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.
If you are looking to lower you monthly rate a good way to do that is going with a high deductible. You must meet all of your deductible before the carrier will share in the cost. So therefore, you take on a bigger obligation they will lower you premium.
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.
A good understanding of the Preventative benefit is also key to comparing and understanding your benefits. Not all plans include Preventative visits. A Preventative exam is a screening and non diagnostic exam meant to maintain good health and foresee any problems with health. Sometimes the benefit will cover many different test and labs, while some will only cover a certain amount.
One basic that is detailed in clear is the limitations. These are sometimes overwhelming to consumers and overlooked. But you need to take the time to know the limitations. They may restrict how much the pay for certain illnesses or treatments. They may only pay for 2 office visits a year.
Another item that is specific is Prescription/RX/Medication coverage. Some plans have a Co pay depending on they type of prescription. Some only offer discounts and some cover absolutely nothing. Many plans also have limits to the amount they will pay per year as noted in #6.
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.
If you are looking to lower you monthly rate a good way to do that is going with a high deductible. You must meet all of your deductible before the carrier will share in the cost. So therefore, you take on a bigger obligation they will lower you premium.
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.
A good understanding of the Preventative benefit is also key to comparing and understanding your benefits. Not all plans include Preventative visits. A Preventative exam is a screening and non diagnostic exam meant to maintain good health and foresee any problems with health. Sometimes the benefit will cover many different test and labs, while some will only cover a certain amount.
One basic that is detailed in clear is the limitations. These are sometimes overwhelming to consumers and overlooked. But you need to take the time to know the limitations. They may restrict how much the pay for certain illnesses or treatments. They may only pay for 2 office visits a year.
Another item that is specific is Prescription/RX/Medication coverage. Some plans have a Co pay depending on they type of prescription. Some only offer discounts and some cover absolutely nothing. Many plans also have limits to the amount they will pay per year as noted in #6.
About the Author:
For super 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 exciting trips you have planned. Call us 7 days a week. Our toll free number is 866-526-9669
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