Health Plans: How they work and why you should have one

How Health Plans Work and Why You Should Have One

No one plans to get sick or have an unexpected accident, yet most individuals will need medical care eventually. Medical insurance companies like United Health Insurance and Cigna Health Insurance can help cover the cost and offer you protection from unexpected major medical expenses.

Major Medical Insurance When You Require Treatment

Major medical insurance or a health plan is an agreement between you and your insurance company. You find and purchase a plan that works best for you and your family’s lifestyle and in return the insurance company agrees to pay a portion of your health care expenses if you or a member of your family becomes ill or has an accident.

There are various advantages of having major medical insurance. Many plans available in the market right now offer free precautionary care such as vaccinations, screenings and appointments. They additionally cover part of the cost of prescription drugs.

Health Insurance Safeguards You from High, Unforeseen Costs

Were you aware that the normal cost of a 3-day stay at a health care facility is $30,000? Or that the treatment required to repair a broken leg can be $7,500 or more? Having a health plan could help protect you and your family from unexpected expenses like these.

How Medical Insurance Works

When you have an insurance policy, there is a set amount that you are responsible for and once you have met that amount the insurance company then covers the rest.

What is an Insurance Premium?

An insurance premium is a set monthly amount that was decided when you purchased your health insurance plan. This is the amount that you will pay every month to the insurance company in order to have medical coverage and it must be paid even if you do not have any medical expenses that month.

What is a Deductible?

If you do require healthcare, an insurance deductible is the amount that you are responsible for and must pay before the insurance company begins to pay their share. As soon as you meet your deductible, the insurance company starts to cover some of the expenses of your treatment. Some health plans have reduced deductibles, like $250 while others have larger deductibles such as $2000 or $5000. Health plans also provide precautionary services, and occasionally various others, prior to you meeting your deductible.

What is a Copayment?

A copayment is a fixed amount you’ll pay for medical treatment after you have actually met your insurance deductible. For instance, after meeting your deductible you may pay $25 for a visit to the doctor’s office rather than the $150 you would pay if you didn’t have health insurance. Your insurance company then pays the $125 difference.

What is Coinsurance?

Coinsurance is similar to a copayment, except that it is a percentage of the expenses that you pay. For example, you could pay 20% of the cost of a $100 medical test, so you would pay the first $20 and your health plan will cover the remaining $80.

How exactly does Health Insurance Protect Me?

Medical Insurance protects you from high medical expenses in two ways:

• 1.    Out-of-Pocket Maximums
• This is the complete amount you’ll be required to pay if you become ill. For instance, if your plan has a $3000 out-of-pocket max, when you have paid $3000 in deductibles, coinsurance and copayments, your insurance company will pay for any sort of care that is covered for the remainder of the year.
• 2.    No Yearly or Lifetime Limitations
• Health Insurance in the Marketplace can’t put monetary restrictions on the amount that they will spend annually or over your lifetime to cover crucial health and wellness perks. After you have reached your out-of-pocket maximum, your insurance company must cover your medical care without any restrictions.

Individuals without major medical insurance are vulnerable to these major expenses; this can often lead them to major financial hardship or even bankruptcy.  If you are in need of medical insurance, please contact One Source Benefits at www.onesourcebenefits.com for affordable medical coverage.