Do Your Homework Before Choosing Health Insurance

If you do not have adequate health insurance, you are playing with your life, and not only your own, but that of your family. Health insurance is brutally important today and certainly makes it easy to sleep at night knowing that your family is covered in case of some type of devastating emergency. There can be no worse feeling than having a child taken to the hospital and having to say you don't have health insurance or to find out that you are not covered for some important procedure. It happens all the time. Fortunately there are plenty of health insurance options. In fact, there are so many options that they can become confusing and complicated and in times of need, it is never fun to wonder about what your health insurance will cover and what it will not cover.

Managed Care Plan Types: The two most common health insurance plan types are Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO) plans. In an HMO, you will choose a primary care provider and must see only the providers contracted with your plan. Services from a provider not in your healthcare network will not be paid by your plan. A PPO plan is similar in that you choose a primary care provider, but you have the freedom to visit other providers too, usually at a higher cost. Point of Service (POS) and Exclusive Provider Organization (EPO) are two other managed care type plans that health insurance providers can offer.

There are also many different types of coverage ranging from major medical plans to a full coverage plan that covers everything including preventive care and hospitalization. If you remain healthy and do not spend a lot of time hanging around the local hospital attached to an IV, you might want to consider major medical plan that allows you to pay a typical co-payment of around 20 percent in addition to an annual deductible that varies from plan to plan. Check on the deductible amount before deciding on a plan.

If your employer offers affordable plan options, or if you have existing medical issues, a full coverage plan may be the better choice. With a full coverage plan, you will usually pay a copay for doctor visits and a percentage of services such as X-ray, surgeries or lab work. How much you pay depends on your individual plan, with typical copays ranging from $15 to $30, and out of pocket percentages around 20-30%. Most of these plans have an annual out of pocket expense limit, meaning you will only pay so much per year, regardless of how much is billed to your insurance plan. This can provide peace of mind to know that your medical expenses will exceed your out of pocket maximum, allowing you to budget for medical expenses and not worry about unpaid medical bills.

The main point of having insurance is to make sure you and your family are safe and you don't have to go through the myriad of bills that come to the home from various hospitals and doctor's offices. They mount up and the costs can be staggering. Check out all of your options and do what is best for your family.