Important Facts About Medical Insurance

Important facts to consider about medical insurance coverage include variations in plans, costs, availability of group coverage, benefits and co-payments, and the effects of job loss on continuation of coverage.

Plans

• You can find a wide range of health insurance plans, each with specific inclusions and restrictions on what kind of medical services they do and do not cover. You want to find a plan that's appropriate for the kinds of services you are likely to require.

Group Coverage

• The most cost-effective means of getting and maintaining medical insurance is through group coverage, usually obtained through your employer. Group coverage provides medical insurance at reduced rates to a pool of individuals and families with some common factor, such as working for the same employer.

Benefits

• The benefits that different insurance plans offer vary extensively. Plans generally cover hospital and doctor bills, within defined limits. A specific plan may or may not cover other medical costs such as glasses, prescription drugs, screenings (like mammograms) and immunizations.

Co-Payments

• While many plans cover doctor and hospital visits, plans often require the insured to make a nominal payment, or co-payment, for doctor's office visits. Plans that cover prescriptions may also require nominal co-payments for prescriptions.

Job Loss

• Federal and state regulations protect the insured's right to maintain medical insurance coverage in the event of a job loss. However, in many instances the ex-employee must maintain the coverage at a higher cost.