Health insurance is very helpful to cover the expenses that may arise due to illness, accident, injury, or any other diseases. Health insurance policies can be taken for all the family members together as a group policy, or you could go for individual plans.
Types of health insurance policy
As mentioned above, you can purchase health insurance for a group, or on individual basis. Group insurance is usually purchased by big companies for their employees. It will give them health benefits as long as they are employed. Business organizations like labor unions, federal societies, and cooperates go for such plans. Premium amount of the insurance will be paid by the company. Group insurance plans may vary from one provider to another. You as an employee can also seek the help from your union office or human resource department to understand complete details about the insurance coverage and to know about its benefits.
If you think your group health insurance does not cover your needs fully, or if you are self-employed, then you need to purchase individual protection coverage. This insurance can be tailored according to your needs and your medical condition.
You can also do a market study to get information about various health insurances, and compare the benefits as well as the prices offered by different companies. It is also important for you to read the terms and conditions stated by the insurers. If any of the terms are unclear, then it is important for you to approach the company and ask them to assist you with your concerns. Usually the medical expense for diagnosis and treatment is taken care of by your insurance company. They will either deposit the spent amount into your bank account, or pay the healthcare service provider directly.
Medical insurance plan
There are mainly two types of plans that are very helpful for reimbursements, and they are:
• Preferred Provider Organizations plans (PPO)
• Freedom of choice plan
PPO plans allows you to choose the hospital and doctor that you would prefer to be treated by. If you consult a doctor who is not a member of the preferred list, then the insurance policy only covers a minimum percentage of the cost. Some of the features of PPO plans are stop loss provisions and coinsurance. If this plan suits your particular needs, then you could go for it.
Freedom of choice plan allows the customer to choose their doctor & hospital for treatment. This policy is often mentioned as deductible, which means that you have to make the payment to the service provider, and later the insurer will reimburse the amount spent on your treatment. This amount paid by the company may vary from $100 to several thousand dollars. Higher the insurance amount, higher will be your premiums.
Benefits of health insurance
This insurance is particularly helpful to people such as active employee, retired employees, and disabled retirees. A wide range of insurance covers are available in the market to suit your needs. Based on the plan you choose, you get pre and post hospitalization coverage.
What does it covers?
• Network of treatment providers and good hospitals
• Offers direct settlement for the overall expenses
• Access to medical therapies
What it does not cover?
Health insurance does not cover cosmetic treatment, developmental problems, donor organs, experimental treatment, termination of pregnancy unless there is a threat to the mother, vasectomy, and if you are on artificial life maintenance. The insurance policy also does not cover up the travel cost for medical treatment such as air or road ambulance coverage.
Michael is a co-worker at Horton Shields and Knox. His practices include insurance coverage and he is mainly interested to help his customers by providing tips and guidelines. Thus, he made a habit of writing articles and he anytime can provide you Professional Indemnity Insurance Quote for your business.