If you choose a plan, your health insurance provider will pay for your medical expenses; however, you will have to pay an annual premium, which you may also pay in monthly installments. We refer to this as the premium. Depending on the policy you choose and the provider, health insurance helps you avoid financial hardship by covering treatment costs, hospitalization fees, ambulance charges, laboratory prices, and other related expenses. Plans even cover lost income in certain situations.

Types of Health Insurance

An indemnity plan was the most popular kind of health insurance until around thirty years ago. In this case, you are in charge of paying certain medical expenses; the insurance company will take care of the rest. You get to choose the doctor you see; the insurance company has no control on the hospital or whether the visit was necessary. But the extent of this autonomy is restricted. In the event of an emergency, you still need approval from your insurance company before being admitted to the emergency room, even if you are not incapacitated. In the event that you choose the indemnity plan, you will have to pay the whole sum up front before filing a claim for reimbursement.

A health savings account is a kind of savings account that lets you contribute up to a specified amount, tax free. Unused funds are carried over year, and interest is tax-free. It is a great substitute for those who would like tax-free health plans or who cannot afford group health insurance.

Exclusive Provider Organization (EPO): Members of an EPO plan must make use of a pre-established physician network in addition to a Primary Care Physician (PCP) who will refer patients to specialists inside the network for medical attention. However, this condition is not applicable in an emergency. There will also be a little co-payment that you have to pay.

Point of Service (POS): Similar to the EPO pan, POS provides a PCP to choose from among the network providers. There are situations when your coverage will be expanded. However, your coverage can be limited and you might be required to pay a deductible (co-payment) if you choose a hospital that is not in the network. Moreover, you may have to pay in full before asking for a refund.

Add-ons to health insurance

• Top-ups: By combining a basic insurance plan with a top-up plan, you may be able to get enough coverage at affordable prices. A top-up plan is additional insurance that starts to cover medical costs above and beyond what your primary insurance plan would. Top ups only cover the cost of one hospital stay; super top up plans cover the price of a full year’s worth of medical bills for a range of ailments.
• Riders: For an additional fee, you may add a rider to your standard health insurance plan to increase coverage and tailor it to your requirements. A number of riders are available, such as those for severe illness, maternity leave, and personal accidents.
• Defined benefit plans: While standard health insurance plans usually do not cover non-hospitalization expenses like food, transportation for your caregiver, prescription drugs, and costs associated with treating conditions that did not lead to your hospitalization, among other things, defined benefit plans come to the rescue and ensure that you will always receive a pre-defined benefit, regardless of the expenses you incur.

In summary, the importance of health insurance cannot be overstated. It is imperative that you, your spouse, your children, and your parents have a solid health insurance coverage as soon as possible. You are able to get health insurance.