The world of insurance can be confusing and sometimes it’s easier to just delay the decision. But you need to consider the fact that medical costs are getting dearer and dearer. Unfortunately, many people can identify with the situation where they’ve been caught unawares with a huge medical bill that causes a financial crisis. Don’t you want to be prepared if you suddenly find yourself or a family member with the expense of intensive dental care, a chronic illness, or an emergency operation? Being prepared means having health insurance.
Trying to decide what options available in health insurance are suitable for yourself or family can cause confusion and possibly a headache! So let’s make it a little easier for you to begin.
Maybe you’ve decided that the Government program Medicaid or, if you’re over 65, the Federal program Medicare, is all you need. The state decides if you are eligible for this health insurance, usually dependant on income. It is available for people with disabilities, pensioners and dependents. Under this program, you have very little choice in doctor, hospital, etc. Although the health care is usually sufficient, there may be long waiting lists.
If you want more insurance than the above, you must decide what you can afford to pay for your health insurance. Along with your financial limit, you must also decide what your requirements are. For example, are you looking primarily for something suited for one person, or for a couple, or a family? Do you need extras like dental care, physiotherapy and such like included, usually for extra costs? Do you want to be able to choose your own doctor if admitted to hospital? Do you have a particular hospital you would prefer to go to?
Types of Health Insurance:
Fee-for-service health insurance has two main parts: basic coverage and major medical. Basic coverage insures for short term expenses. When that is used up, major medical covers long-term expenses, which really protects you and your family against huge medical costs. This type of health cover is the most expensive as you are paying for medical cover regardless of how much health care is given.
Another health insurance type is through Health Maintenance Organizations (HMOs). For a paid monthly premium, the HMO will pay some of your medical costs depending on which plan you have chosen. They have lower premiums than other health plans but you don’t have the choice of a doctor or facility.
Preferred Provider Organizations (PPOs) are a group of doctors & hospitals that give medical services to specific groups. This means your favorite doctor must be part of this group for you to receive reimbursement.
Disability insurance covers lost income if you are unable to continue to work due to long-term illness or injury. Only working-age people need to consider this type.
If you require care for a long period then Long Term Care Insurance is designed to cover expenses.
Often a stay in hospital cannot be avoided and this is where it gets expensive if you don’t have health insurance. Hospital Indemnity Insurance will pay a preset amount for up to a certain number of days to cover costs.
The finer details of these types of insurance require research to match your needs with their services but this is important if you are to choose the best for you and/or your family. You need to have some idea of what you need to make an informed decision. There is a wealth of information online for you to read or you can talk to an insurance agent. Some plans are available online which you may choose to consider.
Summary:
Don’t get caught with unexpected medical costs. Having health insurance will protect you and your family so that you can have necessary treatments when you require them without the added financial strain.
