Why health insurance? It is true that we live in a world where there is a continuous increase in the need for medical attention. Most often, there are many types of infections and diseases that place the human health at risk. Also, the possibility of getting involved in an accident is high making health insurance an inevitable solution. As humans, we need to be assured that our future is secure and that when we finally grow sick and incur medical bills, there will be a way out to settle our medical expenses. For this reason, health insurance can be defined as an insurance policy taken to cover for any medical expenses incurred by individuals.
Types of Health Insurance
When making the decision on choosing a health insurance plan, you need to consider many factors such as your financial strength. You also need to know the many types of health insurance plans that are available. There are many types of health insurance plans, however, some of the most common types of health insurance plans are:
1. Health Maintenance Organization Health Insurance
Also known as HMO, this type of health insurance plan ensures that you are able to access certain hospitals and doctors. This is because it is based on a network of contracting doctors and hospitals known as providers. Here are some features of the health maintenance insurance plan:
– You are allowed to choose your primary care physician upon signing up. This physician chosen from a network of doctors will act as your first contact incase of any health needs. Also, it is this physician that will give you referrals should you need specialized treatments or tests.
– A major benefit of health maintenance insurance plan is that it has lower premiums than that fronted by other health insurance plans.
– They often come with copayments which refer to an amount of money paid when you seek medical care. Copayment can be a given percentage and can be paid for each visit made to the hospital or doctor.
2. Participating Provider Options Health Insurance
Also known as PPOs, the participating provider options health insurance plans also makes use of a network of hospitals, doctors or specialists. However, unlike the HMO, the PPO does not give an individual an option of choosing your preferred primary care physician. You will also have the option of receiving care from doctors and hospitals either within or outside the network and will not necessary need a referral from your physician for you to see another doctor or to visit another hospital. Here are some features of the PPO insurance plan:
– It has higher premiums than those of the HMO and this translates to higher upfront payments.
– It has higher costs because you are allowed to receive care from doctors and hospitals outside its network of physicians.
– The participating provider options health insurance has deductibles which have to be paid out of the pocket before the insurance coverage can commence. The deductibles can be any amount depending on the company offering the health insurance plan.
3. Consumer Directed Health Insurance Plan
This insurance plan is also called the CDHP and is known as the insurance plan which joins the PPO insurance plan with the health savings account insurance plan. Here are some of the main features of the CDHP insurance plans:
– You are given the choice to choose whether you want to receive health care from within the network of hospitals and doctors or if you want to receive health services from doctors and hospitals outside the network.
– With the CDHP, it is not necessary that you have to be referred for you to see a specialist or a doctor.
– Should there be a high deductible health plan included in the CDHP, then, the lowest premiums will be offered since as an individual, you will be responsible for the larger percentage of meeting your health expenses.
– If you choose the HSA option, you will have a special tax advantage.
Why Do You Need Health Insurance?
Why exactly do you need to have a health insurance policy? It is no doubt that paying premium for a health insurance policy often seems expensive and undesirable. However, the risks of remaining uninsured are worse than getting an insurance plan. Here are some reasons why you need a health insurance plan:
– Think About Your Future:
You never know your future health. The future is as dark and uncertain as you can imagine. You will never know the type of medical care you will need. Worse still, illness rarely sends warning letters to inform you of their coming and most often, they may come when you are in your lowest financial ends. For this reason, the health insurance ensures that you are always prepared for any unforeseen medical circumstances.
– Think About Your Financial Security:
As much as you may think that paying premiums is hectic, having a health insurance plan provides a sense of financial security. Without health insurance, paying medical bills may lead an individual into deep financial debts and eventually, an individual may be defeated to pay his bills.
Life is full of surprises and a medical emergency may radically change the direction of your life if you are not financially prepared. Medical coverage varies and may lead to follow up visits to the doctor which in the essence will need more financial coverage.
It is for this reason that as a company, we offer Philadelphia health insurance services and advice. If you desire to get the best health insurance plan in Philadelphia, then, it will be advisable to contact professionals. We offer you with the best life insurance solutions and it is for this reason that many residents of Philadelphia have laid their complete trust in our services. For now, you may think it is expensive to get health insurance plan but in the long run, when you save money on medical bills, you will appreciate your health insurance plan and become grateful that you went all the way to enroll in a health insurance plan.