Posted by Mary K. on Tue, Nov 03, 2009 @ 12:50 PM
My last post went over some basic information about individual health insurance. This time I'd like to dig deeper into how plans are priced.
How much does an individual health insurance plan cost?
Cost is an important consideration when buying health insurance. Running quotes is the fastest way to find out what a policy might cost you. Generally speaking, a plan with more coverage will cost more than a plan with less coverage. You may find the benefits in an individual policy are simpler than in a group plan. And, there is usually a greater cost-sharing element. For example, you might have to pay co-payments, deductibles and coinsurance before the insurance plan pays any claims. But the more cost-sharing you are willing to take on, the less you pay for the insurance premiums.
Most people just want the peace of mind that they have coverage should they be diagnosed with a serious illness or have a bad accident. Many do not want or need an all-inclusive or very comprehensive plan because these tend to be more expensive. That's why a basic benefit plan works for many people.
Here are a few insurance definitions you might find useful:
Annual Plan Deductible: The dollar amount that the insured must pay out-of-pocket each year before the insurance company will make any benefit payments for claims.
Coinsurance: The percentage an insured is required to pay for a medical claim, after the co-payment or deductible. For example, if you choose an 80/20 plan, you pay 20% of the eligible covered amount and the insurance company pays the other 80%.
Copayment: The amount specified in your plan that an insured person pays to a provider for a specific health care service at the time it is received. For example, an insured may pay a "$35 office visit copay".
Out-of-pocket maximum: The maximum amount that an insured is required to pay under an insurance policy per year.
Visit Celtic's Individual Health Insurance Learning Resources page to learn more.
Posted by Mary K. on Mon, Sep 14, 2009 @ 09:52 AM
Understanding any kind of insurance can be confusing. Understanding your car and homeowners insurance is very important - understanding your health insurance is critical. I would like to share some basic information that may help.
What is individual health insurance?
It's coverage that you buy for yourself and your family. It can cover one person, a couple, or a family. Most people get health coverage through work, an association they belong to, or the government. If you do not have health insurance through any of these options, you need to buy private health insurance.
Do I need health insurance?
Not having insurance is worse than paying premiums. You might be able to pay for a doctor visit, prescription or other smaller medical costs on your own. However, you probably could not afford the high medical bills following a bad accident or severe illness. If you don't have insurance to protect you, you are responsible for paying all of these bills yourself. People without insurance may face a serious threat to their health by waiting to go to the doctor. There will be higher costs if your condition gets worse.
Where can I buy individual health insurance coverage?
Individual health insurance can be purchased through independent health insurance agents. Agents represent many companies that have a variety of plans. You can also buy health insurance on the Internet or directly from an insurance company.
Visit Celtic's Individual Health Insurance Learning Resources page to learn more - and stay tuned to this blog for additional information to help you understand individual health insurance!