Types of Health Insurance You Need
Health insurance is an insurance which covers a certain portion or all of the risk on a person spreading the risk amongst a number of other persons, by paying a premium for the insurance. Health insurance companies can be classified in two broad categories those that provide health insurance themselves and those which have contracted with an agent group to sell the insurance. These companies may be brokers or affiliates of each other or may be independent. Either way they are still bound by federal and state laws to provide reasonable rates and coverage for their customers.
The types of health insurance coverage available are comprehensive (the most traditional), limited-benefit, hospital, skilled nursing facility, health maintenance organization, short-term health insurance coverage, critical illness plans, disability income protection plans, employer-based health plans, COBRA (Consolidated Omnibus Budget Reconciliation Act) approved plans, disability insurance and supplemental protection insurance. All these plans vary in coverage, premium amounts, and duration of contracts. Health insurance premiums are determined by your health and age, as well as your lifestyle and driving record. There are two basic categories of health insurance policies health maintenance organizations (HMOs), which require you to choose a primary care physician within their network; and preferred provider organizations (PPOs), which allow you to choose a physician outside of their network. These two basic types of insurance policies are usually classified according to their membership, whether you pay a premium on a monthly, quarterly, or annual basis, and whether or not you have deductibles.
Major medical insurance plans to cover catastrophic medical emergencies only, and require you to meet deductibles and co-pays. You are not allowed to choose your own physician. Major medical insurance plans are usually very comprehensive. In addition, you are also covered for emergency room visits, procedures or surgeries, and other services not excluded from basic health care policies. While this plan does not usually cover maternity benefits, it does provide coverage for mental health and dental services.
Another type of insurance plan is the indemnity plan, also called HMO. In an HMO, you are required to choose one primary care physician and usually need to use a specific hospital in their network. Most of the time, there are also guidelines as to what hospitals you can use, although you are not under any obligation to use them. This type of coverage has fewer restrictions than most other health plans, such as deductibles, premiums, and doctors who participate in the plan. These HMO plans typically cover services up to the maximum out-of-pocket expenses.
PPO plans are less restrictive than HMOs and POS plans. For example, you don’t have to choose your physician and often times, there aren’t any deductibles. Your premiums are paid through a monthly paycheck, and you may choose a doctor out of the network if you want, but most of the time, you are forced to choose a physician within the network.
An additional type of health care plan is the catastrophic health care plan (CHP). If you become ill or injured and don’t have access to any insurance at all, the CHP will cover the cost of your medical care up to a point. Depending on the plan, this point may be set at $1k or sometimes even less. You will need to pay premiums every month until you reach this point, after which you will be covered completely by your insurance.
The last type of medical insurance is the so-called risk pool. The risk pool essentially provides medical benefits to small businesses that have high expenses for medical expenses. For instance, if a business has employees that are prone to serious injuries, accidents, or ailments, the insurer will take into account these risks when deciding how much to charge the employee for premiums. As long as the insurer covers a certain percentage of these risks, the business won’t be eligible for discounts or higher premiums from the health system.
There are many other types of insurance plans that you can apply for. Before you make a decision, you need to be aware of the different rates, deductibles, coverage, and restrictions, so that you know what you will need to pay. Once you know what you need to pay, you can go about finding a policy that best suits your needs. To find a full coverage plan, you will first need to do some research so that you can find an insurer that offers high quality health care services at a price you can afford.