tight budget, be sure to consider every aspect of your monthly payments. Look beyond just your monthly premium payment, and take into account deductibles, co-pays and co-insurance payments. Take these factors into consideration when comparing health insurance policies in order to avoid paying more than you should at claim time. Also keep in mind that when choosing an affordable premium it may mean that certain services or procedures won’t be covered or will come with high cost-sharing amounts so only go with a plan that will cover what you need if there are other plans available that fit your budget but have lower premiums, make sure to investigate them as well.
There are various options to choose from and a number of factors to keep in mind when selecting your health insurance policy. To find out which one will suit you best, take into account your unique set of circumstances and needs. For instance, if you’re a senior citizen, you may be eligible for Medicare; if you or your dependents are prone to illness or injury, then catastrophic coverage might be right up your alley.