Health Insurance Help

Health insurance is a topic that confuses many people, but it is also necessary if you want to avoid extremely large medical bills. If you do not have health insurance, evaluating the available options can be intimidating. Learning about the different types of insurance and coverage options can help you make the best decision.

Group vs. Individual Plans

• Health insurance can be purchased as part of a group plan or as an individual. If you work for an employer full-time, there is a good chance that you can get health insurance coverage as part of a group plan. If you are self-employed or unemployed, you may need to buy an individual plan. Group plans generally have lower premiums because of the large number of people who are on the plan. Employers also generally pay a portion of the premium for their employees.

Networks

• Most health insurance plans come with some type of network associated with them. Health insurance companies set up these networks as a way to lower costs for their members. If you seek medical care at a facility that is in the network, you will get a substantial discount and your insurance company will cover the charges. If you go out of the network, the bill will be much larger and you might have to pay for the entire bill out of your own pocket.

Out-of-Pocket Expenses

• With health insurance, there are a number of out-of-pocket expenses that you will have to deal with. The premium is the amount of money that you have to pay on a regular basis for the health insurance coverage. Then if a claim is filed, you have to pay your deductible. Many plans have a co-pay, a nominal amount that you must pay for doctor's office visits, hospital stays or prescriptions. Most policies also have a co-insurance maximum that you have to pay out of pocket on large bills. After that maximum has been reached, the insurance company pays the rest.

Coverage Options

• When choosing a health insurance plan, it is important to look at the different coverage options that are provided. Every health insurance plan provides different benefits to policy holders. For example, some might provide more preventive care, covering procedures such as checkups and screenings. Others might provide some type of coverage for prescription drugs and mental health benefits, while others do not provide anything for these. Regardless of which policy you choose, you need to make sure that it has the types of coverages that you believe you are most likely to need in the future.