Choosing Individual Health Insurance Plan
Before you go on to compare health insurance quotes, it is crucial to choose a suitable health insurance plan for yourself. The first step in this direction is to assess and comprehend your own medical needs. Consider the usual healthcare expenses that you pay for and any particular health risks that you may be susceptible to. Analyzing your health risk will give you a better idea of the kind of health insurance coverage that you should opt for.
There are various kinds of individual health insurance plans in the United States. Primarily, the plans that are called ‘Managed Care Plans' are segregated as Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). While
HMOs provide healthcare via a closed network of medical practitioners and hospitals, the
PPOs also have their own network of specialists, with the added facility of consultant doctors outside the chosen network. They are therefore considered more flexible than HMOs. With their wider range of consulting medical faculty, the PPO plans naturally cost more as compared to those of the HMOs. You should therefore do a thorough cost-benefit analysis while opting for one.
Yet another alternative is to choose a high deductible health plan (HDHP) and be eligible for an HSA (Health Savings Account). HDHPs have comparatively low monthly premiums as against other health insurance plans and let individuals pay for their personal medical expenses through tax deferred savings in the HSA. To select suitable health insurance coverage you can also consult a professional insurance broker in Texas.
The monthly premium
While health insurance plans vary as per the kind of managed care provided, all of them have certain common features as insurance products. These are the parameters upon which you can compare them. The most significant of these features is the monthly premium charged from the individual insured. As per the amount of coverage provided, the monthly health premium will differ. PPOs charge higher premiums in comparison to
HMOs and HDHPs.
The deductible amount
A deductible is a fixed annual sum that you must pay towards a medical expense before the health insurance kicks in fully. Once the deductible is paid, the health plan starts to pick up its portion of your medicare bills. The deductible for various types of treatments differs as per the managed care plan that you opt for. Look for minimum deductible mentioned by the plans that you have shortlisted and will buy from. Typically, lower the deductible, higher is the premium amount that you have to pay for.
The co-payment and coinsurance details
A minimum amount of fees has to be paid by the insured individual for every treatment, and the insurance plan covers the rest. This is called 'co-payment'. You are advised to check the co-payment amounts that are charged by HMOs and PPOs for various treatments. Coinsurance is the percentage of medical expenses that are paid for by the insurance company. For instance, a company may have 80:20 ratio in its agreement which implies that it pays for 80% of the cost of every treatment.
The difference between deductible and co-payment is that the former is on yearly basis (to be paid just once a year) while co-payments are ongoing and have to be paid every time the insured individual needs a medical service.
There are various kinds of individual health insurance plans in the United States. Primarily, the plans that are called ‘Managed Care Plans' are segregated as Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). While
HMOs provide healthcare via a closed network of medical practitioners and hospitals, the
PPOs also have their own network of specialists, with the added facility of consultant doctors outside the chosen network. They are therefore considered more flexible than HMOs. With their wider range of consulting medical faculty, the PPO plans naturally cost more as compared to those of the HMOs. You should therefore do a thorough cost-benefit analysis while opting for one.
Yet another alternative is to choose a high deductible health plan (HDHP) and be eligible for an HSA (Health Savings Account). HDHPs have comparatively low monthly premiums as against other health insurance plans and let individuals pay for their personal medical expenses through tax deferred savings in the HSA. To select suitable health insurance coverage you can also consult a professional insurance broker in Texas.
The monthly premium
While health insurance plans vary as per the kind of managed care provided, all of them have certain common features as insurance products. These are the parameters upon which you can compare them. The most significant of these features is the monthly premium charged from the individual insured. As per the amount of coverage provided, the monthly health premium will differ. PPOs charge higher premiums in comparison to
HMOs and HDHPs.
The deductible amount
A deductible is a fixed annual sum that you must pay towards a medical expense before the health insurance kicks in fully. Once the deductible is paid, the health plan starts to pick up its portion of your medicare bills. The deductible for various types of treatments differs as per the managed care plan that you opt for. Look for minimum deductible mentioned by the plans that you have shortlisted and will buy from. Typically, lower the deductible, higher is the premium amount that you have to pay for.
The co-payment and coinsurance details
A minimum amount of fees has to be paid by the insured individual for every treatment, and the insurance plan covers the rest. This is called 'co-payment'. You are advised to check the co-payment amounts that are charged by HMOs and PPOs for various treatments. Coinsurance is the percentage of medical expenses that are paid for by the insurance company. For instance, a company may have 80:20 ratio in its agreement which implies that it pays for 80% of the cost of every treatment.
The difference between deductible and co-payment is that the former is on yearly basis (to be paid just once a year) while co-payments are ongoing and have to be paid every time the insured individual needs a medical service.
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