Medical Insurance Guide
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Medical insurance has always been important to people and for those who have been able to afford coverage this type of insurance provides peace of mind. Unfortunately, millions of people in this country have had to do without medical insurance. For some, the problem has been losing a job and the coverage that went with it or being employed but not having the finances to afford insurance.
Medical insurance has always been important to people and for those who have been able to afford coverage this type of insurance provides peace of mind. Unfortunately, millions of people in this country have had to do without medical insurance. For some, the problem has been losing a job and the coverage that went with it or being employed but not having the finances to afford insurance.
When President Obama signed into law a new healthcare reform bill passed by Democrats in Congress that requires all Americans to have some type of medical insurance. Obviously, people need coverage but the challenge is for those who cannot afford it, how would the policy be paid for. Understanding this complex obstacle, the government is working hard to create more jobs so people will have the healthcare needed.
To protect yourself in case of illness or injury, but also to meet the demands of the new law while not being penalized, you need to start thinking about medical insurance. You want to spend time looking at different types of policies, as well as monthly premiums. One place to start would be with local insurance companies, which is a great option but if you want to have more possible choices, you might also look online.
Today, literally hundreds and hundreds of insurance companies from all across the United States and other countries sell policies online. In fact, for medical insurance, online businesses are very competitive. For you, this is a serious advantage because you would be able to request quotes from as many of these companies you want and then take your time without feeling pressured to review the details and pricing.
You may want to choose a medical insurance policy that offers the bare necessities. In this case, the policy would provide doctor’s office care and emergency hospital care. However, for a more in-depth policy, you would need to consider services that go beyond the standard coverage. For instance, if you were concerned about being hospitalized, then you need to consider a policy that would offer coverage for an extended stay.
On the other hand, if you wanted to purchase a policy for medical insurance but you also needed coverage for both dental and vision, then it would be important to look at these policies and prices too. Many of the online insurance companies sell all types of coverage, meaning you could buy medical coverage, as well as prescription, dental, and vision coverage from the same company
The great thing about online insurance companies is that they often create special networks of doctors, dentists, optometrists, and others, meaning you would have access to a greater number of healthcare professionals. Because of this, the opportunity for finding the exact policy needed but one that would fit your current financial situation is great.
In fact, if you were provided with a quote from one company but you liked a policy a little more from another company, you might ask if they can meet the price of the first insurance provider. Often, they will do everything possible to get your business so negotiations for medical insurance are never out of the question.
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Medical Insurance Plans
Medical Insurance Plans provide cover to a person in terms of reimbursing his medical expenses which in case of serious illness or accident can soar very high. Thus medical insurance plans prevent a person from financial crisis in face of an unforeseen event . There are many different plans available in the market and there are some plans that will be better than others for a particular person.
Nowadays one faces risk while crossing a street, while traveling abroad, while using the elevator and so on. The big deal of risks and the fear emanating from these unexpected incidents makes seeking medical insurance compulsory. Medical expenses have risen manifold in the last few years and the pecuniary worry in this direction may seriously inhibit the quality of medical care one gets. Secondly the sad demise of the earning member usually suppresses the standard of living of the dependents. Grave losses can’t be reduced but medical insurance plans make an attempt to share these losses. Most medical insurance plans allow the insured to get treatment from various hospitals and doctors. Protection in terms of assured sum is also provided in case the insured passes away.
* Coverage under insurance plans is provided only for pre-specified medical expenses. Reading the plan hand book before taking cover can help a lot.
* Insurers use a term ‘managed care’ to control costs. For if one goes to the hospital without receiving approval from the insurance provider then his hospital bills may not be reimbursed.
* In most cases the insured has to pay a certain amount of money every year to the insurance company before the insurance payments begin. This is known as deductible.
* The insured may be required to share a part of the bill with the insurer. This is known as coinsurance payment.
* According to the ‘coordination of benefits’ clause limits are imposed on how much the company will pay if two members of a couple files the same claim under two different group insurance plans.
* It is always optimal to choose the insurance provider who offers maximum cover.
So medical insurance plans should not be ignored if one wants to avoid drastic changes in his wealth but service quality of the insurer should also be taken care of.
[break]Medical Cover
Medical cover is available for:
Group: These medical plans are usually available directly through an employer, company, society or union. This insurance cover is written for several people under a single master policy. In this policy, the employer may carry part of the cost or pay the whole monthly premium.
Individuals: This covers treatment costs of only an individual or a family. An individual major medical insurance scheme covers almost any medical requirement that may arise. The individual cover is usually more expensive than the group medical cover.
Here are a few reasons for which you must opt for a medical cover:
People without a medical cover need to pay medical and hospital bills from their own pocket when they or a family member contracts a disease. The medical expense is usually high and may even lead to serious financial woes. This may lead to unwanted changes in your lifestyle.
In the absence of this cover, your family will have to settle for public healthcare facilities. This may delay the cure, as the number of people trying to take advantage of such facilities is large. Moreover, you will still have to bear the cost of expensive operations, as they are not covered under public healthcare.
Many uninsured people prefer to use emergency care as their source to medical facility. As a result, they get medical treatment for injuries or illnesses only when their condition becomes critical.
Several people with no health insurance abstain from going to doctors for prescriptions. Instead, they settle for over the counter (OTC) medicines even for serious health problems, exposing themselves to greater danger.
There are various types of medical cover available:
Short-term medical insurance: It provides cover to the people who are temporarily in need of a medical insurance. People eligible for this insurance are:
o Unemployed
o College students
o Those who are dependant on their families
High-deductible medical insurance: This medical insurance covers all the medical expenses of:
o A self employed person
o Employee of a company with 50 or less workers
[break]Major Medical Insurance
Major Medical Insurance is defined as a type of coverage that provides benefits that covers most serious and extraordinary medical expenses. The maximum compensation as reimbursement ranges from $5,000,000 or unlimited. Usually the indemnification comes with a deductible or coinsurance or both.
Benefits under Major Medical Insurance:
Various benefits are available under this type of insurance such as :
Major portion of the hospitalization charges and ambulance charges are reimbursed.
Cost of various examinations and tests before getting hospitalized are also incurred by the insurer.
Costs of those medicinal drugs which are out of coverage of Social Medical System are also considered.
Types of Major Medical Insurance:
Major medical insurance is designed to mitigate the financial crisis caused due to the increased medical expenses. The different types of major medical insurance are:
Comprehensive Major Medical Insurance: This is a scheme that provides maximum protection limits including inpatient care and out patient care, has a low deductible a coinsurance feature and may boast a co payment.
Supplemental Major Medical Insurance: The supplemental major medical insurance is different from comprehensive major medical insurance in that supplemental major medical insurance policies distinguish between basic and major medical coverage and provides benefits that are left uncovered by the basic policy.
Major Medical Insurance: Points not to be overlooked
Insurance plans cover only pre-specified medical expenses. So reading the plan hand book before taking cover will help.
To maintain the coverage one has to pay a monthly fees known as premium and the premium is quite high in case of major medical insurance.
The pre-arranged portion of a covered expense that the insured must pay before the insurer pays his part of the expense is known as deductible. In case of major medical insurance, deductible is mandatory.
The percentage of covered Medicare expenditure that the insured must pay is called the coinsurance payment. This is also mandatory.
It is better from one’s part to select the insurance provider who offers maximum cover.
So a major medical insurance plan if chosen with appropriate care can prevent financial hardships and get rid of worry caused by extravagant treatment costs.
[break]Medicare Supplement Insurance
Medicare supplement insurance is sold by private US insurance companies to fill the gaps in the original Medicare coverage. These policies pay for medical expenses that are not covered under the Medicare plan, such as co-payments, deductibles and coinsurance. They can also provide extended coverage to the original Medicare plan. Medicare supplement insurance is also known as Medigap insurance.
Private insurers sell Medicare supplement insurance under strict supervision of the federal and state laws. Medigap insurance has 12 standardized versions identified by the letters A through L. Policy A contains basic healthcare benefits, such as co-payments for hospitalization expenses and purchasing blood for transfusion. Policies B through L provide extended cover in addition to the core benefits. They include services such as nursing, foreign travel emergency, preventive healthcare, specialist doctors’ fees and deductibles under Medicare.
Each Medigap policy offers common healthcare benefits as prescribed under the law, irrespective of the insurance company that sells the policy. However, the purchasing cost for Medigap insurance may differ among insurance companies.
Types of Medicare Supplement Insurance Premiums:
There are three different methods that determine the rate of growth of a premium:
Issue age: Policy premiums are based on the age of the policyholder at the time of purchase. Premiums increase with annual adjustments made by the government to meet inflation rates.
Attained Age: Premiums for such policies increase with an increase in age. This means that every year the premium increases in addition to the annual adjustment by the government. In such a plan, the premium reaches a peak when one cannot afford it, i.e. when one is in their 80s or 90s.
Community rated: People living in a community pay similar premiums irrespective of their age.
How to Buy Medicare Supplement Insurance
* Analyze yoru monthly healthcare expenses and try to estimate future medical expenses.
* Study different Medicare Supplement Insurance plans in terms of coverage.
* Search for authorized insurance companies that offer Medicare Supplement Insurance.
* Compare the cost of Medigap plans offered by different companies.
Medicare supplement insurance is associated with the original Medicare policy. It does not cover gaps in any other healthcare insurance, plan such as Medicare Advantage Plans, TRICARE, Veterans Insurance and Indian Health Service insurance.
[break]Medical Travel Insurance
Travel Medical Insurance is a perfect cover to risks associated with traveling and other unforeseen situations abroad such as illness, accidental death/dismemberment or baggage loss. Travel Medical Insurance policy holders often provide Trip Cancellation Insurance also. This provides a refund if one is unable to travel or meets an illness or accident due to which the trip gets interrupted.
Travel Medical Insurance is mandatory because
Travel Medical Insurance is in a sense inevitable whether one is an occasional traveler or a frequent one. A person finds him less accustomed to both climate and medical system abroad. This problem gets magnified if he doesn’t have proper resources to assist him in securing medical care and covering extravagant costs pertaining to diagnosis and cure.
Special Features of Travel Medical Insurance
Short to medium term plans are available by Travel Medical Insurance providers. These range from 5 days to one year and in general cover only illness, accident and emergencies. Coverage in some cases also includes evacuation, repatriation and inadvertent death. Choice of maximum benefits usually vary between $50,000 and $2,000,000. Intensive Care, Local Ambulance and Emergency Reunion are the other benefits provided.
In a world of uncertainty where life is a gamble and adventures are mandatory, it is almost impossible to ensure that your dependents will be able to maintain the same standard of living in case you meet an ill-fated accident. Also most service providers nowadays provide 24/7/365 emergency and war and terrorism related coverage. So to spend a little more now (in terms of insurance premium) to guarantee them a secured future will be a proof of one’s intellect.
For further information one may view sites like worldwidemedicalplans.com, eglobalhealth.com, travelersmed.com
