We most often become victim of accidents or injuries on daily basis. But many of the people are not aware of the benefits a health care provider, because the cost seems too high or the number of health insurance plans available seems too dismay for them. Due to this reason, people may never consider getting health insurance.
But the benefits of health insurance can’t be overlooked! Health insurance provides compensation to the insurers when they unexpectedly face health problems and need financial assistance on an urgent basis.
What are health insurance benefits?
Health insurance covers most of the medical expenses that are required at the time of hospitalization, follow-up, diagnosis, consultation or different medical exams. Health insurance agencies can be either be publicly or privately owned. They can be sometimes be owned by any non-profit institutions but all these organizations provide insurance policies to either individual or groups.
In other words, health insurance can also be termed as a program sponsored by a company to the employees or an individual. The insured should pay some expenses to get the coverage and the benefits such as fee, deductibles, premium and some out-of-pocket expenses.
Health insurance is like a packed bundle of incessant benefits and there are various types of health insurance for the benefit of people.
Types of health insurance
- Health Maintenance Organizations (HMO)
If you or your loved ones need to visit the doctor or is ever injured in an emergency, it is important to have the right health insurance plan to cover up your costs. HMO has both pros and cons in itself and so you need to be familiar before choosing it!
Under HMO, a medical organization engages in a contract with an insurance provider, allowing the doctor or hospital to offer services to patients at a reduced rate. Remember if you are insured under a HMO, you usually must choose a primary care provider and visit that provider for all of your non-emergency health care needs in order to get coverage. HMOs are generally a low-cost health insurance option and therefore are popular among many people.
Under HMO, a person usually pays only limited co-pay or may even be able to visit the doctor for free! Smart choice for those who can’t afford additional costs.
- Exclusive Provider Organizations (EPO)
The exclusive provider organization or EPO allows you to self-refer to any provider in the network. There is no out of coverage under an EPO health insurance plan, except in the event of an emergency.
If you choose this type of plan, you will have coverage for office visits, the ER, and prescription drugs for just co-pay. Pre-authorization requirements must be met under the EPO as well.
- Point-of-service (POS)
Point of Service health insurance plan have a network of approved medical professionals. As a consumer, this list will give you an idea of who the insurance provider considers a quality doctor. But this has a difference as the customer is not limited to only going to see these supported physicians.
In this type of insurance plan, a consumer can receive care from any doctor without breaching out the terms of their contract. Consumers are enlivened to see a doctor from the network by covering a greater part of their expense with this doctor. But a customer is not limited to one set of doctors!
If you travel often or have a doctor you trust greatly, POS plan may be right for you.
- Preferred provider organizations (PPO)
PPO basically means a health insurance plan offered by an organized health care plan that offers its members a limited choice of hospitals, doctors and specialists and also the ability to seek the services of a doctor or specialist outside the network.
A PPO enters into an agreement with medical doctors and hospitals to provide medical care to their members which these doctor or hospitals will charge them for a lesser fee for the service they render. Another unique feature of PPO is the freedom of the insured to consult with any doctor they wish, even from outside the network of PPO.
Being a client of PPO enables you to receive great savings due to the agreements entered between PPO and wide network of doctors & hospitals.
The different type of health insurance has its own pros and cons. However, health insurance generally comes to shield your finances against high medical bills. So, it is advisable to lend into health insurance plans. Why? Let’s have a clear justification on its benefits.
Health insurance benefits
- Medical Expenditure Coverage
The major idea of health insurance is to get the best medical care without getting any kind of bruise on your finances. What health insurance does is to offer stability against the high medical costs after any treatment or injury. You will have to face hospital expenses, day care procedure, private expenses, ambulance costs and many others. Let health insurance handle all these high cost of yours!
- Detracting Ailment CoverageNow, health insurance also provides insurance for critical illness of a person. The patients who are suffering from lethal diseases like kidney failure, stroke, limb loss and many others can get the insurance coverage. As soon as such critical illness gets investigated from the prearranged list of your policy, you are designated to receive a lump sum amount. This amount covers illness-related treatment costs, daily expenses, or financial liabilities.
- Tax Benefits
Health insurance has some tax benefits too! Health insurance investment allow us to save tax as premiums paid towards your health care policy are qualified for tax deductions under a section of Income tax act. There are different case scenarios for that! If you are under 60 years of age, you are eligible to claim up to 25,000 tax benefits on health insurance premiums not only for yourself but also for your family with an additional tax benefit of 25,000 for parents. In case of senior citizen, you may claim up to 30,000 tax benefits.
Finding the best health insurance is a complex task. Consulting to an expert can help though! Health insurance policies led you to have a good life by providing you the best health care. Knowing that you are covered, means you can get the best health treatment without worrying about the payments or finances.
Go and get you and your family the protection they need with the best health insurance plan!