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A Health Insurance Information Guide

While you probably understand the need for health insurance, you may be confused by the variety of insurance options available. There are different types of policies, as well as various levels of coverage that affect diverse ages and lifestyles differently. Choosing a policy is easiest when you understand your own coverage needs, as well as the laws governing insurance and the types of policies available to you.

  1. Health Insurance Laws

    • In 2010, Congress and President Obama passed the Affordable Health Care for America Act, which will require all Americans to carry health insurance coverage by 2014. New reforms under the bill require that all health insurance plans provide free preventative services, such as routine screenings, regular health checkups and childhood immunizations. Children can't be denied coverage for a preexisting condition, coverage can't be rescinded when you become sick, and insurance companies can't impose lifetime limits on coverage.

    Types

    • While there are various types of health insurance plans, such as indemnity plans that pay a fee for each medical service performed, there are two main types of insurance plans used for most health insurance policies today. HMOs, or health maintenance organizations, typically offer lower out-of-pocket costs to you overall, but restrict the number of health care providers available to you under your benefits. A PPO, or preferred provider organization, has fewer restrictions but results in higher monthly premiums and out-of-pocket costs.

    Finding Insurance

    • Choosing a health insurance plan is often influenced by the availability of options to you. Employers often offer group health insurance plans in which the employer pays for part or all of your premiums. These group plans often have expansive coverage at discounted rates. On the other hand, you may be eligible for government options, such as Medicare or Medicaid, depending on your age, income levels and whether or not you're disabled. If you're not eligible for or choose not to participate in employer or government options available to you, the private health insurance market is open to all applicants and features rates based on your health status and selected coverage levels.

    High-Risk Insurance Pool

    • Despite the various health insurance plans available through employers, government providers and private health insurance policies, you may be ineligible for one or more reasons. If you're denied insurance from a private health insurance provider due to a preexisting condition, the federal government and certain states offer preexisting-condition insurance pools. These pools feature health plans that you can't be denied for based on a preexisting condition. Policies provide a wide range of coverage, including for your preexisting condition.

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