What Do I Really Need to Know about Health Insurance?

Whenever you tune into politics, there’s always someone talking about the state of health insurance. No matter who you hear on the subject, one thing is clear. Whether you’re looking at the federal system or private cover, every element of medical costs is going up faster than the cost of inflation. Why is that? Well, it’s the mixture of public service and the profit motive. The pharmaceutical industry is committed to maximizing the dividends for stockholders. It’s not their job to offer financial support to the patients. Only states can do that out of tax revenue. Similarly, private hospitals and the insurance companies rely on private capital from investors who always want a return on money invested. And the health providers themselves naturally want a reasonable salary given the time it has taken to get qualified. The consequence of all this is that health care premiums have been going up very quickly.

More people are forced into gambling with their own health because both the medical insurance premiums and the treatments themselves no longer seem affordable. Many wait until their conditions have worsened to an emergency so the hospitals will then treat them. That desperation brings people to sites like this because they can get multiple online quotes and find low-cost health cover more easily.

So what kind of individual health insurance plans are there? There are two main varieties. The first is known as an indemnity or reimbursement plan. This allows you to pick your own physician and it will pay some or all of your medical expenses up to a maximum per day for a given number of days. The second is a managed care plan, e.g. Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs) and Point of Service (POS) plans. These are more generous because you join a group and so get economies of scale when everyone uses the same physicians and care facilities.

Whichever kind of plan you look at, make sure it will give you the cover you really need. So don’t be hypnotized by the big ticket items like surgeon’s fees and hospital bills. Be practical. What prescription drugs are included; how often can you see your physician and what level of co-payments is involved? Is preventative care included? There are a list of very necessary things you need to see included in a plan before you buy. Look after your own and your family’s interests. Make sure the plan you choose is good value.