All You’ll Ever Need to Know About Health Insurance
If you simply get health insurance without fully understanding the coverage, you could rack up tens of thousands of dollars in expenses when a medical crisis arises. Without a doubt, a health insurance is something every person should have but it’s also just as important to avail of the right coverage and to know what’s covered and what’s not.
As the market for freelancers and business owners increases, more and more people are buying their own health coverage. There are three ways for you to purchase an insurance policy. You can get it directly from the insurance company, an agent, or an insurance brokerage firm. All of them can be found on the Internet, making it easy for you to scout for the best rates and the most suitable coverage for you.
Your Health Plan Options
There are 4 options available for people seeking to buy health insurance. These are: HMO, PPO, POS, and FFS.
• HMO (Health Maintenance Organization) is a good option if you don’t want to spend a lot of money on your insurance. However, HMO limits your coverage to doctors and hospitals within the provider’s network.
• PPO (Preferred Provider Organization) offers more flexibility in your choice of doctors and hospitals and you can opt for in-network or out-of-network care. The downside to this is that it costs higher than HMO.
• POS (Point of Service) is an option for people who want to be able to choose their own doctors and hospitals, even if they are outside of the provider’s network.
• FFS (Fee for Service) is a plan that’s said to be the most flexible but needless to say, it is also the most expensive. FFS gives you the freedom to choose your own doctors and hospitals for specific health care services.
What’s Covered in Your Health Insurance?
It’s hard to get into the specifics since insurance policies vary, depending on the plan you avail. But below are some of the common inclusions in your health insurance:
1. Office/clinic visits: Most of the time, an insured individual will only be responsible for copayment/ coinsurance every time he or she visits the doctor
2. Hospital care: An insured individual will be responsible for copayment/ coinsurance when he or she is admitted to the hospital.
3. Emergency care: An insured individual will be responsible for copayment/ coinsurance when he or she needs emergency care in the hospital.
4. Outpatient surgery: Depending on the plan an individual has, he or she will be responsible for copayment/ coinsurance when undergoing outpatient surgery.
5. Other inclusions are: lab tests, Xray, prescription drugs, professional fees, and therapies. These may require copayment/ coinsurance.