Health Insurance Plans


Health insurance, otherwise known as medical insurance, is a kind of insurance which covers either a portion of or the entire risk of the individual incurring healthcare costs. Like all other forms of insurance, however, healthcare risk is also risk among many people. Some people have the mentality that just because they have never needed healthcare, they are uninsurable. That is simply not true; just because you are healthy now, you cannot be considered insurable until you need healthcare. You can only be insured if you currently suffer from some kind of pre-existing medical condition.

The insured’s dependents are the ones who will be insured under a health insurance plan. This means that if your spouse, parent, or sibling is covered, then their family will also be covered. If you or a member of your family is unable to pay for their own healthcare expenses out-of-pocket in a timely manner, then they can file a claim and you can receive payment from the insurer. This payment is typically tax-free, which makes it easier to keep up with medical bills.

Every individual will need to pay some sort of premium when joining a health insurance plan. Some people choose to pay more than the average premium in order to get more benefits. There are different ways to calculate the amount you will need to pay every month. If you are a person who is younger than 65 years old, you will be required to pay higher premiums compared to those who are older. One of the things that the insurer takes into account is your age.

The type of health insurance premium you will be required to pay will also depend on whether you get a Medigap policy or Term policy. If you get a Medicare supplement, you will be required to pay a co-payment. The amount of co-pay that you will have to pay will also be determined by how much the insured individual is able to pay for deductibles and coinsurance. The deductible will be the sum insured is capable of paying for doctor visits. The maximum out-of-pocket expense that you will be required to pay is the total of your deductible and your co-pay in each visit. In a Medigap policy, the Medicare Part B deductible must be met first before the insurer pays any part of your Medigap premium.

Aside from premiums and deductibles, another consideration for choosing a health insurance plan offers tax benefits. Many people would prefer to have an HSA balance between tax-free savings and actual cash investments in their HSA. The tax benefits that come with this type of plan is dependent upon the classification of your HSA as a high-risk or high-levity account. If you fit into the high-risk category, your contributions to your HSA are tax-free and you will enjoy higher tax benefits than if you had made contributions to a traditional savings account.

Lastly, when choosing a health insurance plan offers comprehensive insurance coverage. This term encompasses all of the medical and hospital costs that are not considered emergencies, such as prescription drugs, surgical procedures, and maternity and vision care coverage. When you are offered coverage that covers “all” of these categories, you are buying “comprehensive” coverage. Many times, an HSA balance between deductibles and premiums and adequate coverage can help you determine which plan offers the most comprehensive benefits at the best cost.