It is very important that you have health insurance, or you will have to experience a lot of mental stress if you are ever injured or sick. There are many types of health insurance available, which can make the task of finding the best one for you difficult and overwhelming. However, you are not alone. What type of health insurance is available?
If my employer asks to get health insurance, which one should I choose? What does health insurance cover? Will health insurance pay for all your medical expenses if you are too ill to work?
These are some common questions asked by people and are very necessary to answer. Let us look at the different types of health insurance available so that you can compare plans, get answers to your questions, and choose the best plan for yourself.
What are the different types of health insurance?
In today’s time, there are many different types of insurance plans available that you can buy to cover your health and routine visits to the dentist and doctor. The types of health coverage include:
1. Employer-sponsored
This type of health insurance is also known as small group coverage. You usually get this type of insurance through your employer in an office setting. You and your employer split the cost of the monthly premium paid to the insurance company, and you both pay cost-sharing payments.
2. Individual and family insurance
This type of in home health care insurance covers your health by the premiums you pay yourself. This type of insurance is also called the affordable care act plan and is available to everyone. You can buy them directly from the federal or state market, health insurance companies, or online brokers.
3. Medicare
Medicare is a type of federal health insurance that makes sure people aged 65 and above are protected. Beneficiaries of this insurance can opt for getting their coverage through a private insurance company that offers a medicare advantage plan or through the government. If they wish to stay with the original medicare insurance, then they can get extra coverage.
4. Short term insurance
A temporary or short-term health insurance can help cover any gaps that might be there for short periods of time.
5. Dental health insurance
The majority of health insurance does not cover visits to the dentist. In order to get your dentist visits covered by insurance, you need to purchase a separate dental insurance plan. With this type of insurance, you can easily get your teeth cleaning, root canals, and other dental procedures done.
6. Vision
The majority of health insurance also does not cover routine visions care. In order to get coverage for things such as contacts, glasses, and eye exams, you need to purchase a separate vision plan.
7. Other
In addition to these common types of health insurance, there are some other types available as well that have special criteria, and only some people can qualify for it.
Insight into key health insurance terms
The health insurance industry consists of complex jargon that you will come across whenever shopping for coverage. Health insurance may be daunting for a beginner, and therefore, it is important to define the key terms:
Coinsurance:
This is a type of cost-sharing payment that is in the form of percentages. You mostly make these out-of-pocket when utilizing specific health care services.
Copay:
Copays are another type of cost-sharing payment that you might have to do out-of-pocket upon receiving specific medications. These usually come in flat rates, i.e., $20 per doctor’s appointment.
Premium:
This is the amount of money one pays to their health insurance company every month to stay in the plan and keep in coverage.
Deductible:
This amount must be paid out-of-pocket in order for the health insurance to pay for your health care needs.
Out-of-pocket maximum:
This is the maximum amount that you must pay out-of-pocket for health care within a year. Ahead of this, the insurer pays for all covered costs for the rest of the year.
What is the cost of health insurance?
The cost of health insurance plans tends to vary significantly. The difference in cost depends upon the type of plan one is opting for and the level of coverage it provides. Same health insurance plans may have a different cost year after year as the costs of plans change yearly.
According to statistics, the average health insurance premium is $485 for individuals and $1229 for families. However, actual prices may vary and depend upon a number of factors, including age, zip code, gender, etc.
It is also extremely important to keep an eye on one’s monthly payments while choosing a plan. Even in cases where one chooses a lower premium plan, there might be a higher deductible, which might mean paying large medical bills before the insurance becomes active. Make sure to consider your budget, along with your past and present health needs.
These factors must be kept in mind when choosing a plan. If you are someone who makes hospital visits often, you may save money by choosing a plan that has a lower deductible and a higher monthly premium.
If in case of doubt, you could always get in touch with a licensed health insurance agent to guide you through the process, to help you make the right decision.
Why you should get health insurance
Having health insurance offers many benefits. Health insurance plans offer protection from financial losses the same way that car and home insurance protects your vehicles and house respectfully. Even if you are a healthy individual, you never know when you might fall ill or get into an accident.
No one gets into an accident on purpose. The trip to the hospital that follows is very financially straining and can cost more than you might expect. Consider these facts to better understand why you need health insurance.
· A broken leg from falling can cost up to $8000
· The average cost of staying in the emergency room for an adult is about $800, exclusive of the test and hospitalization fee. All these charges combined can cost up to $1000.
· The average cost of giving birth in a hospital is up to $8900, and over $11000 for C-section delivery
· The total cost of a hip replacement surgery is around $33000.
These figures and examples are an eye-opener to how expensive medical treatments are. In order to protect yourself and your loved ones from financial losses, it is important that you invest in health insurance today.