A seemingly minor accident or illness causes thousands of dollars in medical bills. Something more major can literally leave you bankrupt.
Health insurance plans are often standard in terms and thus it is difficult to customise them to your personal needs. The key therefore is to identify what your healthcare needs are and formulate a plan to manage any such risks properly. The choice of plan will utlimately vary as different conditions such as your health and family conditions vary. But you have to watch out as many differences exist between policies. The key difference lies in what conditions and illnesses are covered and what are not. The worst thing that could happen is thinking you are covered for an illness like cancer when the policy stipulates that you are not. It pays to take some time to go carefully through your policy. Policies also determine how much the company will pay for your expenses and how much you are liable for. Terms in the policy that you must take note of are deductibles, co-payments, stop-loss provisions and the maximum amount in benefits that the patent is entitled to.
1. Deductibles
Deductibles are amounts a patient pays out of his own pocket before the insurance company starts ot pay their portion of the total bill. Deductibles vary in amount, depending on the policy. Of course the higher the deductible, the cheaper the policy.
Generally for the young, choosing a high deductible makes sense as it substantially reduces the cost of your policy. But if you are older or have a large family, perhaps you should consider a lower dedcutble to reduce your medical expenses.
2. Co-payments
This is the portion of the bill htat you will pay on top of the deductible. Most healthcare policies have a co-payment of about 20%.
3. Stop-loss provisions
This is the point where your liablility ends and you pay nothing above it. The insurance company will be liable for the rest.
4. Maximum benefit amount
This is the total amount that the insurance company will pay under the plan you opt for. Understanding the mechanism of these terms will enable you to estimate how much of your medical expenses you would need to pay out of your own pocket.
Health insurance plans are often standard in terms and thus it is difficult to customise them to your personal needs. The key therefore is to identify what your healthcare needs are and formulate a plan to manage any such risks properly. The choice of plan will utlimately vary as different conditions such as your health and family conditions vary. But you have to watch out as many differences exist between policies. The key difference lies in what conditions and illnesses are covered and what are not. The worst thing that could happen is thinking you are covered for an illness like cancer when the policy stipulates that you are not. It pays to take some time to go carefully through your policy. Policies also determine how much the company will pay for your expenses and how much you are liable for. Terms in the policy that you must take note of are deductibles, co-payments, stop-loss provisions and the maximum amount in benefits that the patent is entitled to.
1. Deductibles
Deductibles are amounts a patient pays out of his own pocket before the insurance company starts ot pay their portion of the total bill. Deductibles vary in amount, depending on the policy. Of course the higher the deductible, the cheaper the policy.
Generally for the young, choosing a high deductible makes sense as it substantially reduces the cost of your policy. But if you are older or have a large family, perhaps you should consider a lower dedcutble to reduce your medical expenses.
2. Co-payments
This is the portion of the bill htat you will pay on top of the deductible. Most healthcare policies have a co-payment of about 20%.
3. Stop-loss provisions
This is the point where your liablility ends and you pay nothing above it. The insurance company will be liable for the rest.
4. Maximum benefit amount
This is the total amount that the insurance company will pay under the plan you opt for. Understanding the mechanism of these terms will enable you to estimate how much of your medical expenses you would need to pay out of your own pocket.
