| Health insurance. Everyone needs it, but not | | | | you to pay any or all of the following:o |
| everyone has it. And with medical expenses on | | | | Co-payment - The amount paid for each visit |
| a seemingly endless rise, paying | | | | to a health insurance provider. This is |
| out-of-pocket for them could land you in the | | | | generally required by HMOs.o Deductible |
| poor house. So when choosing a health | | | | -The amount paid toward your medical |
| insurance plan, it's good to know the basics | | | | expenses, most probably annually, before the |
| to help you make better, more financially | | | | insurance company pays any claims. This is |
| sound choices when selecting a plan. | | | | generally required by indemnity plans.o |
| | | | Coinsurance - The percentage of your medical |
| Health insurance plans generally fall into | | | | costs paid after reaching any applied |
| one of three categories: indemnity plans, | | | | deductibles. |
| also known as reimbursement plans, preferred | | | | |
| provider plans (PPOs), and managed care plans | | | | Now that you've established the why and what |
| (HMOs). | | | | of health insurance, you need to find out |
| | | | where you can get it. Health insurance can be |
| An indemnity plan allows you to choose your | | | | acquired through a group plan at work or |
| own doctors and it completely pays for your | | | | through a group affiliation, such as a |
| medical expenses, either in full or according | | | | school, a club, association, etc. Or you can |
| to a schedule of benefits. The schedule of | | | | purchase an individual plan. When buying an |
| benefits may be substantially less than your | | | | individual health insurance plan, you can |
| actual costs. Preferred provider plans and | | | | most probably customize it for your |
| managed care plans can provide broader | | | | particular needs. If you're looking for an |
| coverage, but they involve an arrangement | | | | individual plan, start by going online to |
| between the insurer and a specified network | | | | compare coverages and rates from a number of |
| of health-care providers. In addition, | | | | companies to find the best plan and rate that |
| managed care plans require pre-approval of | | | | meets your needs. |
| many health care services. For example, an | | | | |
| HMO may require that a primary care physician | | | | You now know the what's, why's and where's of |
| in its network coordinate all of your care as | | | | the health insurance game. Your next step is |
| well as refer you to specialists that belong | | | | to select the best health insurance plan that |
| exclusively to the network. | | | | meets your needs. You should select one that |
| | | | gives you the greatest flexibility and the |
| No matter which kind of health insurance you | | | | best benefits for the lowest cost. Since this |
| buy, make sure it provides you with the right | | | | is a major purchase, you should shop around |
| kinds of coverage. And when it comes to | | | | and get several quotes before choosing a |
| coverage, a good health insurance plan should | | | | plan. But before you dive in, here are a few |
| offer several types. For example, hospital | | | | things to consider: |
| expense insurance pays room and board as well | | | | |
| as incidental services costs if you're | | | | 1. Co-pays, deductibles, and coinsurance |
| hospitalized. A surgical expense insurance | | | | requirements, which ones apply? |
| covers surgeons' fees and all other related | | | | |
| costs. A physicians' expense insurance policy | | | | 2. Do you have the freedom to choose your own |
| pays for visits to a doctor's office or when | | | | health-care providers? |
| a doctor's visits you in the hospital. | | | | |
| Finally, major medical insurance offers very | | | | 3. Does the plan you're considering cover the |
| broad coverage with an extremely high maximum | | | | health services you need? |
| benefit that's designed to protect you | | | | |
| against losses due to serious illness or | | | | 4. Does the plan you're considering work with |
| injury. | | | | the health-care providers you're currently |
| | | | using? |
| So what might be covered in a health | | | | |
| insurance plan? When comparing plans, make | | | | 5. Does the plan you're considering offer |
| sure they provide additional benefits that | | | | family, and individual, coverage? |
| you may need, including:o Prescription | | | | |
| drugso Preventive careo Mental | | | | 6. Does the plan you're considering cover |
| health benefitso Maternity careo | | | | pre-existing conditions? If so, is there a |
| Vision care | | | | waiting period? FYI - The average waiting |
| | | | period can be three months to one year. |
| And what can all this cost? In addition to | | | | |
| the monthly premium expense, there may be | | | | 7. Does the insurance company you're |
| other out-of-pocket expenses that can really | | | | considering have a good reputation and a |
| add up, especially if you have children or | | | | positive rating from a major ratings |
| other family members who make frequent visits | | | | organization? For more information, contact |
| a doctor. You should check to see if the | | | | your state's department of insurance. |
| health insurance plan you're considering asks | | | | |