It helps to have a good understanding of the basics of health insurance so you can avoid confusing (and sometimes misleading) lingo and save money while ensuring you have sufficient coverage. This guide will help you understand individual and family health insurance essentials and assist you in making important decisions so you don’t end up compromising your health and finances.
Right now, there are two categories of health insurance: individual and group coverage. Individual plans, also known as single-payer plans, are offered by an insurer directly to individuals while group plans are offered by an employer, union or government agency. In general, group plans are less expensive because the employer pays a huge portion of the premium. Since you’re reading this post, I’m going to assume that you’re interested in purchasing an individual plan so that is what this guide will focus on.
Individual plans are purchased from the open market or exchange, and they are usually more expensive than group plans, unless you qualify for a subsidy.
All kinds of health insurance have the same cost-sharing approaches. You pay a premium every month to keep your policy active and you need to consider 3 cost-sharing mechanisms:
Starting a family is an exciting phase in a person’s life. And it’s also a time to investigate your options for health coverage so that your family’s well being and health are not compromised.
When choosing health plans, you can pick from any of the following options:
When buying a family health plan, always consider what your family’s health care needs are, in addition to how much you can afford to pay each month for your insurance premiums.