Purchasing health insurance may be one of the most important investments you can make in a lifetime specially if you want a plan that also included OEP. Hence, it is important to understand all you can about it, especially the pertinent details and components of your policy, namely, the coverage and fees, among other things. Else, you may be disappointed when it delivers less than your expectations or worse, it costs more than you expect. So, what do you need to know about health insurance? Read on to learn more.
1. Know what a health insurance policy is.
The health insurance policy is a binding contract between you and your chosen insurance provider. You are the owner of the policy and your obligation is to remit regular payments, called premiums, to the company. Under this policy, you will find your coverage and the imposed conditions by which the insurance company will take responsibility for medical costs you and/or your family will incur.
2. Clearly understand your insurance premiums.
Again, the premiums are fees you must pay to keep yourself fully covered under your insurance policy. As for the price or valuation of premiums, certain factors may increase or decrease your rate. These may be one or more of the following: gender, age, previous medical history, existing medical conditions, class or type of job or profession held, and more.
3. Be informed about deductibles.
Policyholders share in the risks and this is translated into deductibles. Deductibles are initial costs that you know and agree to pay first before your health insurance provider steps in to settle other or all remaining costs for hospitalization and, etc. Check your policy for amounts. For instance, a $500 deductible means that whatever medical need arises, you will pay up to $500 of costs before you can lodge a claim.
4. Be aware of exclusions.
Realistically, any health insurance company won’t offer total coverage. There would be a clause that lists which expenses will be non-claimable. At times, it would depend on the type of treatment, the medical condition, or the medical provider. For example, some forms of cosmetic surgery may be non-claimable. So, know what your health insurance provider won’t cover before taking out a policy.
5. Understand coverage limits.
Health insurance companies normally declare coverage limits. This means they set a maximum amount of coverage and that may be either annually or for the duration of the policy, and sometimes, both. For instance, if a health insurance provider sets an annual limit of $300,000 and a lifetime limit of $1,000,000; that means you can only claim a maximum of $300,000 per year plus a total amount of $1,000,000 for the entire lifetime coverage. Read more article 4 Insurance Benefits And Types to Protect the Future
6. Network of providers.
Often, a health insurance company will have its own list of accredited providers. If you are looking for long term medicaid services, it’s best to contact your insurance provider now. It’s beneficial to know that as you may be granted additional privileges and discounts as a policy holder. Also, direct or instant claiming is likely available, meaning, you come in and they instantly deduct any claimable amount. Thus, you are left with a net amount payable after your procedure or consultation.