Health insurance is a confusing topic. Whether you’re uninsured, self-insured, or insured through your employer, there’s a lot of options and terminology to explore.
This blog post is your ultimate guide to understanding health insurance. It will cover the different types of health insurance, when you need to worry about health insurance, and what to do when you don’t have health insurance.
What is health insurance?
As some of you may know, health insurance or health assurance, is insurance coverage for health care costs, normally, it involves one or more insurers that are brought together to collectively cover the cost of people’s healthcare needs.
Benefits of health insurance Some of the benefits of health insurance include: Regular reimbursements for your health care needs. You will be reimbursed for any cost related to your medical condition, such as medical prescriptions, surgery, hospital costs, nursing care and any other needs related to your ailment.
What is a deductible?
A deductible is what you pay out of pocket before the insurance company kicks in. Some policies have higher deductibles than others but they are generally about equal in the amount you pay out of pocket before insurance kicks in.
Even though deductibles may sound like a lot, insurance companies use a complicated formula to determine the amount you pay. This is based on a family’s overall medical needs and expenses. Some plans have high deductibles that are less than the actual cost of treatment.
How do I compare insurance plans? It is important to compare policies side by side to find the best policy for you and your family. Some people compare prices or policies after purchasing an individual policy.
What is a co-insurance?
If you have been paying through your monthly health insurance, then you already know what a copayment is. A copayment is the insurance company’s share to pay for the treatment of your claim. In the case of co-insurance, an insurer will share the cost of your claim among all policyholders of the same insurance policy.
As an insurance provider, the health insurer will, for instance, pay 75 per cent to 85 per cent of the claim as co-payment for the policy holder with a large medical claim. The remaining amount to be paid to the policyholder will be between 15 and 20 per cent.
What is a co-pay?
What are the benefits of having insurance? Is purchasing insurance an investment or an expense? Where can I get additional information? New 2018 HSA’s Expected changes in the marketplace It’s a good time to evaluate whether your current plan is right for you.
Most brokers will be happy to walk you through your options to make sure you have the right plan for you and your family. In this guide, I’ll cover several health insurance options including: If you are already insured, this guide isn’t for you.
However, if you have questions about your current health insurance plan, please feel free to email me at [email protected] or chat with me on Twitter @jonathancng. You can find the entire guide below: Top 100 Health Insurers Why Is Health Insurance So Expensive?
What is a co-payment?
That’s right. Some basic things are not covered in insurance, but that doesn’t mean you have to pay for those. Health insurance companies offer the following examples of what you shouldn’t pay for but will be reimbursed.
One-time visits to an expensive hospital Normal office visits See a doctor for a specific ailment, like your kids with strep throat That’s not all. For these benefits, you can also make a co-payment, a small (often $5 or so) fee that you pay to the insurance company.
You’ll get the money back if you use all or most of the benefits, and you can still use the benefits without a co-payment if you pay the premiums. Note: Co-pays are also frequently confusing, as they mean different things to different people.
What is an HSA?
An HSA, or Health Savings Account, can help you save money in your pocket and earn valuable tax benefits. Here’s how it works… Benefits of Health Savings Accounts Here’s How It Works You open an HSA by making a contribution of any amount.
And each time you make a qualifying donation, the IRS allows a tax deduction. Contributions to your HSA can be made on a regular basis, but only up to $3,450 in 2017 if you’re single or $6,750 if you’re married filing jointly.
After that, contributions must come from “earned income,” which includes earnings on IRAs and 403(b)s, employer contributions and traditional 529 plans. However, you can include earnings from more exotic investment vehicles, like variable annuities, into the amount you contribute.
By applying the aforementioned advice, you can significantly reduce the costs associated with your health insurance, ultimately making your health insurance coverage more affordable and readily available to you.
Ask about pre-existing conditions and risks in your industry, and when you find a health insurance company that is giving you great deals, keep your eyes open. You could end up finding a very good health insurance company that you wouldn’t have found if you didn’t shop around.