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So you are wondering why you need to know about Health Insurance policy if your employer already provides one. Well, consider this. Do you know that in spite of the Health insurance coverage that your employer gives, you have to pay, say first $1000 for your medical bills in emergency?
If your answer is no, then please read ahead. You are among the millions of Americans who are ignorant about the nitty-gritty of health insurance policies but still take them because everyone does! Well, if you do not want to add another woe in an already not-so-pleasant situation in the hospital, then here’s more about insuring your health but in a safer and smarter way.
What is a health insurance policy?
In technical terms, a health insurance policy is an agreement with an insurance company and an individual who pays the pre-decided premium every month and in turn the insurance company helps the individual with his huge medical bills.
The individual has to pay deductibles and copayment if he wants to claim the insurance. In layman terms, when you actually fall sick and would want your insurance company to help you out with your bills, you must have cleared the deductable, an amount fixed in your health insurance policy, before you can claim the money.
That is, suppose your health insurance policy has a deductibe of $500, then you should pay that amount before the insurance company starts paying the bills for you. Moreover, you also have to be a co-payer for the services they have given you. For example, you have to bear the night stay at the hospital if the insurance company is paying your bills. Not all cases talk about night stay charges though. It varies from policy to policy.This is a very simplistic idea of how a health insurance policy works. Indeed, when it comes to choosing a health insurance policy, you have two kinds of choices available.
The first one is fee-for-service, or indemnity plan. If you are among the ones who would like to choose their own doctor or hospital, then indemnity health insurance policy is cut for you. The fee-for-service health insurance policy provides a wide range of doctors and healthcare options.
This gives you the freedom to choose a healthcare provider of your choice. There is only one catch here. You can claim the insurance only after the bills are paid. If this is not the thing for you and money is your major constraint, then managed care health insurance policy is ideal for you.
They give insurance at reduced prices. However, they provide insurance coverage only if you get health care from the list of doctors or hospitals that they have provided you. Generally, this is a preferred one, thanks to the less paperwork involved here!
Why should I take them and why I should not!
Does falling ill scare you? Can you afford the unreasonably expensive health care bills? If it is yes, then you understand why you need health insurance policy. You need them simply because when you are on the bed physically weak, at least financial health is taken care of. Imagine, your recent accident cost you $ 3000 in medical bills. If you have an insurance that talks about 80% of copayment, then your frail shoulders have to take the burden of just $600. The rest will be paid by your health insurance policy! Now do you need any more reasons!!
However, imagine you are one of those lucky guys who hardly visit the doctor. In fact, you know a doctor only because he stays right next to your house and you play Tennis with him on weekends, then health insurance policies are a big waste of money. This is because if your total annual medical bills come to $200, what logic can justify your paying $400 every month as premium?
All said and done, health insurance policies have in fact acted as boon for all those unfortunate accidents that happen with us and our loved ones. In situations where our heart strings are stuck with our suffering dear ones, we don’t have to worry about our purse strings. They are taken care of by someone whom we have been paying every month for this day: your health insurance policy!
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