What To Beware Of When Getting Your First Health Insurance Plan


What Is Insurance?

Insurance is an arrangement that helps protect an individual or a company from financial loss. It can be termed as risk management basically setup to guard against uncertain conditions or circumstances. A body that is responsible for providing insurance is known as either; an insurer, an insurance company or an insurance carrier.

There are various types of insurance policies, like; Auto insurance, Life insurance, Travel insurance, Home or Rental insurance and Health insurance. Today’s article will however be getting more insight on Health Insurance and the things you should know when getting your first health insurance plan.

What is Health Insurance?

Health insurance is a system that handles your medical expenses. Like a situation where you fall sick, injured or in an accident, health insurance has you covered. It will interest you to know that health insurance also covers preventive care. What this means is, a doctor will pay you a visit and run some tests before you eventually get sick.

Health insurance is structured to share cost of the medical bills with you. More so, the plan must cover certain essential benefits like;

  • Emergency services
  • Drug prescription
  • Laboratory services
  • Pregnant, maternity and newly born care
  • Pediatric services
  • Any form of mental health disorder
  • Out of hospital services (you will still be treated even if you are not admitted in the hospital)
  • Preventive treatment/services etc.

In addition to the above, health insurance plans must meet some other rules, though this might vary depending on the location. But must also meet certain standards of affordability. Specific federal standards ought to be met too before being considered as a qualified health coverage. All of these are consumer protections put in place to avoid facing certain financial problems experienced by certain policy holders in the past.

Who needs a Health Insurance?

There is no exception to who needs a health insurance. I mean even if it isn’t mandatory which it is, we are talking about your health. No one prays for unforeseen circumstances affecting our health to occur, but they happen regardless. A lot of people try to avoid getting an insurance plan with the idea that it is expensive. What you don’t know is, the tax fee you face for not having a health insurance is way more expensive than the health insurance plan itself. And the amount of money you pay from your pocket is also way higher that the tax fee if you are without health insurance. So think about it, which is more cost effective? Medical bills have a history of putting a lot of people in debt or even keeping you from getting the right healthcare services.

What you should know before you pay for a Health Insurance plan

Seeing that we have established the importance of getting a health insurance plan, there are a few things too look out for. Especially if it is your first ever insurance plan subscription.

Before you pick a health insurance plan, here are some things to consider;

  1. Check if your personal doctor is covered: As an individual having a personal doctor is ideal because you can always turn to him or her in case of emergency. Before you pick a plan, find out if your doctor is covered by any of the insurance plans you are thinking of subscribing to. Because HMOs restrict you to doctors in their network. PPOs will let you seek for doctors outside of the network at a cost. And POSs allows you go outside for a fee but to a referral made by a primary care giver in the network.
  2. Find out if your medications are covered as well: AS you have read already, not all doctors are covered by insurance plans. The same applies with your medications as not all of the benefits may be covered in some plans.
  3. Carefully examine which plan’s premium meet your needs: Lookout for plans that have a variety of premiums as well as out of pocket expenses that you are ok with. All of which will be budget friendly, not living out you assets either.

There is actually a lot to take into consideration when you want to pick a health insurance plan. The above listed are just a few basic ones.

Please we advise that the purpose of this article is to share insight and information. It is best to see a professional who will properly guide you in making a health insurance plan choice.


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