The Basics of Health Insurance

Like any other forms of insurance, health insurance is also a form of collectivism and through which selected people voluntarily pool and accumulate their possible risk like having medical needs and expenses. Some health insurance are provided by the government while some are from private companies; still others are organized by non-profit companies, while others are managed by companies with the profit purpose.Health insurance may also be furnished on a group basis, like when a company provides it as a part of their benefit package, or it can also be done by individuals. In whatever case may be, premiums or taxes are collected for the protection of unexpected expenses pertaining most especially to health care.The person insured may also take several obligations in the form of the following:Premium-this is the amount that the person, who is called the policy holder, or his company, which can be referred to as the sponsor, has to pay to the plan on a monthly basis.Deductible-this is the amount that the person insured must pay out of his pocket before the insurer of health pays the share that belongs to him. For instance, a holder of policy might need to pay $400 which can be deductible each year, before the health insurer covers any of the health care provisions. It can even take several visits to the doctor or refills of prescription the policy holder or the insured person will be able to reach the deductible and then finally the insurance company will then be starting to pay for that particular care.Co-payment-this is the amount the policy holder should pay out of his pocket again before the insurer starts paying for a certain visit or any service. An illustration of this will be- the policy holder should pay $50 co-payment for a visit the doctor or in obtaining a prescription. Therefore, a co-payment must be done each particular time that a certain service will be obtained.Co-insurance-aside from paying a certain fixed amount in advance or up front, like a co-payment, the co-insurance, on the other hand, is a percentage of the certain total cost that the policy holder or the person insured should also pay. This happens when a person has to pay 30%, for instance, of the total cost of the surgery he has undergone which is over and above the certain co-payment, while on the other hand, the insurance company will be paying the remaining 70%. Depending on the actual costs of the particular service obtained, the insured person has the tendency to owe a very little, or a definitely great deal instead, if there is an upper limitation on co-insurance.Exclusions-the policy holder has to keep in mind that not all services are definitely covered by the insurance company. The person insured is definitely expected to shoulder the full cost of any non-covered services.Coverage limits -there are health insurance companies that pay only for a certain health care only to a particular dollar amount only. The policy holder can be sometimes expected to pay any excess charges that had reached the plan-s maximum payment for a particular service. Furthermore, some companies’ scheme actually has annual or even lifetime coverage maximums. So that it is expected that the plan will not pay anymore after reaching the maximum benefit; the person insured, therefore, will pay all the remaining costs.Out-of-pocket maximums-this is quite similar to coverage limits, but in this case, the policy holder’s obligation of payment ends when they reach the certain out-of-pocket maximum, and then the insurance company will pay all remaining covered costs. This can also be limited to a particular benefit category, like drug prescriptions, or it can also be applied to all coverage period for a certain benefit year.Capitation-this is an amount paid by a health insurer to a provider of health care, for which the latter agrees to treat all of the insurer’s members.Prior Authorization-this is a certification or as the term implies, authorization, that a health insurer gives prior to or before any medical service to occur. Obtaining this will mean that the insurance provider is obliged to pay for any of the services, assuming that it will match what was already authorized. Although, some routine and minor services don’t need any authorization anymore.Explanation of Benefits-this is a document that must be sent by the insurance company to a patient with the detailed explanation on what was covered in a certain medical service, and on how the company arrived at the certain payment amount and whatever the patient’s responsibility or obligation to pay.If at this point, you are on the verge of getting one, make your comparisons. Ask for different health insurance quotes before jumping on choosing one. This is one decision that will need your extra analysis power.

The Importance of Health Insurance to Business Owners

Many business owners overlook the need for health insurance. They sometimes look at the cost of health insurance premiums and decide they would rather spend that money elsewhere in the business. What these business owners don’t always consider is what would happen if they are not physically able to work and run the business. They overlook the importance of having health insurance in lieu of having cash available to spend on other projects such as marketing. Or perhaps they think they are in good health so extensive health insurance is unnecessary. Let’s consider a few reasons why health insurance is important for business owners.
 
Business Owners Are Often the Driving Force Behind a Business
 
There are few businesses that can run themselves independently of their owners. Most business owners are an integral part of the day-to-day operations of a business. Consider for a moment if you as a business owner became ill and required extensive medical care. The cost of that illness is twofold. Not only will you have high medical bills to pay for, your business will also not have your input during that time. That could seriously impact your business. Who will make decisions, see customers, or process orders in your absence? Even if you have staff that can maintain operations, will clients retain their faith in the business if you are not there to run it?
 
Having Health Insurance Shows Business Savvy
 
Having a successful business is no easy task. It requires many hours of dedicated hard work and extensive planning as well as a history of making smart business decisions. You need to have short, intermediate and long-term plans in order to grow your business into a success. Not having insurance because you want to save a few cents in the short-term does not show forward thinking or vision. On the other hand, knowing the value you bring to the business and protecting that as an asset by having health insurance shows smart business sense.
 
Health Insurance Provides Security
 
The reason people take out health insurance is to provide for unforeseen circumstances where they may require medical treatment at some point in the future. It shows that you are considering all possible risks and preparing for them. Many companies provide health insurance for their employees. This provides security not only for the employees but also for the company itself. It is a way of ensuring that the time and effort expended in training an employee will not be lost if they become ill. The insurance will help cover medical expenses so they can make a speedy recovery and return to work. In the same way insurance provides coverage for the business owner, it also provides greater security for the company. If the business owner’s health is taken care of, the business itself stands to benefit.
 
Health Insurance Can Help Ensure the Longevity of a Business
 
Some insurance plans have a component that protects your income in the event that you cannot work for a period of time. This insurance payout can be used to cover personal expenses that would normally be covered by a salary. Part of it could also be used to bring in someone else temporarily to manage the business in your absence so it can continue to function effectively.
 
What Are the Best Health Insurance Options for Business Owners?
 
Depending on what life stage you are in, your health insurance needs will vary. If you have a spouse and children, you will need an insurance plan that provides coverage for the whole family. If you are single with no dependents, your level and type of insurance cover required may not be that extensive. The most important aspect of insurance is to have adequate hospitalization coverage. The reason for this is that you need to have provision in the event that you or any member of your family requires serious medical treatment. The daily costs of staying in a hospital ward can quickly add up. Additional treatments such as x-rays, scans, physiotherapy or special medication can cost almost as much as the actual hospital bill. If you do not have health insurance, you could find yourself with a huge amount of debt that you simply can’t afford. Instead, take the time to invest in insurance and know that you and your family will be provided for in the event of a medical emergency.     

Affordable Family Health Insurance Options

Safeguarding the health of your family should be top on your agenda in life. This is because, you’re entire future and that of every member of your family depend on sound health. You can’t talk of a better future when the health of your family is in jeopardy. Oftentimes, certain unforeseen circumstances may crop up to ruin the health of your family. If your family is not adequately covered by a good family health insurance company, trouble is bound to showcase. It’s a truism that there are various family health insurance options, but, locating affordable ones is actually the point. Indeed, affordable family health insurance options are available. Let’s examine some of them that can benefit you a lot.HMO – Health Maintenance OrganizationHMO is indeed the most direct option for affordable insurance. It’s actually a health insurance plan that has a network of diverse providers which include primary care doctors, hospitals, specialists, and so on. This kind of health insurance plan requires that you and your family should trade some kind of flexibility in order to save cost and also for convenience. There are various HMO networks to choose from. Some are larger than others. It’s always advisable to choose the network where your favorite doctor belongs. He or she will be able to offer some necessary pieces of advice to you.Guaranteed Issue Family Health InsuranceThis is another unique option for affordable insurance. It’s actually meant for families that have pre-existing medical conditions. The Guaranteed Issue Family health insurance option covers your family irrespective of the health status involved. For instance, if you have family members with deadly diseases such as diabetes, cancer, high blood pressure and so on, you can always get everyone of them insured with the pre-existing condition. This allows your family to save lots of money.Life Insurance OptionThis is a cheap family insurance option that pays out a specified amount upon the death of an individual. This helps the family to continue surviving after the death of the loved one who may be the bread winner. Life insurance is of three plans namely, whole life, universal life and the variable life plans. The terms and conditions vary.Critical Issue InsuranceThis is another cheap medical insurance option that pays out a lump sum when your family member has a critical medical condition as may be covered by the policy. Included in this kind of insurance option are cases of critical diseases, injuries, surgeries, organ transplants, and blindness and so on.Accident InsuranceThis is an affordable insurance option that covers accident cases if your family is insured. The two kinds of accident insurance covered include accidental death and dismemberment (AD & D). When any of your family members gets involved in any deadly accident that leads to serious injury or death, you’re sure of adequate support from your insurance company.In all, there other options for affordable family health insurance such as the Preferred Provider Organization (PPO), and Point of Service Plans (POS) and so on. It all depends on the insurance company you’re dealing with. You can always locate most of the companies online.