| Health Insurance - Do You Truly Have A Good Understanding Of All Your Options? |
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| Written by Chimezirim Odimba |
| Friday, 09 April 2010 17:19 |
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There are many options open to you if you are shopping for health insurance. You'll get anything from plans that over very specific coverage to others that offer very extensive coverage -- And so do their rates also differ. In an ideal situation, your health needs should determine which you choose, however in reality, your purse seems to have an equal influence, if NOT more. Here are options in summary...
Health insurance shoppers have very many plans they can choose from -- over 13,000 as at the time of this writing. The fact is that there are over 13,000 health plans available for shoppers to choose from. You'll get anything from plans that over very specific coverage to others that offer very extensive coverage -- And so do their rates also differ. In an ideal situation, your health needs should determine which you choose, however in reality, your purse seems to have an equal influence, if NOT more. Let's briefly show you options available to you... Health care plans fall into two major categories: Traditional health insurance and managed care coverage... Traditional health insurance: What you get here is a standard insurance program that takes care of your health matters. The choice of who provides health care is entirely up to you. That is, your insurer does NOT choose your doctor. No one will also restrict you to a particular health facility or hospital. The usual process is to pay your bills and have your insurance carrier make reimbursements when you submit your bills. On the other hand, the health care provider could also submit the bills directly to your insurer and await payment. With traditional health insurance, you have the greatest flexibility in your choice of health care provider. However, it's also important to point out that it's usually much more expensive than other plans. Managed Care Coverage: This comes in different variations. In spite of their differences, they have certain basic features: They are usually a combination of health care service delivery and financing. You don't have total control over your health care providers. However, you also get to pay far less. Here are the different types of managed care plans... 1. HMO or Health Maintenance Organizations: These have contracts with certain health care providers. Access to the network of providers within an HMO is then possible once you pay a certain amount monthly. There is usually a predetermined copayment for seeing a doctor, emergency room visits and prescription drugs. A member of an HMO can't get any reimbursement if they use a provider outside the network. 2. PPO or Preferred Provider Organization: This is an organization that is formed where a traditional health insurance provider gets into contract with a group of health care providers in order to reduce cost to its members. Insurers get the advantage of deliver better value to their customers while doctors in the organization get many more patients and prompt payments. Members choose the health care provider they prefer. The downside is that the member would have to pay more if the health care provider they use isn't part of the network. 3. EPO or Exclusive Provider Organization: Like is the case with a PPO, in this arrangement too an tradition health insurance provider is in contract with a network of health care providers. The difference between the two is that a member of an EPO does NOT have the freedom to use a health care provider outside the network. 4. POS or Point Of Service Plans. Insured members can decide to get health care from the network's providers or outside at the point of service (hence the name). However, they must pay deductibles and coinsurance cost whenever they go outside the network. Also note that those who choose to use health care providers outside the network get reduced coverage. Irrespective of which plan you find most appropriate for your needs, you'll have to get quotes and compare the various unique plans each shows you in order to get bigger savings. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Can you spare just 8 minutes? Then you can save $100's while maintaining superior coverage at these sites: medical insurance quotes and cheap health insurance quotes. Chimezirim Odimba is the go-to guy for insurance savings tips. |