Today's health insurance market is broken into many segments. Some are highly specialized in their coverage and others are more comprehensive. The more comprehensive and inclusive the health insurance the higher the premiums.
It is generally in your best interest to purchase group coverage (through an employer) when available. Group coverage is generally more comprehensive and group rates are generally lower because their is strength in numbers. However, group plans are almost always managed care programs and have lots of restrictions.
If group coverage is not available then you will have to purchase an individual plan. Individual plans are medically underwritten and there are no guarantees that an insurer will approve your application. Premiums for individual policy holders are more in line with their expected health care cost than in group coverage. That means, the premiums will be higher for those who are older or less healthy.
Health Insurance "Short-Term"
As its name implies, short-term health insurance is temporary coverage and lasts from one to six months. Some companies may allow the insured to renew the policy one time but the total length of coverage will not exceed twelve months. This is perfect for someone who just dropped off their parents' policy because they graduated from college or maybe they hit that age limit and need health insurance before they find a full-time job. Or maybe for somebody between jobs.
Coverage is generally comparable to that of an HMO or similar plan and typically includes various hospital charges, office visits, diagnostic tests, and prescription drugs. Maternity costs are not covered, however. Unlike an HMO or PPO, though, a short-term plan is an indemnity plan, which means you have the freedom to go to any doctor; you're not confined to a network of doctors.
Plans are typically offered with a number of deductibles ranging from $200 to $2,000. Most young adults choose the $500 deductible or the $250 deductible. Older adults generally choose higher deductibles to offset their higher premiums.
The down side of short-term policies
In many short-term policies the deductible you pay is per injury or illness. That means you must meet the deductible all over again each time you are treated for a ear infection or other illness. After you meet the deductible, the company pays 80 percent of the next $5,000 in expenses and then pays 100 percent.
Short-term policies also have certain strict eligibility requirements, although they will vary from insurer to insurer. If you have ever been denied health insurance, you won't be eligible for short-term insurance because a denial indicates you might have significant health problems. In addition, if you have a pre-existing condition (an illness or chronic condition you've had within the previous five years), it won't be covered under most short-term plans. That means if you've had leukemia, a stroke, or even allergies or asthma within the last five years, those illnesses won't be covered under your short-term policy. Pregnancy is not't covered either, although complications arising from pregnancy generally are.
And what happens if you bought a three-month policy only to find that the job you hoped to land - with health benefits - has not't materialized? Don't count on automatically being able to renew your short-term policy, because it doesn't work that way. You have to go through the application process all over again and take out a new policy. If you had any illnesses or injuries during your previous policy period, those now become pre-existing and won't be eligible for coverage.
Shop around on your own compare rates and benefits from several companies to make sure you get a plan that's right for you. For more information and rates on short-term health insurance visit our specialist site below.
Catastrophic Health Insurance
Catastrophic health insurance policies are intended only to pay for major hospital and medical expenses, not routine visits to the doctor's office or trips to the ER to get stitched up. A catastrophic plan would cover things like treatment in an intensive-care unit for 10 days after an auto accident or complications from a pregnancy that land you in a hospital.
Catastrophic health insurance policies typically come with a very high deductible from $500 to $15,000 and a high maximum benefit payment, such as $1, $2 or $3 million.
Who buys catastrophic health insurance?
There are two groups of individuals who commonly purchase catastrophic health insurance. The first is the young adults who are self employeed or do not have coverage through their employer. They are healthy on no medications and would rather pay their own office visit and save the premium. The second group is primarily made up of individuals between the ages of 50 - 65. They typically choose high deductibles $5,000 and up and are primarily concerned with catastrophic losses associated with heart attacks, cancer and other such illnesses.
Is Catastrophic Coverage Right For You?
As with all insurance you are gambling that you are going to need the coverage. With catastrophic coverage you are elimination coverage to reduce premiums. Be careful not to take a deductible larger than you can afford and plan for what you're comfortable with is the worst happens. Shop around on your own or talk to an independent insurance agent to make sure you get a plan that's right for you. For more information and rates on catastrophic health insurance visit our specialist site below.
Traditional Health Insurance
Up until about 30 years ago, most people had traditional indemnity coverage. These days, it's often known as fee-for-service. Indemnity plans are a bit like auto insurance: you pay a certain amount of your medical expenses up front in the form of a deductible and afterward the insurance company pays the majority of the bill.
Advances in modern medicine increased the cost of providing health care and made it possible for people to live longer. Those advances caused many insurance companies to look for ways to reduce their costs of doing business, giving managed care the boost it enjoys today.
Fee-For-Service
For years, indemnity or fee-for-service coverage was the norm. Under this type of health coverage, you have complete autonomy when it comes to choosing doctors, hospitals and other health care providers. You can refer yourself to any specialist without getting permission, and the insurance company doesn't get to decide whether the visit was necessary.
You don't, however, have complete autonomy. Most fee-for-service medicine is managed to a certain extent. For instance, if you're not already incapacitated, you may need to get clearance for a visit to the emergency room.
On the down side, fee-for-service plans usually involve more out-of-pocket expenses. Often there is a deductible, usually of about $200, before the insurance company starts paying. Once you've paid the deductible, the insurer will kick in about 80 percent of any doctor bills. You may have to pay up front and then submit the bill for reimbursement, or your provider may bill your insurer directly.
Under fee-for-service plans, insurers will usually only pay for reasonable and customary medical expenses, taking into account what other practitioners in the area charge for similar services. If your doctor happens to charge more than what the insurance company considers reasonable and customary, you'll probably have to make up the difference yourself.
Traditionally, preventive care services like annual check-ups and pelvic exams have not't been covered under fee-for-service plans. But as the evidence mounts that preventive care can prevent more costly illnesses down the road, some insurers are including them.
Fee-for-service plans often include a ceiling for out-of-pocket expenses, after which the insurance company will pay 100 percent of any costs. Traditional fee-for-service coverage offers flexibility in exchange for higher out-of-pocket expenses and is not for everyone.
Shop around on your own or talk to an independent insurance agent to make sure you get a plan that's right for you. For more information and rates on short-term health insurance visit our specialist site below.
Preferred Provider Organizations (PPO'S)
"Managed Care"
A Preferred Provider Organizations is the least restrictive type of managed care. PPOs have made arrangements for lower fees with a network of health care providers. PPOs give their policyholders a financial incentive to stay within that network.
For example, a visit to an in-network doctor might mean you'd have a $10 co-pay. If you wanted see an out-of-network doctor, you'd have to pay the entire bill up front and then submit the bill to your insurance company for an 80 percent reimbursement. In addition, you might have to pay a deductible if you choose to go outside the network, or pay the difference between what the in-network and out-of-network doctors charge.
With a PPO, you can refer yourself to a specialist without getting approval and, as long as it's an in-network provider, enjoy the same co-pay. Staying within the network means less money coming out of your pocket and less paper work. Preventive care services may not be covered under a PPO.
Exclusive Provider Organizations are PPOs that look like HMOs. EPOs raise the financial stakes for staying in the network. If you choose a provider outside the network, you're responsible for the entire cost of the visit.
Is a PPO Right For You?
Rates and coverage vary form state to state so shop around on your own or talk to an independent insurance agent to make sure you get a plan that's right for you. For more information and rates on PPO health insurance visit our specialist site below.
Point-of-Service (POS) "Managed Care"
A Point-of-Service plan is a little more least restrictive type of managed care. Point-of Service plans like PPO's have made arrangements for lower fees with a network of health care providers and give their policyholders a financial incentive to stay within that network.
However, Point-of-service plans introduce the gatekeeper, or Primary Care Physician. You'll need to choose your primary care physician (PCP) from among the plan's network of doctors.
As with the PPO, you can choose to go out of network and still get some kind of coverage. In order to get a referral to a specialist, though, you usually must go through your PCP. You can still choose to refer yourself, but it'll mean more hassles and more money coming out of your pocket.
If your PCP refers you to a doctor who is out of the network, the plan should pick up most of the cost. But if you refer yourself out, then you'll probably have to deal with more paper work and a smaller reimbursement. You may also have to pay a deductible if you go outside the network.
POS plans may also cover more preventive care services, and may even offer health improvement programs like workshops on nutrition and smoking cessation, and discounts at health clubs.
Is a POS Right For You?
Rates and coverage vary form state to state so shop around on your own or talk to an independent insurance agent to make sure you get a plan that's right for you. For more information and rates on POS health insurance visit our specialist site below.
Health Maintenance Organizations (HMO's)
"Managed Care"
A Health Maintenance Organization plan is the most restrictive type of managed care. Like Point-of Service and PPO's, HMO's have made arrangements for lower fees with a network of health care providers and give their policyholders a financial incentive to stay within that network.
HMO plans also utilize a gatekeeper, or Primary Care Physician. You'll need to choose your primary care physician (PCP) from among the plan's network of doctors. HMO's require that you only see their doctors, and that you get a referral from your primary care physician before you see a specialist. In most cases you'll need to get clearance before you can visit the emergence room, if your able. In general, you must see HMO approved physicians and use HMO approved facilities or pay the entire cost of the visit yourself.
HMO plans generally cover more preventive care services, and may even offer health improvement programs like workshops on nutrition and smoking cessation, and discounts at health clubs.
Is a HMO Right For You?
HMO coverage is a trade-off between premiums paid and plan flexibility. HMO's offer some very attractive rates but are very restrictive when it comes to coverage. Rates and coverage vary form state to state so shop around on your own or talk to an independent insurance agent to make sure you get a plan that's right for you.
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