Health insurance helps to cover medical costs for injuries, illnesses, and other circumstances. Because most accidents or illnesses can occur at any time.
Medical expenses can often be extremely high therefore, they are the number one reason for bankruptcy.
To obtain access to hospitals and doctors who have typically already agreed to reduced medical fees with insurance companies.
Most people get their health insurance coverage through an employer, group plan or individual health insurance covers medical expenses individually.
The health insurance companies vary tremendously in what they offer. There are many benefits to having medical coverage.
Medical bills can quickly add up when an unexpected illness occurs. With an individual medical insurance plan, you have more control over what is covered and what is not covered.
Most health insurance policies also cover prescription drugs.
Prescription medication is another type of coverage that can become essential. Without a good prescription drug plan, individuals would be unable to purchase the prescriptions needed for medications that are necessary.
This can also become a financial burden as those individuals who do not have the coverage can not purchase the medications at the retail stores that offer the coverage.
With mediclaim insurance, the policyholder is able to choose which medications are covered and how much is the deductible for each type of coverage.
Types of Plans
Both individual and family health insurance plans can cover different aspects of medical expenses. Some medical procedures are not covered by any type of plan.
When this is the case, the insured needs to find out what exactly they need to cover in order to make the final decision.
There are two types of deductible which are coinsurance plus payment. The higher the coinsurance percentage, the lower the monthly premium will be.
Buying Health Insurance Company Sponsored Plans Vs Non-Sponsored Plans
There are a few key differences when it comes to buying health insurance plans through a company as opposed to an independent agent.
First, the former requires you to buy it from a company that carries Medicare Part B. Most of these companies have managed care plans, which means they will provide medication coverage as well as coinsurance and deductibles.
In addition, there will likely be a monthly administrative fee that will be taken out of your monthly paycheck.
The advantage of these types of plans is that you don’t have to worry about going without the medication coverage.
However, you must be careful to not let the monthly fees become too high because you will end up sinking even further into debt.
Buying Health Insurance by Self-Employed
Purchasing a mediclaim plan through an independent agent or company means you will be responsible for all the costs out of pocket.
The premiums will most likely be higher since the company has to cover the cost of providing the benefits. With this type of coverage, you’ll have to find a lump sum assured by the company if you ever become ill or injured, but you’ll still be responsible for the rest of the costs.
Taking Out Whole Health Insurance
You can also take out a short term policy or a long term policy with a particular health insurance company.
Typically, a short term policy covers you just for a specific amount of time, usually one month. You’ll then need to get a separate, long-term policy to cover the remaining months of your illness.
This type of coverage works best if you are only sick once in a while. The monthly cost for this sort of plan is usually lower than the costs associated with purchasing Part A and B of Medicare, as well as supplemental insurance coverage for catastrophic illness.
The downside is that you will be responsible for any costs associated with taking a drug in a month where you have an illness.
Dependent Care Insurance
Some insurance companies offer dependent care insurance, which pays a monthly premium to the insurer in case the insured has to take care of a family member.
In order to get this coverage, you’ll generally need to sign a contract with the insurance company, which means you will be signing a contract for twelve months or more, depending on the contract.
Your dependents will be covered during this period as well, so the total cost of the insurance premium will include the costs of your dependents as well.
Again, this type of insurance premium is usually quite low, so you’ll end up saving money in the long run if you do need to use it.