7 Health Insurance Questions to educate you

7 Health Insurance Questions to educate you

Health insurance is everywhere but getting quality coverage is scarce. If you want to purchase health insurance, get yourself educated. Go online, research and gather sufficient information to help you take a decision.

However, let me take you through some of the frequently asked questions on health insurance.

What is health insurance?

Health insurance is a financial safeguard against expensive medical cost. It’s usually a contract between the insurance company and an individual or group, whereby the insured pays premium monthly or annually to an insurance company, In return when the policy holder is sick and hospitalized, the company takes care of the medical bill.

What is the difference between comprehensive and scheduled health insurance?

Comprehensive health insurance pays a percentage of the cost of hospital and doctor charges after a deductible as applies to hospital bills or a co-payment as applies to doctor’s charges.

This plan is expensive because of high payout.

Scheduled health insurance plan provides access to day to day health care such as visiting a doctor or getting a prescription drug. This plan can also be referred to as mini-med plans or association plans. It cost less than the comprehensive health insurance and provides limited payout.

What is deductible?

This is the amount a policy holder has to pay out of his pocket before the insurance company pays its share.

For instance, if a policy holder’s deductible is 0 per year, and he’s hospitalized, before the insurer can pay the bill, he has to pay the 0 first before the insurer intervenes.

What is Co-payment?

Co-payment is an amount a policyholder must pay-out of his pocket before the health insurance provider pays for the cost of doctor’s visit or that of prescription.

What is Co-insurance?

This is a percentage of the total health cost a policy holder may pay instead of, or in addition to co-payment.

Assuming an insured person has a co-insurance of 25%, when he incurs a medical bill of about 00, his insurer will require him to pay 25% of the cost while they pay the remaining 75%.

What are health insurance exclusions?

These are services not covered by your policy. These exclusions are explicitly spelt out in your policy. If you suffer any health challenge caused by these exclusions, you will have to pay the full cost of your medical bills out of your pocket.

Therefore, you are advised to always study your policy to know what you are covered and not covered for.

What is Capitation?

This is an amount an insurance company pays to a health care provider. In return the provider agrees to treat all members of the insurance company.

What is COBRA?

COBRA is the acronym of Consolidated Omnibus Budget Reconciliation Act. It is a health insurance plan regulated by the United States Department of Labor. It is designed for those who are laid off from job.

According to a 1986 federal law, your former employer should offer you the option to pay for an extension of your health insurance coverage for at least 18 months at a subsidized cost.

This program allows you to pay only 35% of your health policy while the federal government takes care of the 65%.

I believe you have been enlightened.

If you want to purchase health insurance, work with online insurance brokers to get the best deal.

Where to start?

Medical Health Education | Copyright © 2012: