What Are Some Drawbacks to Buying Insufficient Health Insurance?
Health insurance is necessary in order for people to afford health care. However, some people do not know anything about health insurance, which could lead to trouble when they are negotiating their policy with an insurance agent. There is a possibility of them endangering their health and finances, as well as not finding the right doctor in a participating health network.
People do not have to research health insurance the moment they receive their first quote from an agent. Instead, consumers should ask the right questions about their insurance coverage and follow these guidelines to receive the best coverage and service from insurance agents.
Know the difference between Indemnity Care and Managed Care
Indemnity Care allows patients to select their own hospital, physician and other care providers and services. With indemnity care, patients are reimbursed up to a percentage or maximum amount of medical costs.
However, managed care allows insurance companies to arrange doctors, hospitals and health care providers and services to patients. This is usually organized under three plans of patients' choosing:
" Health Maintenance Organization (HMO)
" Preferred Provider Organization (PPO)
" Point of Service (POS)
Know What The Insurer Is Responsible In Paying
There are four major expenses insurers cover:
" Physician Expense Insurance - Covers the expense of doctor or hospital visits.
" Hospital Expense Insurance - Covers the expense of hospitalization.
" Surgical Expense Insurance - Covers the expense of surgery.
" Major Medical Insurance - Protects losses from serious injury or great illness.
As part of the policy, patients are responsible for:
" Deductible - The cost a patient pays after service before the insurance company pays. Higher deductibles mean lower premiums and vice-versa
" Co-Payment - The cost required upon doctor or health care provider visits
" Coinsurance - The percentage of a medical bill required by the patient to pay after the applicable deductible.
Consumers should know that insurance agents should suggest additional health insurance coverage. These types of benefits include insurance on the following:
" Prescriptive drugs
" Maternity care
" Mental health
" Preventive care
More Advice About Health Insurance
Consumers should follow this guide for better health insurance and in finding the right health insurance agent. Normally, insurance companies should be able to tell them more than what is mentioned by this guide. However, it is a good idea for consumers to shop at different insurance agencies for the best coverage at affordable rates. Still, a health insurance agent can help them further if they ask them to.