Economy Medical Insurance

By: EconomyWatch   Date: 10 September 2009

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Medical insurance plans provide cover to policyholders in terms of reimbursing their medical expenses if they fall seriously ill or meet with an accident. While there are several plans available in the market to cater to the varied needs of consumers, economy medical insurance is the most sought after.

Economy Medical Insurance: Basic Information

While buying economy medical insurance, consider the following:

  • Coverage under insurance plans is provided only for pre-specified medical expenses. Read the plan handbook to ascertain which medical treatments are covered before buying a policy.

  • The term 'managed care' is used by insurers to control costs. If your insurance policy falls under “managed care,” always seek approval from the insurance provider before going to a hospital to ensure that your hospital bills are reimbursed.

  • The insured has to typically pay a specific sum (known as deductible) on an annual basis to the insurance company before it starts paying.

  • The insured may need to share a part of the medical bill with the insurer. This is known as coinsurance payment.

  • According to the 'coordination of benefits' clause, there is a limit to the amount paid by an insurance company if a couple files for a claim for the same medical expense under two different group insurance plans.

  • Choose the insurer who offers the maximum cover for the same price.  

Things to Consider When Buying Economy Medical Insurance

The first step towards buying an economy medical insurance is the identification of personal insurance needs.

  • While seeking cheap medical insurance, prioritize the risks faced by you.

  • A low-cost medical insurer may not provide cover for very high risks and might deny claims submitted for expensive medical treatments. Therefore, a potential insurance buyer must read the policy disclosure agreement carefully.

  • Always ask the insurer or agent to explain the points in detail whenever you are in doubt.

  • Research the track record of an insurance company to gauge its credibility and financial soundness.

  • Look for group insurance and insurance provided by employers to lower your medical premium. Group insurance policies are cheap and offer greater coverage. Moreover, you may not be required to undergo medical screening to qualify for the policy.


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