Types of Health Insurance
How much is the premium? Which doctors and hospitals accept this plan? Will there be high deductibles or copays prior to the plan paying anything? Will my prescriptions be covered under this? These are the kind of questions you need to find answers to when looking through different types of health insurance plans & solutions in the market.
Let’s learn about health insurance plans for individuals available in the current market, and their pros and cons.
Traditional Indemnity Plan
Advantages
- Covers most illnesses or diseases
- Freedom to choose doctors and hospitals
- No referral required for specialist visits
- Usually a PPO and part of a massively acceptednetwork such as PHCS
- Premiums maybe 50% less expensive vs major medical
- Can be used at any doctor regardless of network affiliation
- Outpatient services are accessible prior to any deductible being paid
Disadvantages
- Out-of-pocket expenses for some preventive care and diagnostics
- Capped limit on annual and lifetime claim amounts
- Pre-existing conditions may not be covered for a year (sometimes 2 years)
- Not a good choice if you are currently taking expensive medication
- Not a good fit if you are planning maternity or childbirth within the plan’s period
Short Term Plans
Advantages
- Budget-friendly
- Operates like a major medical plan
- Can cover prenatal care and childbirth after a waiting period
- No limit on maximum claim per year or per policy
Disadvantages
- Can have high deductibles, copays, and max out-of-pocket expenses
- Usually not guaranteed renewable
- Excessive claims may leave you uninsured after the renewal date
Affordable Care Act (Obamacare)
Advantages
- Great if you have significant and expensive health issues
- Covers childbirth, durable equipment and diagnostic testing
– Comprehensive prescription drug coverage - No limit on claim allowed
Disadvantages
- Sometimes includes high premiums
- Lack of flexibility in a few cases
- Premium increase is historically out of control
- Must enroll during open enrollment periods or have a qualifying event for enrollment
Healthcare Sharing Plans
Advantages
- Lower premiums vs ACA (Obamacare)
- All premiums go into a bucket. Member premiums used to pay claim
- Can cover childbirth and related expenses after waiting period
- Operates like a major medical plan
Disadvantages
- Not regulated by any government body- Network limitations can be an issue
- Potentially high copays, deductibles, and Max out of pocket expenses
Frequently Asked Questions
Health insurance and its cost differ from person to person. What’s the best rate for your friend or sibling may not be the best health insurance plan for you too because it is determined on the basis of multiple factors – scroll up to read or request a call back from one of our friendly agents.
Several private agents or websites may offer you affordable full coverage health insurance plans or cheaper ones; however, you must remember to evaluate each thoroughly to find out which best fits your requirement and budget. Look for the hidden clauses and conditions.
Healthcare and insurance may often be used interchangeably but they are two different terms under the umbrella of health. While health insurance provides cover for medical services, healthcare includes diagnosis, treatment, and prevention of disease by licensed and trained professionals. A person seeking healthcare may not necessarily seek or have health insurance.
Individuals and families can pay the premium automatically through a bank draft. Meanwhile, owners of small businesses or people employed in such establishments can opt for group billing for individual plans. Small businesses can also pay via monthly invoices.