With many major advancements in medical technology, physicians can do many wonderous things. However, when this technology is implemented, it can cost a lot of money. Having adequate health insurance for you and your children can make all the difference in your future financial health. Here are a few key health insurance tips.
Start With Understanding Premiums and Deductibles
Before you can adequately search for the right healthcare plan, you’ll need to understand some basic terms. Most healthcare plans are set up on an annual basis. You’ll have to pay a set monthly fee to be covered by your insurance company. This monthly fee is referred to as a premium.
Additionally, most healthcare plans require you to pay a certain amount before they cover healthcare costs. This amount is referred to as a deductible. Typically, plans that offer a low premium will have a very high deductible. Conversely, plans that have a high premium will typically have a low deductible. Certain procedures may also have a “co-pay” where the insurance company pays part of the bill, and you pay a portion. The co-pay goes toward satisfying your annual maximum deductible.
Get a Plan During Open Enrollment
The U.S. Government’s comprehensive healthcare website (healthcare.gov) offers a plethora of health insurance plans for you to choose from. Although this is a government program, the insurance is offered by private insurance companies. Then all or part of the premium is covered by the government depending on your individual financial situation. The catch is that you must select a plan during the open enrollment time period. This is from mid-November through mid-January. To be eligible for these insurance benefits, you need to meet the financial criteria AND not be eligible for insurance from other sources.
To obtain health insurance for your family outside of this open enrollment period, you’ll have to opt for purchasing a plan with a private insurance provider.
There are Five Main Types of Plans
As you sift through the healthcare plans available to you, you’ll notice that they’re categorized into five main categories. These include catastrophic, bronze, silver, gold, and platinum. Catastrophic coverage is intended for those under 30 years old to cover less than 60% of any medical expenses related to a major injury or illness.
Bronze plans cover about 60% of most medical expenses and come with a low premium and high deductible. Silver plans offer around 70% coverage, while gold plans offer around 80%. Both plans have average premiums and deductibles. Lastly, platinum health plans offer 90% or more coverage and have very high premiums and low deductibles.
Health insurance plans are something that everyone should be knowledgeable about. You want to select a plan that fits the average needs of your family and your budget. By utilizing the health insurance tips that we discussed above, you’ll be well on your way to choosing a great health insurance plan for your family.
Read More:
- How to Get a Good Price on Health Insurance for Your Family
- What Are Your Options for Paying Medical Bills When Your Child Has a Birth Defect?
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- Recovering from the Unexpected: 4 Tips for Financially Dealing with a Medical Condition
- 4 Ways You Can Reduce Healthcare Expenses
- The 4 Kinds of Health Insurance: Which is Best for You?
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- Reigning In Your Healthcare Expenses
