Health insurance is a kind of insurance policy that in most cases covers for medical, surgical, dental and at times dental procedures and some prescription drugs. Health insurance may either reimburse the insured from expenses incurred from an accident or illness or cover the whole medical expense by reimbursing the insurance company. It is important for an individual to know what kind of health insurance he is going to purchase because different health insurance policies have varied policies. Most insurance companies provide health insurance but there are some who may not. In such a case, a person needs to look out for insurance options that could be available to him.
There are many types of health insurance plans available in the market. A person can either get it as a group plan, an individual plan, indemnity plans, managed care plans or Medicare supplement. Health insurance policies that offer reimbursement for hospital expenses, surgical expenses, prescription drugs, doctor visits, medical tests, and X-rays are called HMOs or health maintenance organizations. On the other hand, those health insurance plans that reimburse individuals for their medical treatment expenses are called PPOs or preferred provider organizations.
The best way to get insured is to go for an HMO. In this type of health care insurance plan, a person gets a health care provider he or she can call upon at any time. The cost of services depends largely on the member’s medical needs and preference. One could get insured under an HMO, while another could opt for an indemnity plan or a managed care plan depending on his preference.
Individual plans, on the other hand, allow an individual to choose which health insurance company he would like to get his services done with. Under this health plan, the insured pays his own deductibles and co-pays. The deductible is the amount which the individual has to pay before the insurer will make payment. Co-pays are the amount the individual has to pay in case he gets sick and visits a doctor or gets treated at a hospital. It is important that one visits his doctor regularly and stays away from diseases. Otherwise, it could cost him a lot.
Medicare, on the other hand, is another program that is offered by the federal government. Although Medicare is managed-care insurance plans, yet there are certain differences between it and other health plans. Medicare supplements the old age security system and also pays some monthly benefits to its members. Through this program, the aged can be ensured of constant income support.
If you are seeking for affordable health insurance plans, then it would be wise to do a comprehensive study of different health insurance plans. These plans are designed keeping in view the varying needs and budgets of individuals. You should therefore carefully consider which plan suits your needs best. For instance, a person with a single earning family should opt for a low premium HMO type health insurance plan as compared to those with two earning families. A person with many earning families should opt for the LTCI plans.