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| Basics of Health Insurance |
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| Written by Jeff Cline |
| Wednesday, 11 February 2009 11:40 |
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Health insurance can prove to be confusing to many consumers. Understanding the basics is key to maintaining individual health insurance that meets your needs and expectations as well as your budget. By educating yourself with the basics you can accomplish that. Here are 7 basics to get you started. The first basic detail in health insurance is the Life Time limit they set, or the Lifetime Maximum. If you should have a critical illness such as cancer and extra $2million is a major benefit not to be overlooked. If your Lifetime Maximum is $3million, that is the most it shall ever payout. Deductibles also make a significant difference. The deductible is the amount you must pay out of pocket before the insurer will share any cost. A general rule is the higher the deductible the lower the premium will be. When you hear the term "Total out Of Pocket' it is referring to your deductible plus your co insurance. After meeting your set deductible you may the start paying a percentage of your occurred medical expenses. This is what insurance companies refer to as co insurance. You may have a 70/30 plan with a maximum of $2000. So the insurer would cover 70% while you cover 30% until the maximum was met, at which time the insurer would pay 100% for the remainder of the year. Another often misunderstood part of insurance is Co Pays. If your plan has built in Co pays for Office Visits you pay only the co pay amount even if you have not met your deductible or co insurance. There are some exceptions, if not noted in the plan as included in office visit you would still have to pay lab and x-rays. Many insurance plans include what is called a Preventative exam. As a general rule the benefit allows one preventative exam a year. One thing that baffles consumers when they get an unexpected bill is the limits. Many have a maximum pay out. So if you went for an exam and the expense was $500 and the insurer pays a maximum of $300 you should expect a bill for the remaining balance. Each plan has limits set forth by the carrier/insurer/insurance company as well. Some examples of limits are: You are only allowed a specific number of office visits. You are allowed a certain dollar amount on things such as prescription benefits, labs, mental health and emergency visits. These are important to pay attention to when choosing and comparing plans. Getting your prescriptions covered is important to many due to the high cost of prescriptions. So knowing how your prescription coverage works is very important. One plan may cover a generic at one co pay and a brand name at another. You might also have a cap. For instance the carrier may only agree to pay $500 a year in Brand name. About the Author: For fantastic service Broker Jeff Cline is ready to assist you with your individual health insurance needs. Broker Jeff Cline will assist you with all health insurance needs, even travel medical insurance for your wonderful trips you have planned. Call us 7 days a week. Our toll free number is 866-526-9669 Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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