Tag Archives: Health
Health Insurance Companies Still Operate The Old-fashioned Way
Health Insurance Companies Still Operate The Old-fashioned Way
Health insurance is at the center of one of the most enduring and prominent social controversies in recent history. With costs rising year after year at an unprecedented rate, and the roster of uninsured continuing to grow as well, the health insurance quandary is at the forefront of the social and political dialog.
For those who are attempting to understand the nature of this controversy it is hard to know where to even begin to look. The health insurance debate spans so many aspects of society; from providers to customers, from hospitals to malpractice attorneys, and from the function of private markets to the role of government in healthcare. However, if one seeks to educate themselves on the many facets of the issue, then understanding health insurance companies is a logical starting point.
It has been over three-hundred years since the concept of health insurance had its genesis. The original health insurance business model was one where the focus was solely on disability. Only injuries that could leave the patient disabled were covered; everything else was paid for by the patient. Amazingly that basic arrangement remained in effect for the next two-hundred years. It wasn’t until the 20th century that the disability model of insurance was replaced with the more familiar, contemporary health insurance; hence, the modern health insurance companies were born.
The essential philosophy on which health insurance companies operate is that they enter into a contractual relationship with their customers. The customers pay insurance premiums, and in return the health insurance companies cover the costs of predetermined medical conditions such as most routine, preventive, and emergency medical conditions. In many cases some or all of the cost of prescription drugs is covered as well.
The obvious reason for people to purchase insurance is that despite the high costs of insurance, the high cost of medical care can be much greater if they are unfortunate enough to become sick or injured. And that scenario does hold true in reality, and health insurance companies frequently pay more in coverage than they collect in premiums for some individuals. To understand how they can do that and still remain profitable then you must understand the basic assumptions under which health insurance companies operate.
The first thing health insurance companies do when reviewing an application for coverage is review the individual’s medical history. The company knows that high risk individuals are likely to incur large medical expenses, and those individuals are generally rejected or offered coverage at an increased premium rate.
Of those who have medical histories that fall within normal parameters, they are offered coverage and become customers. The health insurance companies know that, with the help of some statistical calculation, they can determine the percentage of their insured clients who will become ill during the year, and they charge a sufficient premium that will not only cover those costs but allow for profitable operations as well.
Another way that health insurance companies control expenses and maintain profits is to make the customers pay for a portion of their service at the time it is rendered. That payment is in the form of a co–payment, which is the out-of-pocket expense for which the customer is responsible.
The purpose of the co-payment is multifunctional. Not only does it directly offset some of the expenses, it prevents people from abusing their coverage by seeking unnecessary treatment. If out-of-pocket expenses were very low, or non existent, people would be likely to go to the doctor or pharmacy for the slightest issue or problem; issues that in many cases do not require medical attention.
At the same time, health insurance companies know that if co-payment expenses are too high, people will put off seeking attention, and that could ultimately lead to even more serious problems for the customer and more expenses for the health insurance companies.
Ultimately, health insurance companies seek a balance in all things they do. They seek to find the right balance of price in co-payments and premiums, and they seek the ideal balance of patients who will require predictable needs and consistent premium payments.
They use enticements like exercise or smoking cessation incentives that may cost them a little now, but could save them much in the long run. It is a business model that has evolved over the centuries and continues to evolve to this day, but the basic principles on which health insurance companies operate remain relatively constant.
Health Savings Account Medical Insurance
Health Savings Account Medical Insurance
Health savings accounts (HSA) are tax-sheltered savings account much like an IRA. The main difference is that funds in a health savings account are used for medical expenses.
In order to qualify for a health savings account, the law imposes certain eligibility requirements that must be complied with. One of these requirements is that you should be enrolled for coverage under a health savings account medical insurance plan.
Health savings account medical insurance plans are called HSA-qualified medical insurance because they meet the terms and conditions set in the law. Under the Medical Bill, which became a law in December of 2003, there are certain insurance policies that would disqualify you from opening a health savings account if you are covered under such policy. However, there are also medical insurance plans that conform perfectly well with the limitations set. This is where health savings account medical insurance plans come in.
How to Choose a Health Savings Account Medical Insurance Plan
When you apply for an HSA, the first step is to choose an HSA-qualified medical insurance plan. This is because the law requires that you must be enrolled under such plan before you can become eligible for an HSA.
But how do you choose a health savings account medical insurance plan?
Well, first and foremost, you need to get an instant quote. You want to know what the available plans in your area are as well as be able to compare the price of the premiums and coverage.
A note about comparing premiums: it is recommended that you do this on just the 100% health savings account medical insurance plans. This is because contributions you make to your HSA are limited and such limitations are tied to the amount of your health savings account medical insurance plan deductible. If you enroll under a 100% plan, you can still get coverage for 100% of your expenses even after your deductible. Thus, you can make the maximum HSA contribution and yet only a minimum out-of-pocket exposure is reflected.
Next, decide if you want a health savings account medical insurance plan that would cover only outpatient charges, or one that would cover only charges for hospitalization. Of course, premiums for this kind of plan will be high, compared to plans that cover only inpatient doctor’s visits and over-the-counter drugs.
In addition to your health savings account medical insurance plan, consider adding a supplemental accident plan. There is little in the way of costs since accident plans are very inexpensive. Now, you can lower your premiums even more but at the same time limit your exposure for the type of claims that you will mostly likely need medical insurance for.
Lastly, do a final review of your health savings account medical insurance plans and then choose one that suits your needs.
Affordable Student Health Insurance – How To Get Student Health Insurance Cheap
Affordable Student Health Insurance – How To Get Student Health Insurance Cheap
Are you one of the many college or university students who plan to travel and study abroad during an upcoming semester? If so, you need to consider purchasing overseas student health insurance. Overseas student health insurance can be affordable and cheap, especially when compared to medical costs you would have to pay out of your own pocket if you were to get sick or injured while studying in another country.
Students who plan to study abroad can usually purchase travel insurance from an insurance company that specializes in travel insurance. Overseas student health insurance can be purchased to last anywhere from one week to one year, depending on the insurance company from which it is purchased. You can also purchase long-term overseas student health insurance if you plan to study in another country for more than one year.
When you are looking for affordable overseas student health insurance, be prepared to provide specific information about the trip, yourself, and anyone else to be insured. Questions will vary among the different insurance companies, but all of the insurance companies will way to know:
• The country, or countries, in which you plan to study.
• The date you plan to depart and the date you plan to return.
• Your age, and the age of any other family member to be covered, such as the age of your spouse and the age(s) of your child(ren).
Just as when you purchase any other insurance policy, you need to take certain steps when shopping for an overseas student health insurance policy. Always check the ratings of the insurance companies you are considering. Try to get ratings for both the financial security of the insurance company, as well as the operating stability. You can find this information from your state’s department of insurance, or from independent research companies. Ask your state’s department of insurance about any other information they can provide about the company.
Health Insurance: Just The Basics, Just The Facts (2)
Health Insurance: Just The Basics, Just The Facts
If you are without health insurance and not sure what options are best for you in the market, there are definitely some things that you want to go over before you get started shopping the market. With these tips, you can find out what health insurance options are best and the best method of pursuing your policy.
If your health is not very good or if you have young children, you should definitely subscribe to a health insurance. Many people do not have a health insurance or are not satisfied with the coverage that comes as a benefit of their job. You could save a lot of money on hospital bills and avoid stress in case of illness with a health insurance.
When your child goes off to college you’ll need to consider their health insurance coverage. Contact your insurance company to see at what age you need to remove them from your insurance policy and get them their own personal coverage. It can range from 19 to 31 years old, depending on which state you live in.
If you like your current doctor and you do not want to change providers then you need to make sure that you find out whether he or she is one of the network providers before signing up with any company. Many health insurance companies will not cover you if you see a doctor that is out of the network.
If you want to keep seeing your favorite doctors, make sure they are included in an insurance company’s provider network before you sign up. If not, you may have to pay extra to see them, if you even can. Don’t switch plans unless you are comfortable with the new plan’s physicians.
A great health insurance tip is to make sure the physician you want to see is part of your health plan. This makes things much easier because you won’t have to go through the huge hassle of having to get a referral. You have to get a referral to see anyone that’s not in your health plan.
You don’t have to get the best type of health insurance right away, just make sure you’re insured above all else. If you have to settle for lower coverage than what you want, that’s fine. Just make sure you start saving so you can get the type of coverage you want later on, since you can always upgrade.
Check your health insurance policy to make sure your spouse gets the same coverage you do. Some insurance companies will only provide the same coverage for your spouse if you pay a much higher premium. Search for a policy that offers you both the same benefits, for a price that you can afford.
Before you start your shopping for health insurance, you want to make sure that you know the key strategy to getting the best policy for you and your budget as well. Take the right steps with the right tips, with these health insurance tips offering the right start.
Don’t Leave Your Family In The Dark, Find Out About Health Insurance!
Don’t Leave Your Family In The Dark, Find Out About Health Insurance!
Knowing what your options are and what to look for in your health insurance plans is vital for getting the best deal. There are many different ways to go about purchasing health care, whether through a group or individual plan, an HMO or a PPO. The options are endless. In this article, we can help you understand some of the tricks to getting the right coverage for you.
When applying for health insurance, it is very important that you are honest about your medical history on all of the questionnaires and paperwork. Double check your answers to make sure that everything is correct. One dishonest statement or accidental error can lead to a denial of your coverage or higher rates.
When purchasing a health insurance policy, you may want to consider using an insurance broker. An insurance broker will do all of the leg work for you and ensure that you get the best possible health insurance. A reputable insurance broker will also shop around for you and find the best priced health insurance that suits your needs.
To protect yourself from being denied coverage, take extra care when filling out your insurance application. A simple mistake could be enough to have your entire policy rendered void. Fill out the policy slowly and carefully, and triple check it to make sure there are no mistakes. It’s crucial that every step of your application is accurate.
Make sure you understand what key words in your health insurance policy mean – do you know the difference between your deductible and your out of pocket amount? If not, find out! Do you know which medical services are covered and which are not? If not, find out! You owe it to yourself, and to your wallet!
Do not lie about anything when taking out a health insurance policy. It might be tempting to omit certain details. Resist the urge and be completely honest. A little white lie can make your entire policy useless. You do not want to find yourself stuck with the bill if you happen to get hospitalized and caught in a lie.
Consider your current, as well as, your future needs when you are shopping for health insurance. You may find that you will need maternity care or insurance for children down the road. If you can find a policy with a good health insurance coverage when you are starting out, it will be much easier in the future for you.
Regarding your current plan or a plan that you are considering for health insurance, check for grandfathered exemptions. Health reform is going to be bringing changes to much of the health insurance landscape, and it is best to know what provisions in your plan will remain intact should laws go into effect that change or revise those areas.
Choosing a health care plan can be overwhelming. Deductibles, co-pays, premiums, in-network or out-of-network, the different options are limitless. Health insurance is complicated, but it is possible to get the best plan for your needs, by understanding how the process works. Use the tools you’ve learned in this article to figure out what works best for your needs.