Individual health insurance is not an easy subject to comprehend for many consumers. In order to make educated choices in finding good insurance that meets your expectations you need to educate yourself on 7 simple basics. These basics are all you need to get you started.
Understanding Lifetime Maximums is essential in order to compare plans. Lifetime maximum is the maximum amount the insurer agrees to pay. They will never pay a dollar more then that maximum. You may have a plan that offers a couple of extra benefits then another but have $2million less in Lifetime Maximum coverage. Comparably it may be wise to sacrifice the benefit for the extra $2million in possible coverage.
If you are looking to lower you monthly rate a good way to do that is going with a high deductible. You must meet all of your deductible before the carrier will share in the cost. So therefore, you take on a bigger obligation they will lower you premium.
The next factor is the co insurance. Co insurance is when you have met your deductible and you only pay a percentage for an additional amount. An example is you pay 25% while the insurer pays 75% up to $3000. Once this amount is met the insurer would then pay 100% of any allowed medical cost within that year.
When you go to the doctor and you pay a predetermined amount this is called a Co pay. Sometimes even labs and x-rays are covered. It all depends on the plan that you are looking at. So to avoid an unexpected bill you should explore this detail. It is something many do not understand.
Many insurance plans include what is called a Preventative exam. As a general rule the benefit allows one preventative exam a year. One thing that baffles consumers when they get an unexpected bill is the limits. Many have a maximum pay out. So if you went for an exam and the expense was $500 and the insurer pays a maximum of $300 you should expect a bill for the remaining balance.
Each carrier has limitations on the expenses they will cover. These are important to look at. They can limit how many times you see the doctor and how much they might pay in prescriptions. They may also set a limitation on certain critical illness expenses.
Another item that is specific is Prescription/RX/Medication coverage. Some plans have a Co pay depending on they type of prescription. Some only offer discounts and some cover absolutely nothing. Many plans also have limits to the amount they will pay per year as noted in #6.
Understanding Lifetime Maximums is essential in order to compare plans. Lifetime maximum is the maximum amount the insurer agrees to pay. They will never pay a dollar more then that maximum. You may have a plan that offers a couple of extra benefits then another but have $2million less in Lifetime Maximum coverage. Comparably it may be wise to sacrifice the benefit for the extra $2million in possible coverage.
If you are looking to lower you monthly rate a good way to do that is going with a high deductible. You must meet all of your deductible before the carrier will share in the cost. So therefore, you take on a bigger obligation they will lower you premium.
The next factor is the co insurance. Co insurance is when you have met your deductible and you only pay a percentage for an additional amount. An example is you pay 25% while the insurer pays 75% up to $3000. Once this amount is met the insurer would then pay 100% of any allowed medical cost within that year.
When you go to the doctor and you pay a predetermined amount this is called a Co pay. Sometimes even labs and x-rays are covered. It all depends on the plan that you are looking at. So to avoid an unexpected bill you should explore this detail. It is something many do not understand.
Many insurance plans include what is called a Preventative exam. As a general rule the benefit allows one preventative exam a year. One thing that baffles consumers when they get an unexpected bill is the limits. Many have a maximum pay out. So if you went for an exam and the expense was $500 and the insurer pays a maximum of $300 you should expect a bill for the remaining balance.
Each carrier has limitations on the expenses they will cover. These are important to look at. They can limit how many times you see the doctor and how much they might pay in prescriptions. They may also set a limitation on certain critical illness expenses.
Another item that is specific is Prescription/RX/Medication coverage. Some plans have a Co pay depending on they type of prescription. Some only offer discounts and some cover absolutely nothing. Many plans also have limits to the amount they will pay per year as noted in #6.
About the Author:
For fantastic service Agent Jeff Cline is ready to help you with your individual health insurance needs. Broker Jeff Cline will help you with any health insurance needs, even travel medical insurance for your exciting trips you have planned. Contact us 365 days a year. Our toll free number is 866.526.9669
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