Types of Health Insurance

There are many different types of health insurance programs, but they can be divided into basically three types of medical expense protection. The first type of protection is called conventional health insurance and generally provides for hospital, surgical, medical, major medical, comprehensive, catastrophic and dental plans. This insurance is provided by commercial insurance companies, independent organizations, Blue Cross and Blue Shield. Rates depend on which plan you buy into, the level of coverage you and your employer chooses, and whether you purchase individual or family protection. The second basic type of health protection is the prepaid health care plans. The major providers consist of HMOs or Health Maintenance Organizations, and PPOs or Preferred Provider Organizations. These are groups of doctors, hospitals and other health care professionals who have joined together to provide members with prepaid medical care. Instead of paying a premium, each member pays a flat monthly or quarterly fee. The last type of health insurance available is government health plans. These include Medicare and Medicaid. They are both federally funded, while the latter is administered by the state. Check with your local offices to see if you qualify. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not a substitute for the advice of an insurance professional.

Employer Requirements

Most families don't have much choice in the medical plan they purchase. Many subscribe to whatever plan is offered by the wage earner's company. This is usually the easiest and least expensive form of protection. Where both spouses work, it's to your benefit to examine both plans before making a decision. Your employer, however, may choose the level of coverage you may receive. Several advantages to this type of coverage are that the premiums are often deducted directly from your paycheck, and your coverage can not be terminated regardless of the number of claims you file. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not a substitute for the advice of an insurance professional.

How to Check Your Coverage

There are several questions which you must answer when checking your health insurance coverage: Does your insurance provide coverage for only a specified amount per day, or does it cover usual customary costs? Does the plan cover pregnancy? For the unmarried, or only insured and/or spouse? Does it cover newborns from birth? Does it cover hospital costs for as long as the injured needs treatment? Does it exclude coverage for specified illness or accidents? How long does it cover the insured's children? Does it pay for outpatient treatment and/or emergency treatment? Is there a time limit on submitting claims? There are many other questions in addition to these basic ones that you should check into when evaluating your insurance coverage. Check with your insurance agent or company office if you need any of these or other questions answered. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not a substitute for the advice of an insurance professional.

Social Security and Disability

Social Security Health coverage consists of several parts of the Medicare Health Insurance program. Part A is for the hospital insurance and is financed through social security taxes. It's available at no cost to those eligible for social security. Part B is voluntary supplemental medical insurance. It is deducted in monthly premiums from your social security check, and all social security recipients are automatically enrolled until such time as they officially withdraw from the program. For additional information on Medicare coverage, contact your local social security office. A good rule is to contact your local office at least two or three months before you turn age 65 to apply for Part A. For most individuals, the loss of a paycheck either permanently, or for an extended period of time, would be financially devastating. In addition to this, when you become unable to work because of an injury or illness, very often you will require expensive medical care. It becomes very important that you have disability income insurance. There are several things to look for in a good disability insurance policy. The monthly benefit should equal approximately 60 to 70 percent of your gross pay. Choose a waiting period as long as you can afford to wait for the benefits to begin. This will substantially cut your premiums, and a good plan will pay when you are unable to work at your regular occupation, as opposed to any occupation. Make sure that you are covered for both accident and sickness. Choose non-cancelable renewal. There are other questions on types of disability insurance that you will find helpful to discuss with your insurance agent. Remember, this information is not a substitute for the advice of an insurance professional.

Supplemental Insurance

Part B of Medicare provides for supplemental medical insurance. It provides for doctor services, inpatient and outpatient services and supplies, home health care, physical and speech therapy, ambulance services, and unlimited home visits by skills nurses. You are automatically enrolled in the program unless you officially withdraw and the monthly premiums are deducted from your social security check. Although you must pay the difference between the 80 percent of Medicare Supplemental Insurance coverage and what you are charged, many doctors agree to accept the amount approved as paid in full. You may also be able to purchase supplemental insurance from your own insurance company depending on your age and physical health. For details, check with your insurance agent about your company and what it has to offer. Accordingly, this information is not a substitute for the advice of an insurance professional.

Do You Need Long-Term Health Insurance?

Long-term health insurance provides coverage for nursing home care and in-home care. There are currently around 100 companies nationally that offer this type of insurance. Premiums and benefits vary widely. Some policies only pay for care that is medically necessary. A good policy will not only cover nursing home care, but also home care and community services. Some policies will only pay if the patient comes directly out of the hospital to the nursing home or home care. In this case, Alzheimer's and dementia persons might not be covered. Since these disabilities also leave people unable to care for themselves, it's important that the policy cover their needs without an immediately preceding hospital stay. The policy should also provide for inflation protection. These policies are not inexpensive, however, the earlier you start, the lower your rate will be. According to the Health Insurance Association of America, the average age that the most people buy long-term insurance is 69. The average annual premium for a policy is $1,500. Before your purchase a policy, check with your attorney or financial advisor. You might also check with AARP to see what they offer. And, you can also consult the United Seniors Health Cooperative, 1311 "H" Street NW, Washington, D.C. 20005-4706.