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Unlocking the Mystery of Health Insurance
By Sy Alter, Chartered Life Underwriter
For countless numbers of Americans, the need for quality health insurance continues to grow and often compels individuals and families to spend their own money. But time and again we are left in the dark as to which policy to choose. Confused and uncertain by the overwhelming number of choices, the majority of people seeking health insurance are left to ponder many questions and receive very few answers. Do I choose one type over the other? Which is most appropriate for my circumstances? How can I know which is most cost effective? Should I choose an HMO or a PPO? How can I decide about deductibles? Before uncovering the best choice in regard to health insurance, it’s important to understand what Health Insurance is so that whatever decision you make is based on factual information.
What is Health Insurance?
Health Insurance can be defined simply as a policy that pays specific sums of money for medical expenses, hospital or physician treatments resulting from illness or injury. In easy to understand terms, health insurance is a generic term that is applied to all types of insurance that covers and reimburses the insured for losses caused by bodily injury or sickness. Health Insurance policies offer a multitude of options and vary in their approach to coverage. Certain policies cover some or all of the expenses associated with hospitalization, surgery, physicians’ fees, drugs, medicines, lab tests, x-rays, radiation therapy, maternity and other diagnostic procedures, and some only a portion.
The Four Primary Kinds of Health Insurance!
When exploring your options, remember that there are four types of health insurance plans to consider and it’s necessary that you understand the differences to be sure you make the right decision. When choosing a plan, consider that you might have to pay a little more out-of-pocket to get the coverage you want, or to be able to choose your own doctor. On the other hand, you might be able to have a lower monthly payment or smaller co-pay if you’re willing to give up a few benefits. And while there are many options, you should familiarize yourself with the different categories of insurance before determining which best suits your needs. The basic types of health insurance include Fee for Service (FFS) also known as Traditional Indemnity, Preferred Provider Organization (PPO), Health Maintenance Organization (HMO) and Point of Service Plan (POS). (Link to different types of insurance)
Distinguish Which Type of Plan Matches Your Needs
Why settle for coverage that might not be right for you? Instead choose a plan that will cover most of your health coverage needs at the most affordable price to you. Remember, whether you currently have health insurance through your employer or are seeking to supplement your health insurance, it’s important to distinguish which matches your needs best before spending your money. To help you in making the right choice, if you are unfamiliar with the various terms pertaining to health insurance, the following Glossary of Terms will provide you with an explanation of a multitude of terms.
About the Author:
Mr. Sy Alter is a 35-year veteran of the Life and Health Insurance Industry as well as a Chartered Life Underwriter (CLU). Often retained by major insurance companies as both a consultant and a broker, Mr. Alter focuses a great deal of attention on health insurance product design. As Chairman of Spectrum Direct, he is available for consultations and speaking engagements and can be contacted by e-mail at salter@spectrumdirect.com or by phone at 949.600.7901.
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