Medical Health Insurance
Medical health insurance, the physical "just in case" insurance coverage you and/or your employer purchase to protect your body against disease and medical emergency has lately gone from an often dismissed subject, to an explosive one. From questions like who can/should have it and how our government asserts itself in the process of acquiring it; to the potent (and prevalent) issue of how to afford a solid plan-- traversing the minefield of buying medical health insurance coverage can be challenging. Though the best defense against rising out-of-pocket health care costs is to maintain a healthy lifestyle, it is just as important to know the language of your medical health insurance policy before you buy. The topic of medical health insurance alone is a big one and can be overwhelming when you first encounter its many aspects and options so we've put together a little "cheat sheet" of terms to study before you begin shopping for your medical health insurance plan.
Understand that when you purchase a medical health insurance plan, whether it is an individual, family or business plan, you are entering into a legal contract with your insurance company. Each insurance company offers unique coverage combinations based upon your health, your history and your location. Each company also has a varied terms of use policy detailed in your "Evidence of Coverage" contract booklet. This booklet will have all the details of the policy and the contract and should be examined thoroughly before signing your policy.
Know the types of medical health insurance plans available:
- HMO
- Short for Health Maintenance Organization. This type of individual health care plan revolves around the premise of preventive care. You pay a small monthly fee to belong and then varied co-pays for doctor care from an approved list of providers.
- PPO
- Short for Preferred Provider Organization. PPO's differ from HMO's in that you are allowed to choose your own provider from any network and are able to see a specialist or use emergency care without a referral. PPOs are often more expensive than HMO's, both in monthly costs and out-of-pocket expenses.
- POS
- Short for Point of Service. A newer hybrid of HMO and PPO with the freedom of choices a PPO provides but with HMO pricing.
Look at your budget and determine what you can afford to pay for an insurance plan if your state or employer isn't subsidizing the cost for you. If you are a person in need of constant medical care, have a large family or work a job that may result in multiple trips to the emergency room, you may want to spend the extra money and purchase a comprehensive health care plan or one that will provide larger payouts over the term of your policy. However, if you are an individual in fair health with a strict budget seeking merely your annual doctor's visits and the occasional emergency visit, then a scheduled plan may be better for you. These plans cost much less out-of-pocket and provide the basic necessities for annual medical health care.
Understanding the options you have in terms of medical health insurance is crucial in picking the right insurance policy for you or your family.