Health Insurance Facts

The idea of health insurance was anticipated in the year 1694 by Hugh, the elder Chamberlen. It is an agreement between the insurance group and an individual, which can be renewed either monthly or yearly. It is vital to obtain this insurance for yourself and your family members, as it protects you from lofty health care cost particularly those related to persistent medical problems or hospitalization.

Ways to get health insurance: There are a number of ways to get a health insurance policy, considering your age, monetary conditions and your job status, like

- Health insurance provided by the employer, where it is mandatory for you to pay some part of the monthly premium.

- Health insurance purchased by you, depending on your monetary conditions and

- Health insurance purchased by the government, where government pays for the insurance of either senior citizens, disabled or people without income.

Choosing a health plan

Before opting for a health insurance, there are a number of aspects to be taken care of:

- Premium: The monthly amount paid towards the health plan to purchase the health coverage by the policy holder.

- Deductible: This amount needs to be paid by you before the health insurer’s payment. Keeping a high deductible means you will have to pay more when you make a claim.

- Co-payment: The amount paid by you for each visit to the doctor or prescription taken. 

- Co-insurance: It is a percentage of the total cost you need to pay for any medical condition.

- Exclusions: You are supposed to pay completely for all the uncovered services.

- Coverage limits: There are some health insurance policies where maximum payment limit for health care to be paid by the insurance group is fixed, while the remaining amount has to be paid by you.

- Out of pocket maximums: This is the annual amount you need to pay, apart from the premiums.

- Pre existing conditions: There are some companies that take your pre-existing medical conditions into account, while some companies do not recognize them.

- Waiting period: The time required to wait till the coverage starts.

- Grace period: The time allowed by the insurance companies to pay the premium after the due date and before cancelling the coverage.

- Co-ordination benefits: If you have more than one source to cover for the same condition then the company pays co-ordinate benefits and pays a part of the service. There are some issues to be considered while choosing a health insurance plan, like:

- Which medical conditions are not covered? 

- If you have a medical condition like diabetes, will it be covered right away or will you have to wait for the coverage for more than 6 months?

- Whether your doctor comes in the network of the health plan’s provider list? From the year 2014, health insurance plans will be available in all states. And insurance companies will be prevented from denying coverage for a pre existing condition. Hence, you need a thorough research before deciding on the best health insurance for you.