Get Free Health Insurance Quotes!

Guide to Understanding Health Insurance

 

Are you among the 15% of Americans who currently have no health insurance? Do you have health insurance, but wonder if you’re paying too much in premiums or whether your deductible is too high? Understanding health insurance plans can sometimes seem like trying to navigate a maze. There are several different directions you can turn initially, but not all of them will lead you to your desired finishing point. If you choose the wrong plan, you could place yourself and your family in financial hardship in the event of expensive medical treatment needs. While the learning curve can seem daunting, understanding health insurance basics is not as difficult as it may initially appear.

 

Guide to Understanding Health Insurance: Employer Sponsored Plans

There are three basic types of health insurance plans: employer sponsored, private, and government sponsored. Employer sponsored plans are group insurance plans offered through your workplace. By insuring large numbers of people through the same provider, employers are often able to get better rates, meaning a lower premium for you. This is the most common type of health insurance available for the average person.

 

Guide to Understanding Health Insurance: Private Plans

However, some people are unable to get insurance through an employer. They may work for a company that is too small to offer insurance, they may be unemployed, or they may have preexisting health conditions that prevent them from being approved for the plan. People in these cases can and should look into private health insurance options. Individual plans vary based on your circumstances. You’ll want to take a close look at the benefits and costs of each plan you’re considering before making a decision as to which one is right for you. In addition, consider the nature of the plan. PPOs, or preferred provider organizations, allow you to choose your primary health care provider within a specified network. All doctor visits within the network are covered at a certain percentage. Visits to healthcare providers outside the network are still covered, but at a lower percentage, meaning you’ll have a higher co-pay.  HMOs, or Health Maintenance Organizations, allow you to choose a primary care provider within the network and require a referral from that provider for any specialist visits. Healthcare providers outside the network are not covered by these plans. Fee For Service plans allow you to choose any health care provider for a particular service and then submit a claim to your insurance company. These plans often have significantly higher deductibles and co-pays than other plan options.

 

Guide to Understanding Health Insurance: Government Sponsored Plans

The third type of health insurance plan is the government sponsored plan. These plans include Medicare and Medicaid for the elderly or disadvantaged as well as workers’ compensation and veterans benefits. If you fall into any of these categories, you’ll want to check into the requirements for your state. However, bear in mind that you can often get better coverage through a private program if you are able to pay the premiums associated with individual coverage.

 

Guide to Understanding Health Insurance: Which Plan is Right for Me?

Understanding health insurance costs is an essential part of choosing the best plan for yourself or your family. Your first step should be to establish a budget. Determine how much you are willing to spend each month for health insurance coverage and bear in mind that this figure will need to include both the premium and the deductible. Second, compare quotes across several different companies. Remember that even if your employer offers health insurance, it may not be the most cost effective option for you. The best way to compare quotes is to utilize a centralized website that can gather quotes from the companies of your choice for you. By entering your zip code at the top of this page, you can receive a free quote comparing costs among several companies of your choosing.

You don’t have to be lost in the maze of understanding health insurance. By taking a few moments to learn about the available options, you’ll free yourself from the obligation of relying on an insurance agent and you’ll be in the best position to choose an option that fits your individual needs.

Health Insurance Definitions