Buying an individual health insurance is a very important decision to make, and it can either end up a disaster or turn out to be a good investment. Before purchasing an insurance package from any company, it is best to find information on the amount and type of healthcare costs, covered by the chosen plan.
A visit to the doctor can be very expensive, and few persons have the means to pay every time. However, you can choose between two types of plans: scheduled and comprehensive health insurance. With the first type, individuals get access to a more basic package of services, covering prescription drugs or visits to the doctor. As of recently, scheduled plans have been called association or mini-med plans. These require membership in an association that functions for some other purpose, apart from selling insurances. The comprehensive health plan covers some percentage of the physician and hospital charges after co-pay or deductible is met by the insured person. These plans offer a large array of benefits and are typically expensive. Remember, however, that different laws apply in every state, and it is best to get information on the requirements for your particular location.
Do not Leave Your Current Plan
Every person is protected by the government when switching from one insurance plan to another; yet, it is best to exhaust all benefits of your current plan before changing to an individual plan. As state laws may apply, make sure you wait for about 60 days after the old plan has ended and then apply for a new one.
Before you buy an insurance package, compare different packages and their coverage limits, premiums, out-of-pocket maximums, deductible, etc. Visit companies that offer these services and ask if they offer an explanation of benefits. This document explains what is covered in terms of medical services and how the provider has come up with the payment amount.
Many people opt for insurance policies that require low premiums as to ‘save’ money. However, it is low because you have to pay for other expenses when accidents occur. You have a plenty of medical insurances to choose from: Blue Cross & Blue Shield Plans, indemnity or fee-for-service, managed care, health maintenance organizations, network-based managed care, etc. In addition, there are new types of insurance or medical plans called consumer driven health care.
When you are choosing an insurance package, do not just settle for the first policy that comes your way. There are other types of non-medical health insurance you can opt for. You can look at long-term health insurance and disability income packages. The first type covers the expenses for long term custodial care, compensating for or minimizing losses that are due to chronic illness, disability, or age. These policies are designed to replace a portion of the income if the policy holder is unable to work. The disability income insurance is intended for individuals who cannot provide for themselves due to illness or injury. Private individual insurance packages can be purchased on an individual or group basis.
After you select an individual health insurance, it takes discipline to make payments, covering the premiums. Make sure you allot a portion of your income to cover monthly payments and avoid being late.