Everything there is to learn about getting the best out of health insurance
Healthcare is an expensive commodity especially when you are living in the US. Whether you are a tourist, a student, or even a normal citizen, proper healthcare is not easy to afford.
This is because most of the hospitals and medical centers are privately-owned organizations. The government doesn’t have much control over these health centers to benefit the local population. However, there have been certain measures taken to make things much easier to access and afford. Such measures have received a mixed response in terms of improvements being made in the health sector.
A prime example could be of Obama care that has benefitted about 20 million Americans but at the same time has produced some unintentional consequences.
The dynamics keep on changing and as a consumer, it would be difficult for you to keep track of your medical coverage. You must know all about medical insurance essentials.
The guide will assist you in making tough medical and financial decisions by helping you understand how different health insurances work.
Understanding Health Insurance
Types of Plans
Here are the two basic types of health insurance plans you should be aware of:
Group Insurance Plans
In case of a group plan, an individual is bound to get more coverage for lesser expenditures.
Group plans are usually funded by a company, a worker’s committee, or a government agency which makes it a cheaper option to choose. The policies are decided within the organization and a person can be covered for services like dental care, eye treatments, and maternity care.
There are two types of group plans that you can consider:
Fully-Insured Group Plans
In this, the employer makes a deal with a particular insurance company to pay for all of your medical costs under a fixed maximum budget. The organization pays a premium amount to the insurer irrespective of what is spent.
You should know that a fully insured plan comes under state laws and the insurer undertakes all the legal technicalities that come under claims management.
Self-Funded Group Plans
In a self-funded setup, the company assumes responsibility for all your medical claims under a maximum risk budget. The amount isn’t fixed for a specific time-frame and can be further utilized if not spent fully on insurance costs.
An important thing to know here is that a self-funded plan automatically escapes state laws. This can be an advantage for your company to decide fully on what kind of coverage you will get.
Individual Insurance Plans
In this category, you will find lesser coverage and fewer benefits by paying more. When a person pursues an individual health insurance plan, he/she gets it from an open market.
It is based on a simple rule that is the more you spend, the more benefits you will get. Most individual plans cover areas like mental health, surgeries, emergency services, rehabilitation services, and so on.
Public vs Private Health Insurance
Most of the US population prefers private health insurance services as opposed to public health insurance. This is because of the incentives and services they are provided with. Another reason for this is the lack of proper explanations from government plans such as Obama care.
People are unaware of the benefits they could gain from such policies by paying almost half of what they usually pay. This is due to the widespread confusion and the lack of clarification on some of the incentives offered by such programs.
The Cost Technicalities
After deciding on the type of plan you want, it would be wise to learn about the type of cost terms in your insurance plan. Before moving on, you should know that the premium amount is excluded from any of these cost terms. The premium is similar to a fixed monthly rental that you pay to retain your health insurance membership.
Companies usually follow 3 common payment schemes that solely depend on the type of health insurance plan you have chosen. These include Co-pays, Deductibles, and Coinsurance.
To put it simply, these are cost-sharing methods that are mandatory for you to pay in any of your medical insurance plans.
What to do?
You must pay attention to the mentioned guidelines above. If you are familiar with the different terms and policies in case of healthcare insurance, you will easily find a suitable plan according to your age and financial brackets.