Healthcare insurances are highly debated nowadays. Generally speaking, an employer should provide healthcare insurances to his or her employees. The group healthcare insurances are a lot cheaper compared to individual policies, therefore this can be regarded as a win-win situation: the employee gets insured while the employer does his duty. Nevertheless, if you are unemployed or you work on your own, you should know that a private medical health insurance has numerous advantages that must not be neglected. These policies can not only cover expensive medical procedures, but they can also help you pay for dental care. In this article I will present you the most popular types of medical health insurances, their main advantages and disadvantages as well as useful tips that will help you decide on the type of insurance that is the most suitable for you.
Why Is Healthcare Insurance Important?
Unexpected situations occur all the time, and when they do, you need to be prepared for them. Regardless if you need money for an expensive surgery or you need an extensive dental procedure that costs thousands of dollars, the proper healthcare insurance can help you with the payment. The insurance can provide the entire sum of money or it can only pay for a part of the medical expenses. Even so, a healthcare insurance should be taken into account, otherwise medical bills can leave you in serious debt.
A good healthcare insurance stimulates you to get regular blood tests and screenings, and it is vital to monitor your health on a constant basis. This way, you can discover any medical issues that can become life-threatening in the long run, and the policy can help you pay for the necessary treatment. This is known as “preventive care”. It is always better to prevent a disease or a condition than to treat it, and this is where the preventive care concept steps in!
Despite the fact that they are very useful, it must be mentioned that no medical health insurance is universal: these policies cover specific procedures and provide payment for certain prescription drugs. This is why it is essential to thoroughly read the terms and conditions before purchasing a policy.
Types Of Health Insurance
Putting it in a nutshell, there are three main types of medical health insurance available: the fee-for-service policy, the Health Maintenance Organizations (also referred to as “HMO”) and the Preferred Provider Organizations (or the PPO).
The fee-for-service policy is actually a traditional healthcare policy. Basically, companies pay certain fees for the medical services provided to insured employees. However, companies do not pay the entire sum, you need to pay a monthly fee as well. The main advantage of this policy is that it provides you flexibility: you can choose any doctor you wish and you can change your doctor whenever you want, if you are not satisfied with the provided services. There are two main types of fee-for-service insurances: the basic insurance (which covers basic medical services, such as prescribed medication) and major insurance (which cover the medical expenses of serious, long-term diseases).
The HMOs are the most popular group health insurance policies for small companies. They are very popular nowadays due to the fact that they are less expensive compared to other similar policies and they cover a wide range of medical expenses. Moreover, this type of insurance also provides preventive care, which is essential and should not be ignored. On the other hand, compared to the previously mentioned medical health insurance, the HMO does not provide you as much flexibility (meaning that you have limited choices of doctors).
The PPO insurances somehow resemble the HMO policies. The sole difference is that the PPOs include specific services which are found in the indemnity plan. They are cheaper and you can also benefit from discounts if you decide to visit a doctor that is outside of the Preferred Provider Organizations.
Advantages And Disadvantages Of The Medical Health Insurance
As stated above, this type of insurance has numerous benefits that should not be neglected. Even so, millions of Americans do not have a health insurance at the moment. It must be mentioned that besides the numerous benefits, this policy has its disadvantages as well.
Perhaps the biggest advantage of health insurances is that they provide preventive care, which can detect dangerous diseases in incipient stages and treat them efficiently. Besides the fact that this feature can be a life saver, it is also very cost-effective: discovering and treating a disease sooner is undoubtedly cheaper than treating it when it starts to advance.
Another important advantage is that with a health insurance, you can treat your medical problems in a fast and efficient manner. This is possible due to the fact that this insurance provides you fast access to high-quality medical services, therefore it can be regarded as a time-effective policy as well.
Regarding the main disadvantages of a medical health insurance, one of them is that these policies can turn out to be quite expensive. Based on the type of insurance as well as the coverage it provides, you can pay a significant monthly fee. Besides, your choices of doctors and hospitals may be limited, depending on the type of health insurance that you have. In the end, health insurances can save your life, despite their price.
Another downside is that health insurances only cover specific medical expenses. This way, if you do not read the terms and conditions carefully, you might end up in the unpleasant situation when you rely on your insurance just to find out that it does not cover your medical bills. In addition, another important fact that you must pay attention to is that a private health insurance covers certain medical services that the public health plans may not cover.
To summarize, these are the basics of health insurance. They are absolutely indispensable, and it is definitely better to have this policy and not need it than need it for your medical bills and not have it. You have several options where you can choose from, therefore take your time to check the main advantages and disadvantages of each one of them and choose the policy that best meets your needs!