There are a lot of factors to keep in mind when you begin hunting for the right health insurance plan. The monthly cost is usually the primary focus for most people when selecting health insurance. However, it is important to make a compare-and-contrast checklist between insurances to ensure you get the most bang for your buck. In this article, we will go over these factors:
- What is a Premium?
- What are Deductibles?
- Co-pay and Co-insurance
- Pharmaceutical Coverage
- Dental Benefits
1. What is a Premium?
Premium is the total cost you pay for a health insurance plan. Different plans have different payment options: monthly fee or in full. This amount is different from the deductible. All in all, the “premium cost” depends on the benefits you will be receiving.
2. What are Deductibles?
A deductible is a set dollar amount that a consumer needs to pay toward any medical expenses initially, before the insurance begins to pay for the services during your coverage period. Following this payment, the health insurance company will then pay off the medical expenses in accordance with the plan. It is advised that those who have a lot of medical expenses such as frequent doctor visits or purchasing prescription medication, the best option is to opt for a plan with a lower deductible. Learn more!
3. Co-pay and Co-Insurance
Co-pay is the additional cost customers have to pay, after the premium cost. Co-pays apply to every doctor visits, emergency room visits; urgent care visits and prescription drug purchases. Simply, the higher the premium, the lower the co-pay.
Co-Insurance is the remainder medical bill you have to pay after the insurance pays. The percentage covered by the insurance depends on the plan and whether you have met your deductible. For example: Hospital fee is $1000, if deductible is met and co-insurance is 20%, you pay $200 and the insurance will pay the remaining $800. However, if deductible is not met, you would have to pay the full $1000.
4. Pharmaceutical Coverage
Not all prescribed medications or services are covered by insurance. It is important to double check if your drug is covered by your insurance and/or plan. Sometimes, the drug you have always bought was only a few dollars with your old plan but now with the new plan, it’s $100.
5. Dental Benefits
Most dental procedures are not covered by health insurances. It’s best to also shop around for dental insurances whilst searching for health insurances as well. Click here for more information: https://www.wikihow.com/Choose-Health-Insurance
Types of Health Insurance Plans
The most common Health Insurance Plans can be grouped into one of three categories:
- Indemnity of Fee-for-Service Plans
- Health Maintenance Organizations (HMOs)
- Preferred Provider Organizations (PPOs)
Not all insurancesare the same. A plan that worksfor you might not work as well for someone else. Each plan has its advantages and disadvantages. Thus, assessing your medical needs and health situation is very important. Check to see if your providers, hospital and medications are covered. It’sgood to check what your insurance will cover and confirm with your provider that their pricing is in line with what the insurance will pay.