Buying Health Insurance

By: EconomyWatch Content   Date: 2 February 2010

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A medical emergency comes unannounced. This can cause you physical as well as mental agony. The cost of medical assistance can even dissuade you from persisting with a quality medical checkup. Therefore, buying health insurance is critical and can save you from a lot of financial stress that a medical emergency usually accompanies. 

Ask Yourself Before Buying Health Insurance

Since health insurance has tax benefits and comes at a premium, it is worth studying its various elements before taking the call. Ask yourself:

 

  • What is the monthly premium?

  • How much will you have to pay for medical check ups before the insurance covers you?

  • How much needs to be paid for doctor’s visit and prescriptions as co-payments?

  • What is the limit of the health insurance and would you be covered for bigger expenses?

  • How much would the payments be if you choose a PPO and visit doctors/hospitals outside the network?

 

Other factors to be considered at the time of buying health insurance are the extent of coverage and the promptness of the insurance plan. There are times, such as in the case of diabetes, when consumers have to wait for around six months to get the assistance. Also, while visiting a doctor, enquire whether he is included in the network. 

PPO or HMO: Buying Health Insurance

This is an area of much debate. A PPO (Preferred Provider Organization) plan works through a syndicate of preferred doctors that the consumers can refer to. However, in case they visit a doctor out of the network, they have to make higher payments, as the PPO reimburses only a small portion of the total cost.

 

An HMO (Health Maintenance Organization) restricts consumers from visiting doctors outside the network. Out-of-the-network visits are not reimbursed and the total cost remains the consumer’s sole responsibility.

 

PPO therefore seems a better choice for consumers who travel a lot. It also features a no-referral style of operation. Therefore, in case of emergencies, one can approach a specialist without requiring to run behind network doctors to get referrals.

 

Therefore, while buying health insurance, consider your frequency of traveling and also the amount that you are willing to pay.

 


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