Medical costs can be somewhat hectic and a great deal to your savings. Spending cash on drugs, treatment, and perhaps surgery can be a terrible thing for you when there isn’t enough cash to spend.

The worst is not having this cash to spend on your health and the result is something worth not saying. That’s why as an individual or family, you surely do need health insurance.

So in this article, I will be educating you on health insurance and the benefits involved when you have one.

What is Health Insurance?

Health insurance is simply a type of insurance that covers part or most of a person’s medical expenses. It can be seen as a contract between an insurer and an insured when the insurer gets to pay the insured medical expenses for a premium.

The money for the coverage of these medical expenses is often gotten from the insured, who pays costs out of pocket and receives reimbursement from the insurer. This simply means that you get a refund of any money you spend on any health-related cases by your health insurance company.

In most scenarios, the insurer (health insurance company) makes direct payment to the provider – which is the hospital or any health facility.


Benefits of Having a Good Health Insurance Plan

Knowing what health insurance is and what it’s all about. It’s high time you get to know the benefits of having health insurance.

No Charges On ICU Room

ICU bed charges are being paid by your health insurance provider. With this here, you can choose to stay in a private room, and all payments connected to your stay there are settled by the insurer.

Hospitalization Expenses

Payments of some medical condition bills are being covered by the insurer. So when you are critically ill or you had an accident, the payment needed for the treatment is covered by a health insurance plan.

Daycare Treatment

Your expenses on daycare treatment at any health facility such as tonsillectomy, dialysis, cataract, etc. are all covered by your health insurance plan.

Maternity Insurance

Some health insurance plans are connected to maternity insurance. This is where expenses from pre and postnatal care are covered by your health insurance plan.

Mental Illness

Psychiatric treatments are also covered by your health insurance plan. So, in case you are going to a mental hospital in regards to your mental illness, you are covered.


Factors to Consider Before Choosing A Good Health Insurance Plan

Now you’ve got to know some of the benefits of a good health insurance plan. It’s time you get to know some of the factors needed in considering a good health insurance plan.

Premiums

Premiums are the money paid to an insurance company for coverage. So to get coverage from a health insurance company, you ought to pay some amount of money which is regarded as Premium.

Most premiums are paid monthly, and when payments are stopped, you are at a big risk of losing your coverage.

Deductibles

Before your coverage starts, there is some money you ought to spend on your health cases (out of pocket), and this amount of money is known as Deductible.

There are different ranges of deductibles depending on your health insurance plan. So, if your deductible is $500, you are to spend $500 out of pocket on your health cases before your health insurance coverage kicks in.

Selecting a health insurance plan with a lower deductible requires you to pay a higher premium and a higher deductible requires you to pay a lower premium.

Co-pay or Coinsurance

Co-pay is a flat fee required to be paid by you for some prescriptions or covered services that are listed at the back of your insurance card.

While Coinsurance is just a percentage of the cost to be paid for a medicine or service.

These are little out-of-pocket expenses to be paid even if you’ve reached your deductible.

Coverage of Medicine

There are some lists of medicine covered by some health insurance companies (your insurer) called the Formulary. If a medicine isn’t listed on the formulary of your health insurance plan, you will have to pay for such medicine or go through a long process of getting the coverage of that medicine.

Again, the list of covered medicines is divided into tiers, with this, you will be able to know the amount of co-pay or coinsurance attached to it.

So keep a note on your medicine that is covered by the health insurance plan offered by the insurer.

Summary

Health insurance is a great thing to consider as an individual or family because it helps cover your medical or surgical expenses. Having a good health insurance plan that goes well with your health cases is necessary.

So you might have to select some various types of plans before picking one but do not worry, as such will be explained and shown to you in our next article relating to health insurance.

 

 

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