Find Out What Type of Health Insurance is Right for You
Sunday, December 2, 2007
If you're trying to select the right kind of health insurance for your needs, you may find it pretty confusing. There are many kinds of insurance these days, and you may need a little help to figure out which one is right for you. Learning what some of the types of insurance really are is a good first step in taking care of your health care needs, as well as that of your family.
Traditional Health Insurance
When you think of health insurance, this is probably the one that comes to mind. The insurance company charges you a premium each month, and then you are covered for almost every doctor's office visit or emergency treatment. Usually you still pay a co-pay or deductible amount, but the rest will be paid or repaid by the insurance company. Most of the other types of insurance are variations on this basic type of insurance.
PPOs: Preferred Provider Organizations
Preferred Provider Organizations are similar to traditional plans, as they also cover most of your medical expenses in the same way. However, they cost the insurance company less and therefore can have lower premiums. How? By limiting the network from health care facilities that you can go to and still be covered to those on a list provided by the health insurance company. If you need treatment from a type of physician not included in the network, you will have to pay the entire cost yourself.
POS Plans: Point-Of-Service Plans
A Point-Of-Service Plan is also similar to a PPO, but begin instead with a primary care provider. You must see your primary physician for any and all problems, and he will refer you to a specialist within the network that is covered by your plan. This adds an extra step to any doctor's visit. Again, you must pay to visit any doctor or hospital that is outside the network covered by your plan.
HMOs: Health Management Organizations
HMOs are sort of a combination of the Point-Of-Service and Preferred Provider plans; like the PPOs, you may only visit health service providers on a list given by your health insurance company, but you must also be referred by your primary physician first. While these can be very restrictive rules, many HMOs have very low monthly premiums, and some have no monthly premiums at all.
HSAs: Health Savings Accounts
Health Savings Accounts are a newer type of health insurance system put into place in 2003. They are not really a type of insurance plan, but a way of saving money to use for medical expenses in the future without having to pay taxes on the savings. They are best used in combination with another type of insurance, with the savings used to pay high deductibles.
If you're not sure what type of health insurance is right for you and your family, consider making an appointment to talk with a professional insurance advisor or broker, and do your research before committing to anything. Health insurance is a vital part of your life plan, and with a little exploration you can find a plan that suits your needs perfectly.
Labels: Health Insurance
Top 10 Health Insurance Questions and Answers
Tuesday, July 31, 2007
Got questions about health insurance? Here are the top 10 health insurance questions and answers:
1. What kinds of health insurance plans are there?
There are two basic types of health insurance plans - indemnity plans and managed health care plans. Indemnity plans let you choose your own physician, while managed health care plans - HMOs, PPOs, and POSs - assign you to a network of physicians and hospitals. Managed health care plans are less flexible, but much cheaper than indemnity plans.
2. What's an HMO?
With an HMO you pay a monthly premium for which you are assigned to a network of physicians, specialists, and hospitals who provide your medical care. A primary care physician oversees your care and you can only see physicians within your network. Prescriptions may completely covered or partially covered and generally require a co-payment of $5 to $10. This is the cheapest type of health insurance.
3. What's a PPO?
A PPO is similar to an HMO, but it allows you to visit non-network physicians without a referral from your primary care physician. You may have to pay for the non-network physicians fee, then get partial reimbursement from your PPO provider. Co-payments are generally $5 to $10, and this plan costs a little more than an HMO.
4. What's a POS?
A POS plan is a combination of an HMO and a POS plan. You choose a primary care physician within your network, but you can also see physicians outside the network. If your primary care physician refers you to an outside physician your POS provider picks up the costs. This is the most flexible and the most costly of the three managed health care plans.
5. What is a deductible?
A deductible is the amount you pay toward a claim before the insurance company pays.
6. What's coinsurance?
Coinsurance is the percentage of your medical expenses you have to pay after you pay your deductible.
7. What is a co-payment?
A co-payment is the amount you must pay when you visit a physician.
8. How do I choose a health insurance plan?
Ideally, you want to choose a plan that will give you the most amount of benefits for the least amount of money. If you want to continue seeing your current physician, find out what plans he or she is associated with. And if you have special medical needs, make sure the plan you choose will provide for those needs.
Other things to consider when choosing a health insurance plan are:
* What are the co-payments, deductibles, and coinsurances?
* Does the plan cover pre-existing conditions?
* What is the waiting period for pre-existing conditions?
* Will the insurance company give me good service?
9. Where can I get cheap health insurance?
Insurance premiums vary substantially from one company to another, so you want to get quotes from several companies in order to get the best price.
The quickest way to get quotes from different companies is to go to an insurance comparison website. Once there you'll fill out a short questionnaire, then receive your quotes. The best comparison sites only deal with A-rated insurance companies so you know you'll be getting a reputable company. They also have an insurance expert on call to answer your questions. (See link below.)
10. How do I know I'm getting a reliable health insurance company?
One of the best places to check out an insurance company is your state's department of insurance website. You can also visit J.D. Power & Associate's website (jdpower.com) to get consumer ratings on insurance companies, and A.M. Best's website (ambest.com) to get financial ratings.
Visit http://www.LowerRateQuotes.com/health-insurance.html or click on the following link to get cheap health insurance quotes from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section.
About the Author:
The author, Brian Stevens, is a former insurance agent and financial consultant who has written extensively on health insurance questions.
Labels: Health Insurance
