Health insurance is an assurance by the insurance company that it will pay for the cost of medical services availed by the policy holder. However, when it comes to making a choice, there are many different types of health plans that an individual can choose from. Furthermore, each plan has its own features, different premiums and certain exclusions. This can make the whole affair of health insurance quite confusing.
Here is a list of some frequently asked questions that will be useful in understanding the different type of plans, health insurance covers, and their financial limitations etc.
Q: How Can I Buy A Health Insurance?
A: Health insurance can be acquired in three ways. The most common method is insurance provided by the employer of a company. Large businesses have their own employee welfare benefit plans, which are sponsored by the company. Under these plans, health insurance is provided to all the employees.
Individuals, not associated with any company, can buy health insurance directly from an insurance company. They can pick a plan of their choice, according to their age group, health condition, risks etc.
The government also sponsors health programs for the poor, government employees, army personnel etc. Certain health care centers provide services at subsidized rates. Workers too receive free treatment by the state if they suffer any injury while on the job.
Q: Why Do I Need A Health Insurance?
A: Health Insurance is very important for our health and fitness. If we have a health insurance policy, we do not need to think twice to see a doctor. Thus, a health insurance enables us to:
• Receive immediate medical care
• Test and diagnose any serious disease
• Get treatment at the very onset of a disease or medical problem
On the other hand, people without health insurance, tend to overlook their problems and delay seeing a doctor till the symptoms worsen. Therefore, when they do get medical care for a severe or chronic illness, it is incomplete or not the best treatment possible.
Q: What Do I Have To Pay For A Health Insurance?
A: A health insurance requires you to pay the premium, which is basically an installment for the insured amount. Besides the premium, you will also need to pay deductibles and co-pays. Co-pay is a fixed payment made on each visit to a health care center and is usually calculated as a part of the actual charges.
Q: What Does The Term HMO Mean?
A: ‘Health Maintenance Organizations’ are referred to as HMOs. These organizations offer medical services to the insured policyholders. These may be in the form of a plan where a policyholder can walk-in for his health problem. Alternatively, the HMO can have doctors and health care providers on the panel.
We hope these FAQs will help you to understand the concept and importance of health insurance.