WHICH HEALTH INSURANCE PLAN IS BEST FOR YOU?
Obtaining and maintaining health insurance is one of the most important decisions an individual or family can make. There are many benefits to obtaining health care as a California resident. For example, because the state of California regulates the insurance industry, the same plan purchased from different companies will have the same monthly premium. One of the reasons to choose your insurance agency carefully is to ensure that they are giving you good advice and helping you choose the right plan for your, and your family’s, needs.
Health insurance has many aspects with which you will want to be familiar. The primary benefit of having health insurance is that your insurance will, depending on the coverage, cover part or all of your healthcare costs. Those looking into health insurance plans should be familiar with the following terms:
Health Insurance 101
Premium refers to the amount of the monthly payment you pay for your health insurance.
The deductible is the amount you must pay out-of-pocket, after which the insurance will pick up and pay the rest. For example, if your deductible is $500, and you need a procedure which costs $10,000, you will pay the first $500 and the insurance company will pay the other $9,500. For any procedure or service which costs $500 or less, you would be responsible as this would fall within the $500 deductible. In this way the health insurance deductible works very similarly to a car insurance deductible.
Some healthcare plans have services and medications which qualify as “deductible waived”. In this case the deductible would be reduced or waived altogether. The deductible information of a healthcare plan should be studied and well understood when deciding which plan is best for you.
Coinsurance is similar to a deductible, but it is based on a percentage instead of a fixed preset amount. For example, if your coinsurance is 25%, you would pay 25% for a given service or procedure, and the insurance company would pay the other 75%. Like the deductible, the coinsurance specifications of a given plan should be well reviewed and understood before a decision is made.
The Maximum Out of Pocket (MOOP) refers to the maximum you would be required to pay for covered medical services. This may refer to the maximum amount in a given year, or in another time frame such as your lifetime. This amount would be satisfied by monies paid toward thecoinsurance payments and the deductible payments. Co-payments are usually excluded from MOOP, and will continue despite the MOOP having been reached.
Co-payment refers to a set amount you would be required to pay for certain services, such as a normal doctor’s visit, and prescription drugs.
How much Insurance Do You Need?
Determining what level of insurance coverage you require can be a daunting task and is dependent upon a number of factors. The frequency of doctor visits and the existence of medical conditions that require regular treatment or prescription drugs can determine what level of coverage is right for you and your family. If you are an individual who is in relatively good health and only visit the doctor for checkups, routine physicals, or medical emergencies, a Major Medical plan is likely the best choice for you. These plans typically have lower monthly premiums but higher out of pocket costs when you visit the doctor.
DENTAL & VISION INSURANCE
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All Types Insurance
805 Twelve Bridges Dr #15,
Lincoln, CA 95648
We are an Insurance agency specializing in Health insurance, including Medicare related products.
With 16 years of experience we will strive to help you choose the right insurance policy.
© 2017 All Types Ins.