Individual Health Insurance
An individual health insurance policy is for those people who do not get some kind of insurance cover through their employer. Your health insurance provider will take your age into consideration along with your health conditions (both past & present) before deciding your exclusive premium costs.
It is important to decide the extent of insurance coverage that will fit into your financial and health needs. It would be a good idea to talk to a couple of physicians before selecting an insurance plan. You could also do a personal survey of the various companies providing you health insurance potions to help you narrow down on an insurance provider that best suit your needs.
Some people view health insurance as a form of investment in maintaining ones health. Even though, it is prudent to be cautious about your health than spending all the insurance money you may have invested in your health insurance account.
Health insurance companies provide people with different plans for different needs at different rates. Though, it is unrealistic to expect that health insurance plans can accommodate the precise requirements of every person. There are basically 4 sub-categories of health insurance plans. People usually choose a plan from these four sub-categories, picking one that closest suit their needs and financial requirements.
Health Maintenance Organization or HMO
Because of the low cost of the HMO plans, they are usually one of the most commonly purchased of the 4 categories of health insurance. The reason for their low cost is the restricted access they provide to health care that keeps subscribers of this plan covered with a small web of services.
HMO subscribers consult a primary care physician who would provide routine health care, treatments for any injuries or illnesses etc. Subscribers have to pay a monthly fee rate that covers the services that the plan offers. Any service utilized by a person outside this plan is expected to pay the fees for that service separately.
Point Of Service or POS
A POS plans allows a subscriber to refer himself to services outside the plan and gain partial health insurance coverage. Slightly more expensive than HMOs, Point of Service plans or POS provide a subscriber with a little more freedom with their health care services. People opting for the POS service select a primary care physician who takes note of their health care preferences and refers them to other providers contained by the same plan.
Preferred Provider Organization or PPO
After the POS health insurance plan, the Preferred Provider Organization or PPO is more expensive. This is because it offers more flexibility in health insurance schemes than the first two, and also better access to health care. A fixed amount is to be paid that takes care of all your health care requirements.
The PPO plan allows a subscriber to consult a doctor of choice, but it needs to be kept in mind that if a subscriber sticks within the web of services provided by the PPO the costs would be marginally less. Same applies for any services which a PPO subscriber undertakes outside the network.
Indemnity
The last sub-division of health insurance is the indemnity plan. They are the most expensive of all the 4 sub-sections of health insurance plans, allowing a subscriber the most freedom and greatest access to health care. The advantage of an indemnity plan is that there is no network that a subscriber is restricted within.
Subscribers to this health insurance plan are free to pick their doctor of choice for consultation. After receiving any kind of treatment, your doctor could submit a claim to the health insurance provider to enable you reimbursement to all expenses based on treatment. Indemnity plans usually reimburse a subscriber with 80% of treatment charges, with the subscriber having to pay the remaining 20% out of his own pocket. Though the plus side is that indemnity health insurance plans usually offer an ‘out-of-pocket maximum’. Through this service if your health care expenses reach a predetermined limit in a certain year, your insurance provider will cover 100% of your health care expenses.
Now how does health insurance differ from health care? The professional process of maintaining one’s health can be called healthcare. Healthcare providers treat illnesses, injuries, etc., to ensure good public health. Various diagnostic services, mental healthcare and other prescription related services are the constituents of health care. Preventive healthcare is the most common type of health care practiced in the healthcare industry.
Rising costs of healthcare causes a hindrance for people to decide on the health care plan that is best suited for them. Therefore, to enable to protect yourself from any unexpected health related expenses, opting for health insurance is the right choice.
