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HEALTH INSURANCE
Choosing the right health insurance policy plays a critical role in your long term health, your
finances and your ability to live and work on a day to day basis without worrying about being able to afford
your medical bills in case of an emergency. Health insurance in the U.S. is incredibly complex, and, depending
on your circumstances, can be very expensive. But health insurance is so important to our lives that many of
us make major life decisions based on the health insurance coverage we can receive pursuant to those choices.
Because of this, it’s important to know as much as you can about health insurance in general, as well as your
own individual circumstances vis a vis your employment status, your health history, the state of residence
and your income level.
WHY YOU NEED HEALTH INSURANCE
The best time to get health insurance is when you are in good health. You cannot predict how much your medical
bills will be in the near or distant future, and medical insurance protects you from unexpected costs and pays
for your routine healthcare that keeps you healthy. If you become seriously ill or are diagnosed with a
terminal condition, the costs of obtaining health insurance become much higher and your eligibility drops
drastically. If you don’t have health insurance, start looking for coverage now.
HOW TO GET HEALTH INSURANCE
There are three main avenues through which you can receive health insurance:
Group Health Insurance – This is the most common method that families and
individuals receive affordable, quality health care. Group insurance policies are offered at a discount
through your employer, trade organization or union and are often considered part of your compensation.
Usually, the employer or sponsoring organization pays a portion of your premium. However, once you leave
the employer or group, you won’t be eligible for group insurance any longer.
Individual Health Insurance - For those who are self-employed or work
for a company that does not offer them health benefits, you can purchase an individual health insurance
plan. This is more costly, since you will pay the full premiums. You’ll have a wide range of choices at a
number of price points, and the burden is on you to get the best deal.
Government-sponsored Health Insurance – Many individuals receive health care through government
healthcare programs, such as Medicare and Medicaid and programs from the Department of Veteran Affairs
and the Department of Defense. Eligibility and coverage typically depends on income level, military
service and other factors.
HOW TO CHOOSE HEALTH INSURANCE
Depending on the type of health insurance programs you qualify for, you’ll have a number of choices to
make in terms of your health insurance policies. The top items you should be comparing are: premiums (monthly
costs for coverage), coverage/benefits (types of procedures that can be paid for and how much is paid),
access to doctors, hospitals and other providers, access to emergency care, out-of-pocket costs (coinsurance,
deductibles and co-pays) and exclusions and limitations. You will also have to choose between indemnity
insurance - which is more flexible in terms of types of procedures, specialists and primary care physicians
that are covered, but requires more paperwork and more out of pocket costs - or managed care, which has a
smaller network of covered providers but lower out-of-pocket costs and less paperwork.
There’s much more to learn about health insurance than is contained in this short article. Make sure you work
with an experienced and ethical health insurance agent and ask plenty of questions, including the specific
regarding the topics covered here. Find out how each health insurance policy differs from the next and take a
close look at what each one covers as well as the cost of the premiums.
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