The Crucial Health Insurance Types You Need Today
Insurance is something most Americans love to hate. Although we like complaining about the high premiums, we must admit that insurances are real lifesavers.
In the case of health insurance, the life-saving part is quite literal. That’s why, as of 2017, 91.2% of Americans had some form of health insurance, and this figure is projected to increase in the coming years.
However important health insurance is, it doesn’t necessitate the need to have all types of policies. It’s wise to boil down to a few vital ones that might come in handy. Otherwise, you’ll be paying a bundle for insurance premiums every year.
In this piece, crucial health insurance types that you can’t afford not to have. By knowing these insurance policies, you can make a more informed choice when settling for health insurance.
Seven Health Insurance Types You Should Consider
No matter how long your spell of good health is, you should never skip on health insurance.
On the flip side, some health insurance policies won’t do you any good.
That’s why you need a firm understanding of these vital insurance types. That way, you get value for your insurance premiums.
Here are seven health insurance types you could settle for. They include the major medical health insurance plans and other healthcare options that may suit your situation.
What are The Vital Major Medical health insurance Plans?
All Obamacare-compliant insurance policies are known as major medical health insurance plans. All these insurance plans fall under the Affordable Care Act or ACA.
This act aims to extend health coverage to millions of Americans who couldn’t afford basic health insurance. The key tenets of this act include:
- Barred insurance companies from denying coverage because of preexisting conditions
- Allowed savings on healthcare for low-income families through cost-sharing reductions
Here are some major health insurance plans you should consider:
1. Health Maintenance Organization (HMO) Plans
HMO plans are pretty popular in the country. In this plan, a network of healthcare providers agrees to provide you its services. However, you have to choose a primary care provider who’ll coordinate all your health care needs.
After you co-pay and handle all your deductibles, the HMO will cover most of the other expenses. Your PCP will stipulate your deductibles and out of pocket costs.
HMOs generally have lower out of pocket costs than most insurance plans. However, there is less flexibility in the healthcare providers you can visit. You can’t get any coverage when you go outside the network of healthcare providers.
2. Preferred Provider Organization (PPO) Health Insurance Plans
In this plan, employees are encouraged to seek healthcare from specific doctors and hospitals. Employers contract with these doctors or hospitals to give discounted rates to members of this plan.
Employees are free to choose any medical specialist within the group of doctors or hospitals. You pay lower medical costs if you choose to see doctors or visit hospitals within the group.
Should you choose to go outside this group, you pay more for your healthcare.
3. Point of Service (POS) Plans
Point of service plans are pretty similar to HMOs. You can go as far and call it a type of HMO. Here Employees select a primary care physician from a network of healthcare providers.
Employees get higher coverage when they go to healthcare providers referred by their PCP. Also, the employees are subject to lower out-of-pocket costs. In most cases, you may not pay the policy’s deductible if you opt for healthcare from your PCP.
Other Types of Health Insurance Plans You Should Consider
Aside from these major health insurance plans, there are other plans outside the affordable care act. Typically these other plans have higher coverage but with higher premiums.
These plans are typically for special or unique cases, though they also cover basic healthcare. Here are other vital health insurance plans to choose from:
1. Long-Term-Care Insurance
There’s a lot of debate about whether long term care actually qualifies as a health insurance plan. Long term care is one of those special cases insurance plans.
This plan covers both the medical and non-medical aspects of a recovering patient—anyone who needs help doing basic stuff like walking, eating, or bathing. Typically, friends or family can be of assistance, but this may not be possible for most folks.
You may have to consider paid staff, nursing homes, or community homes. In such cases, then long term care insurance offers reasonable coverage with very flexible terms.
2. Short-Term-Care Insurance
Short term care insurance plans are ideal for unprecedented situations. When you are between different plans, you may be off the enrollment period of your current plan and need urgent care.
Short term health insurance coverage varies from plan to plan and the insurance company. They mostly cover emergency care, preventive care, and the likes.
Three things to consider when choosing a short term care insurance plan:
- How the plan works
- What the plan covers
- How much it will cost you
3. Catastrophic Coverage
Treating cancer can be a real financial burden. Catastrophic coverage comes in during such worst-case health scenarios.
As such, this insurance doesn’t cover routine medical expenses like doctor’s visits or emergency care. It, however, comes in handy when you have a serious illness. What’s more, this insurance plan generally has pretty low premiums.
You may end up paying a high deductible for illnesses that are pretty expensive to treat. All in all, it will greatly cut down on the overall cost of treatment should you be seriously sick.
4. Hospital Indemnity Policies
Hospital indemnity policies are interchangeable with supplemental medical policies. The insurance company pays a stipulated amount each day you’re in the hospital.
There may be a limit to the number of days the company pays you. You can use the payment for various purposes, including medical costs, or to cover family expenses during your recovery period.
Health Insurance Is Mandatory
With all these different health insurance types, you have no reason whatsoever to skip out on health insurance. The affordable care act can cater to low-income families, so affordability is not a valid excuse.
Remember, when choosing a health insurance plan, choose one that specifically benefits your situation. Premium cost shouldn’t be the primary factor you consider when choosing an insurance plan. Sometimes those low insurance plans may ultimately do you in.
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