Your Health Insurance

Never underestimate the importance of your health as it is one of your most important assets. As a consequence, when considering your health cover, ensure you take your time deciding on the best type for you and your family.

Health insurance is defined as a policy that will pay a fixed amount of money for medical expenses and treatments and is basically a way to ensure protection against any sickness or injury. There are a number of sub categories which have become specialist insurance areas of their own including accident insurance, disability income insurance and accidental death insurance which are only a few of the types available. Based on the needs and requirements of people there are now many different kinds of health policies that can be arranged.

The most basic of health insurance is known as a Fee-for-Service Plan where an insurance company pays a set amount or a percentage for the services offered to the insured person, which is agreed at the outset. One drawback to this type of plan is the insured must pay a deductible fee in advance in addition to the monthly premium but most insurance companies are gradually phasing this type of plan out.

Another type of plan is that run by health maintenance organizations where the insured chooses a doctor but must use that doctor each time he has a health problem before he can be referred elsewhere; often know as gatekeepers. The reasoning behind an HMO is that this one doctor will get to know you and this person will see you for everything and can stress preventative care a preference to care after the fact.

By combining a health maintenance organization plan with a fee-for-service plan or Preferred provider Organization or PPO, the insured gets to choose a doctor and hospital network they can use but any medical attention must be provided to hospitals and doctors within this network. Medical expenses are covered by the Preferred Provider Organization only when the insured person resorts to the preferred or network providers; however, if you visit a hospital or doctor outside your network, you will often pay an increased amount.

Becoming more commonplace is the Exclusive Provider Organization where health care providers both individual and groups enter into an agreement with the health insurance providers. EPOs will meet your expenditure only if the physician you opt for is within EPO's network, although serious situations can be considered as exceptions.

Because there are so many types of plan and health insurance available it is worthwhile consulting with you workplace medical benefits manager to make sure you take out the correct one for your circumstances. You can also seek advice from your physician who is already familiar with all health plans and of course your medical history.