Health Insurance Explained

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In the competitive world today people spend more than half of their lives working day and night for some other reason. Though it gives them good financial rewards and gratification of their desires yet what suffers a big setback is their health.

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In the competitive world today people spend more than half of their lives working day and night for some other reason. Though it gives them good financial rewards and gratification of their desires yet what suffers a big setback is their health. This is because individuals fail to pay significant heed to health, the most crucial aspect of their lives. But being occupied is not the only factor in deteriorating health. Reasons like environment, epidemics, natural calamities, etc. also contribute largely to fading human health.

Keeping in mind the precariousness of human fitness and the immensely expensive medical treatments available nowadays, health insurance has become the need of the hour. Health insurance is an ideal way to care for your health. A health insurance policy enables you to have the best medical therapy for your illness at any point in time.

The American health care system provides four basic health plans. These are HMOs, PPOs, POSs, and Free-for-Service (Indemnity) Plans.

 

1. HMOs Plans- these plans are the least expensive of all and are offered by Health Maintenance Organizations. In case you avail of this plan, you are required to pay for every health-related service in advance in the form of monthly premiums. HMOs cover a spectrum of health problems such as dental, vision, etc. HMOs, provide a list of service providers to all their subscribers. The latter is required to choose from these a so-called “primary caregiver” who will be supervising or coordinating his health care.

2. POS plans- these are HMO plans that give you the freedom to have a health care of your own choice. These plans are a little pricier than the HMO ones. Here it is not mandatory to go with the referrals from your primary care physician. But if you desire to abide by the HMO plan system per se, you can even do that. In case you opt for services outside the HMO or PPO networks, you will be served accordingly.

3. PPO Plans- Preferred Provider Organizations provide health care at discount rates. The PPO plans cost more than the two aforementioned. The PPOs cover a range of hospitals, doctors, clinics, etc. The cost-sharing rate will be less within the network and more outside it. However, unlike the HMO plans, PPO plans allow you to avail services from outside the network.

4. Fee for service plans or Indemnity plans are simple and easiest plans that compensate for each service you avail of on a case by case basis. For instance, in case an emergency situation arises and you go for an ultrasound, the hospital needs to submit a claim to your insurance agency and you will be facilitated with the hospital expenses. But with a myriad of options and convenience, the Fee-for-Service plans to come out to be the most high-priced of all.

For further details, you can surf the net and even get health insurance quotes online. This will save you the time money and energy you would spend consulting an agent.