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.
Deductible is important basic knowledge when it comes to health insurance. The lower your deductible amount the more you can expect to pay in premium. The deductible must be met by the consumer before the insurance company agrees to share the cost.
The next factor is the co insurance. Co insurance is when you have met your deductible and you only pay a percentage for an additional amount. An example is you pay 25% while the insurer pays 75% up to $3000. Once this amount is met the insurer would then pay 100% of any allowed medical cost within that 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.
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.
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.
Deductible is important basic knowledge when it comes to health insurance. The lower your deductible amount the more you can expect to pay in premium. The deductible must be met by the consumer before the insurance company agrees to share the cost.
The next factor is the co insurance. Co insurance is when you have met your deductible and you only pay a percentage for an additional amount. An example is you pay 25% while the insurer pays 75% up to $3000. Once this amount is met the insurer would then pay 100% of any allowed medical cost within that 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.
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.
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 Agent Jeff Cline is ready to assist you with your individual health insurance needs. Broker Jeff Cline will assist you with any health insurance needs, even travel medical insurance for your wonderful trips you have planned. Call us 365 days a year. Our toll free number is 866.526.9669
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