How do I Choose the Health Insurance That's Right For Me?

Types of Health Insurance

As the cost of health care is rising, it is important for everyone to obtain health insurance. The two different types of health insurance plans are: 1)A reimbursement plan and 2)a managed care plan. Reimbursement plans are also referred to as indemnity plans. Managed care plans are mainly referred to as PPOs, POS, or HMOs.

With indemnity health insurance, you choose your own doctors. The plan pays for your medical bills partially, completely, or up to a specified amount for a specified number of days. A managed care health insurance plan covers the complete cost, minus a co-pay, and generally has more extensive coverage. However, you must use a doctor that is "in network". These companies make agreements with specific doctors that you must use if you want the company's health coverage.

In choosing a health insurance plan, be sure to check for coverages that apply to your individual situation. Hospital expenses should include room, board, and any other expenses that you may incur during your stay. If you require surgery, full surgeon's fees and all surgical expenses should be covered. Also, expenses for doctor visits, whether at the doctor's office or in the hospital, should be covered.
Lastly, the majority of health insurance plans cover all major illness or injury fees.

There may be additional coverages that you may want, such as preventative care, maternity care, prescription medication, mental health care, vision care, and even a dental plan. You will want to check with various insurance providers and see if the options you want are offered.

Shopping for a health insurance provider requires a lot of consideration. You must ask yourself if a particular plan covers all the benefits you require. Does it cover needs that are specific to you, such as maternity care or dental care? Are you able to choose your own doctor or are you restricted to using an "in network" doctor? Will the plan cover only yourself or your whole family as well? What is the policy on pre-existing conditions? What about deductibles and co-pays? What is the company's co-insurance policy? Most importantly, what is the reputation of the insurance company within the industry. These are all questions that require solid and specific answers before you can make your final decision on the health insurance company that is right for you.

Since health insurance is a large investment, there are many factors to consider when choosing between managed and indemnity plans. Each insurance company is unique and requires that you study the many options and plans available before deciding which insurance company is best for your needs. Of course the best company will offer you the greatest coverage and flexibility for the lowest cost. Bear in mind, it is wise to confirm the financial solvency of the company so you know they can afford to pay out when necessary.