Need for Health Insurance and Types of Policies

Need for Health Insurance

One thing is not permanent in this world is being blessed with good health. Today, you might be young and active. That is good, but you never know when life will surprise you. There are always uncertainties when you live in this dangerous world. You can get sick or have some illness that requires you to get admitted in the hospital.

When these kinds of things happens, the chances of losing all your money are high. You might even be pushed to bankruptcy. Health care is becoming a lucrative market for many companies. It is becoming common these days, to see hospitals coming up everywhere. One of the reasons for that could be because of the increase in the rise of the patients who are visiting hospitals.

When you consult with a doctor, you have to pay the doctor’s fees, laboratory fees and other expenses. When you have to be admitted for some time in the hospital, then there are so many expenses that you will incur. The need for having a health insurance policy is very clear. When you are covered under a health insurance policy, you are protecting yourself from unwanted tension and stress.

Though paying for this kind of insurance policy can be expensive, the benefits that you will reap from it, are maximized. 

Types of Health Insurance Policies

You have two kinds of health insurance policies, The managed care plan and the indemnity plan. The managed care plan doesn’t allow you to choose your doctors, hospitals, and other medical facilities. The medical facilities are getting only when you are authorized by the managed care plan.

Two of you, who want to receive health care from a medical service provider who is not authorized, then the insurance company won’t pay for your medical care. Mental health treatment and preventive care are covered under this plan. One major advantage of this health plan is that you can visit many medical specialist without getting referrals from the insurance company.

The indemnity plan provides you with more options and freedom. You get to choose your own doctor, hospital, and medical facilities. The medical facility provider must be in the list of the health contract with the insurance company. However, this plan won’t pay the complete fees that will be incurred.

20 % of the fees have to be given by you. Preventive care is not part of this plan. The indemnity plan covers for accidents and illnesses. But, psychotherapy and the cost of prescription drugs depend on the insurance company and the policy that you choose. Since both the plans are becoming popular, hybrid plans have been released.

Hybrid plans are a combination of managed care plan and indemnity coverage plans. The benefits depend on the plan and the company you are choosing your insurance policy from.

Before deciding on your health plan, make sure that understand your requirements well. Beware of the fact that, low premiums don’t necessarily mean the plan is cheaper. You should select a  health insurance policy that provides you and your family with the maximum benefits during illnesses and emergencies.