We asked our source at Loans about the best way to choose health insurance. Insurance can be very difficult to understand because there’s so much fine print that has given the industry a very bad name. There are so many cases of people taking insurance only to have their claims rejected the day they need to use it. Yet, most people say that they were not aware of the stipulations in the contracts. This makes people afraid to take any kind of insurance. However, it is important to take health insurance because you can get ill or get into an accident and need money for treatment.
So how do you go about choosing your health insurance?
Understand your needs.
If your employer gives you health insurance, you may not need to worry too much about getting one on your own; however, you may still want to get an alternative plan especially if your insurance coverage does not include your family. Employers will also not give you the best cover because they are saving on costs.
Shop around for a good cover, there are many types of cover available in the market and it is important that you look for one that gives you maximum benefits at a good price. The plan should have a good list of doctors in its network as well as the hospitals you can utilize in case of an illness or accident.
Choose the type of insurance coverage you want.
There are different kinds of covers available in the market; one of them is indemnity plans, which allows you to visit any doctor without needing a referral. The insurer will pay a portion of the charges and you pay the rest. This makes them very flexible because you do not have any restrictions on the provider you can visit. However, indemnity plans are more costly and in some cases, you will need to pay the provider and make a claim from the insurance company which can be inconveniencing.
The other type of cover available is the Health Maintenance Organisations or HMOs. A group of professionals can come together to offer special packages to insurance companies. You will deal with one primary physician who depending on the nature of the illness will refer you to the other physicians within the network. HMOs are cost friendly but you will not be able to enjoy the benefits of care from health care providers who are not within the network. They also generally deal with outpatient cases and so you may not access the right kind of care.
The third type is the Preferred Provider Organisations (PPOs). These operate like HMOs but you are able to get medical attention from health care professionals who are outside the network. This, however, means that your benefits may be less and you may pay out of your pocket, which will not be the case if you use the providers within the network.
It is important to understand your health insurance needs and to focus on the type of plan you want. Also, think about the budget you have because it will help you make a decision based on what you can afford.
How to choose a health insurance plan.