If you consider a health insurance you would find that it is almost similar to any other insurance policy but the only difference is in health insurance people actually try to get all the medical expenses which they may have to pay in future. There are number of companies which offer health insurance plans or policies.
One can get health insurance policy which have been made available to people or citizens by the private companies and also one can choose a government firm to buy a health insurance. Basically the profit which government earns from the health insurance business is usually given to non profit firms which are operated by the government.
Basically the health insurance is of two types – the first type of health insurance is health insurance of an individual and the second type is health insurance of the group. The group insurance is made to facilitate the people who are running big companies and through group insurance they help their employees if any unforeseen situation occurs. And in exchange of that the government provides that businessman or entrepreneur little relaxation in the annual taxes which he or she pays to them.
Following are the few things which one should know before buying any health insurance policy:
The very first thing which one should know is the premium of the policy which he or she would pay monthly or annually. This is an amount of money which has to be paid by the policy holder to the policy provider in order to keep his or her health insurance policy intact. It is basically pain on annual or monthly or quarterly basis. And it is highly dependent on the deductibles and the number of co-payments you do.
The second thing which one should know before buying any best health insurance policy is the deductible. This amount has to be paid by the policy holder as well. For example if a person has to pay one thousand dollars annually as his or her health insurance premium then there would be some amount which they have to pay extra from their pocket in order to get full cover.
The third and very important thing which one should know before investing in any health insurance policy is the co-payment. Policy holder also pays this amount. But this amount is paid much before the policy provider starts providing you with the money for your medical bills and other medical expenses. For example, the policy holder is required to pay $60 dollar to the doctor or when they are obtaining prescription. This co-payment will be done each time they acquire the service.
Co-insurance: Besides paying for the co-payment, an insurer may be also required to pay a certain amount of money as co-insurance. This is a percentage of the total cost of the policy holder. For example an insurer is required to may 30% as co-insurance. At this stage if they undergo any surgery they will pay 30 % of the cost while the insurance company will pay 70 percent. It is over and above the cost of the co-payment.
Exclusions: All different services under the medical service which are not covered under any single insurance policy are exclusion. At this stage, the insurer has to pay the full cost of the service.
Coverage limits: Certain insurance companies pay for a particular service only to a particular dollar amount. The excess charge is paid by the policy holder. Certain companies even engage this limitation to the annual charge coverage or to lifetime charge coverage. The beneficiaries are not paid if the service charge exceeds the mentioned limit.
Out-of-pocket maximums: This is similar to coverage limit, but in this case the insurer’s out of the pocket limits ends, instead of the insurance provider’s limits. Insurance company pays the remaining charge.
Capitation: Capitation is the amount paid by the policy holder to the policy provider in exchange of which the policy provider agrees to cover all the expenses of the insurer’s member.