Health insurance basics

Health insurance industry is one of the most active industries around the world. Health insurance coverage provides you with the necessary financial assistance when you need medical treatment, by charging some premium.

Health insurances are in demand because many people are getting more conscious about their health and wellness. To get a health insurance is indeed a smart choice that you can make. Getting a health insurance is important, so when time comes that you or your family members get sick, you can acquire financial assistance from your health insurance provider.

Health insurance is an effective way to protect your family from the high cost of different medical services that you and your family might need during health emergency situations such as injury and sickness. To get health insurance is just like getting an auto insurance. You need to select a suitable plan that will meet your needs.

It is important that you understand well all the things about your health insurance. Your health insurance covers some policies that you need to understand, so that you can effectively and properly use your health insurance.

For your guidance, here are a few more things that you need to understand about your health insurance:

Health insurance plans are generally broken into two main types namely : managed care plans and indemnity plans.

Managed care plans ( e.g. HMO ), are the most widely used health care plans in America. This plan basically consists of a network of health care providers who provide their services at a discounted rate provided the participant use only the network. Under this plan, the insured has to follow certain predefined guidelines in order to avail the medical services. For example, one needs to have a primary care physical who provides the basic care and refers to the specialist if needed.

Indemnity plans (a.k.a. fee for service plans ) gives full freedom to choose your health care provider and visit pretty much any doctor or hospital of your choice without any referrals. Under this plan, you can get the medical care from your desired doctors without needing you to first select the primary care physician.

While selecting your health care provider you need to check how much co-payment or deductible does your health insurance requires to you to pay while availing the medical services. You also need to check if pre-authorizations are needed when you want to avail certain types of medical services or visit desired hospital facility.You also need to monitor and check your pre-existing health conditions. You need to update your health insurance every six month so that you can also update your health insurance plan.

Most health plans will require you to pay fixed amount every month as a premium.

Deductible refers to the health insurance payment that you pay each year before your health insurance company starts paying your covered medical services.

Copay refers to the fee that you pay when you receive other services or when you see your attending physician.

Out-of-pocket-maximum refers to the total health care expenses that you way during the whole duration of your health insurance plan.

Basic health and medical insurance is perfect for those people who cannot afford to avail expensive health insurance. Health insurances are considered as additional medical protection that you can acquire.

Almost 69% of Americans prefer to get at least basic health insurance. It’s really important to get at least the basic health insurance so that you can effectively acquire excellent additional medical protection for you and your family members when health issues like sickness and injuries happen.

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