New Health Insurance Policy: Understand What You Are Paying for
A new study released by the FTC found that more than half of all consumers are confused about health insurance. What do they pay for, and what should they be looking for? This article will answer your most pressing questions.
It might not seem like a big deal - after all, you're paying a monthly fee, right? But it's important to understand health insurance before signing up - not only is it the single biggest expense you could incur on a monthly basis, but understanding your policy can make the difference between paying $10 or $500 in copays. So we've put together this article with everything you need to know about health insurance from A - Z.
What is a Health Insurance Policy, Exactly?
A health insurance policy is a legally-binding contract between you and your insurance provider. It lays out what you're allowed to use the insurance for - if you're injured in an accident, for instance, your health insurance will cover all related medical costs. It also spells out how much it will cost in premiums each month. The contract lasts as long as you pay your premiums on time and abide by the terms in the policy. You can read more about how health insurance policies work here.
What Kinds of Health Insurance Coverages are Available?
Insurance providers offer a wide variety of coverage options. They cater to a number of specific needs - you might want a family plan that covers maternity care or pre-existing conditions, for instance. You might not have any medical needs at all, in which case you would choose "preferred provider" coverage. This kind of policy only covers the cost of services provided by a doctor or hospital that is in your network - it's the same as having a high deductible health plan (HCHP). And there are also many additional options that cover procedures and supplies not covered by HCHP plans, such as Radiology, Physical Therapy and Dental Imaging .
What Do I Need To Know About What Kinds of Insurance I Can Purchase?
In some states, you can even purchase a basic policy that covers just hospitalizations , nursing home care and catastrophic injuries without any other coverage. Many of these policies (and all the plans mentioned above) must be purchased through direct "applicant-based" insurance companies - meaning your premiums will be based on your personal information, not your family's or loved ones'. This is the best way to get affordable dental coverage that is tailored to fit you. However, this is also the easiest and most affordable way to get a policy out there - which is why so many people fall victim to these applications.
How Do I Get Coverage if I Don't Have a Job?
The United States Department of Health and Human Services has an affordable program that is available to all U.S. citizens and legal permanent residents who satisfy the eligibility requirements . This means you do not have to be employed to qualify for Medicaid, which can cover treatment for many chronic health conditions and substance use disorder, as well as children with disabilities who are on the family's health insurance plan. In addition to Medicaid, there are also other affordable benefits available for low-income families through the Children's Health Insurance Program (CHIP), which is administered by the states.