Medical insurance is a form of protection against high medical costs. It typically covers some or all of the cost of treatment for illness or injury, up to an annual maximum limit. Premiums for medical insurance can be paid monthly or annually, either by the individual or by an employer, and may be tax deductible. There are many different types of medical insurance plans in the United States, and each plan has its own rules and arrangements for how care is provided. Some common arrangements include managed care (HMO, PPO, EPO, POS), preferred provider networks, and rules like prior authorization or step therapy.
There are also several different ways to obtain health insurance: directly through an individual policy, through a group plan at work or through a government-sponsored program like Medicare or Medicaid. Regardless of which type of coverage you have, there are usually some out-of-pocket responsibilities like deductibles, copays, or coinsurance. Review your insurance card or contact your provider to learn more about these costs and how they apply to you.
Why should I get medical insurance?
Everyone needs medical care at some point, and it’s expensive. Most people can’t afford to pay for the full cost of their care out of pocket, so they buy insurance to help cover some or all of the cost. Each person who has insurance contributes a small amount each month to the insurer, and this money helps pay for the cost of care for the large number of people who are sick or injured at some point in time.
Buying the right medical insurance plan is important. You want to make sure that the plan you choose will meet your specific needs and budget. Some things to consider are the length of the waiting period for pre-existing conditions, the deductible and coinsurance amounts, and any other special requirements. You should also look for a plan with a competitive premium rate for the coverage benefits you need, even if it means selecting a different insurance company.
Hospitalisation Plans, or Mediclaim policies, are the most basic type of health insurance. They provide coverage for the cost of hospitalisation, including room rent and doctor consultation fees. These policies are available for both individuals and families, and payouts are made on actual expenses incurred by submitting the original bills.
Critical Illness Plans, on the other hand, are a more specialised type of health insurance that provides cover against specified life-threatening diseases. These policies are available for individuals and families, and payouts are made in the event of a covered disease, upon submitting the proof of diagnosis.
So, even if you’re a gym-goer with an Olympic physique, and your great-grandparents lived to be 99, the odds are still pretty good that you will need some kind of medical care at some point in your life. Whether it’s a broken bone, an accident, or a chronic disease, the right medical insurance will give you peace of mind and help you manage your medical costs.