What Should I Consider Before Purchasing Health Insurance?

Health insurance is an insurance plan designed to help cover the cost of medical expenses like surgeries, examinations, prescriptions, and hospitalization. 

 Obama Care is one example of a health insurance plan. Obama Care is known as the Affordable Care Act, was enacted in2010. It intended to create cost-effective health insurance for every American citizen. In addition to this, ACA was created to shield buyers from tricks insurance companies use to increase costs and limit care. 

What should I consider before purchasing a health insurance plan?

Health insurance is very important. However, some insurance plans do not include all your health expenses. Health Insurance was made to help you with a portion of the expenses until you reach the out of pocket limit. When you surpass the limit, the insurance company will pay for all the costs associated with your medical costs.  

When looking for a health insurance plan, there a few terms you should look out for. These terms are out of pocket cost or limit, coinsurance, deductible, premium, and copayment.  

Out of pocket cost

Out of pocket cost is the greatest amount of money you would spend on included is medical-related expenses in 1 year. Monthly premiums are not a part of your out-of-pocket limit. Coinsurance, co-payments, and deductibles all add up to you out of pocket costs. 

The ACA established an out of pocket limit to safeguard individuals from dealing with extensive health care bills. Before the ACA plan was put into motion, plans did not have a lid limiting the costs individuals would have to pay for medical services. This affected people with chronic illnesses like cardiovascular disease or transplant surgery the most since the medical bills they had to pay were endless.

Coinsurance 

Coinsurance is the percentage of the price you pay for covered medical expenses after paying your deductible has been paid in full. You would have to pay If your coinsurance is 20%, then you would pay 20% of the cost of covered medical expenses until you exceed your maximum out of pocket cost. 

Deductible

A deductible is the amount of money you are required to pay before your health insurance plan is activated. Most health insurance plans require you to pay for coinsurance and copayments until you exceed the maximum personal expenses cost even though you have paid your deductible in full. 

The difference between deductibles and personal expenses is the deductible is paid before your insurance plan is initiated. The personal expenses are the cumulative amount of money you pay along with deductible. 

Premium

A premium is like your cable bill. It has to be paid every month to obtain an insurance bill. Your premium is the total amount for insurance, but it is not equal to the amount you pay for medical care. If you select a policy with a low premium you may end up having more personal expenses just to see a doctor. 

 Copayment

A copay is a predetermined cost paid for particular services like prescription medicine. Insurance companies will normally split the expenses after you have reached your deductible. 

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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