Health insurance is expensive, which is why so many people are tempted to forego it, especially if you’re relatively healthy and don’t go to the doctor often. Unfortunately, this isn’t a good idea because you never know when a serious illness or a medical emergency may occur. When they do, the costs add up quickly.
Which plan fits your needs?
Health insurance isn’t a luxury. It’s a necessity. Once you realize this and you’re ready to prepare yourself for a medical emergency, there are some questions you should answer so you can find the right policy for yourself:
- How’s your health?
- Do you need to see a doctor frequently? Consider how much you spent on copays for office visits, lab work, urgent care, and prescription drugs last year.
- Do you engage in risky sports or occupations?
- What are your priorities? When you frequently see your doctor, you’ll want a plan with lower copays and deductibles. However, you’ll want a plan with lower monthly premiums if you’re on a tight budget.
- What are your coverage needs?
What types of health insurance plans are available?
Many health insurance options are available today, even if you’re only concerned about a possible medical emergency. Fortunately, most of these plans can be categorized into a few different types.
Indemnity (a.k.a., “Traditional”) or Fee-for-Service Plans
This is the original type of insurance that allows you to see any doctor, hospital, or specialist you’d like. However, you’ll pay for more of your expenses yourself, have a deductible, and you may only receive 80% coverage on any of your remaining medical bills. If you don’t see doctors frequently and you want to be prepared for a medical emergency, you may wish to consider this plan.
Managed Care Plans
These plans include Health Maintenance Organizations (HMOs), Point-of-Service (POS), and Preferred Provider Organizations (PPOs). They only work with providers who are in a closed network, but with a PPO and POS, you can see providers outside of your network and self-refer to specialists. On the other hand, HMOs are inexpensive, but they don’t cover out-of-network visits. You must also have a doctor refer you to a specialist.
High-Deductible Health Plans (HDHPs, a.k.a., “Catastrophic Plans”)
These are the lowest cost plans you’ll find. The reason for the name is that you must pay a lot of money out-of-pocket before your coverage begins. Therefore, you should put some money aside each month in a health savings account (HSA). This allows you to contribute tax-deferred funds to an account that you can use to pay for your deductible and other care costs.
With this plan, you’re responsible for the cost of medical care until you satisfy the deductible. Afterward, the insurance picks up the remainder of the bill. Since you never know when you’ll have a medical emergency, this is a better option than not having any insurance because it’ll still reduce the amount of money you’ll pay for such bills.
Where can I find affordable health insurance?
This is an important question because an unplanned medical emergency can be the quickest road to bankruptcy today. Therefore, you need to plan for the unforeseeable events that happen in life. The best way to do this is to get help with selecting the right health insurance plan. Gemini Insurance Company in Palm Harbor, FL, has all the information you need regarding what health insurance options are best for you. We’ll help you find an inexpensive option so contact us today.
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