What Are Some Consequences of Buying Inadequate Health Insurance?
Health insurance is a serious necessity for individuals and their families. However, some forget to study the basics of health insurance before negotiating a contract with a health insurance agent. Consumers may find themselves in a situation where:
- Their doctors are not in a participating network
- Their health is endangered
- Their finances are in trouble
Learning the basics of health insurance does not have to start with an insurance quote, however comparing insurance quotes and talking to experienced insurance agents has its advantages. The easiest way to compare quotes is to use our online quote form and get up to 5 quotes delivered directly to you. Before speaking to a health insurance agent, understanding what you need can help you ask the right questions, to get you the health insurance coverage that is right for you.
This health insurance guide is meant to assist you in:
- Gaining a better understanding of health insurance, so you better understand what you’re getting when comparing health insurance quotes
- Preventing future pitfalls from purchasing insufficient coverage because you were not equipped to discuss the details of your policy with an agent
What You Should Know Before You Buy Health Insurance
There are two types of health insurance:
- Indemnity Care – Allows you to choose your own doctor, hospital and other care providers and services and be reimbursed a percentage or maximum amount for health care service.
- Managed Care – Your health insurance arranges the doctors, hospitals and other care services for you. There are several services under this plan for your choosing:
- Health Maintenance Organization (HMO)
- Preferred Provider Organization (PPO)
- Point of Service (POS)
Your health insurance also includes:
- Physician Expense Insurance – Portion of your health insurance that pays the cost of doctor or hospital visits.
- Hospital Expense Insurance – Portion of your health insurance that pays the cost of hospitalization.
- Surgical Expense Insurance – Portion of your health insurance that pays surgical costs.
- Major Medical Insurance – Portion of your health insurance that protects against losses from catastrophic injury or illness.
You may be responsible for the following:
- Deductible – The amount you must pay towards your medical expenses before your insurance company pays. The higher the deductible, the lower your premiums and vice-versa.
- Co-Payment – The amount you will be required to pay each time you visit a doctor or other health care provider.
- Co-Insurance – The percentage of your medical bill that you will be responsible for after you have reached the applicable deductible.
As you are discussing policy options with your health insurance agent, the insurance company may offer other benefits such as:
- Preventive care
- Prescription drugs
- Vision care
- Dental care
- Maternity care
- Mental health benefits
Health Insurance Advice
This health insurance guide will help you develop questions about the right insurance coverage that fits your lifestyle. However, in addition to studying this guide to health insurance, you will also have to go beyond it for additional insight. Compare and contrast insurance companies for premiums you can afford. Remember that when in doubt, your insurance agent is there to answer any questions you may have about your health insurance coverage. Find a local insurance agent using our online quote form and compare up to five quotes from competing companies.
Published: Wednesday 11th March 2009
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