Health Insurance Coverage - What Does it Cover?
Health Insurance, otherwise known as health cover, is an insurance that covers either the full or a portion of an individual's risk involved in paying medical costs incurred by him/her. Health insurance will take care of all the expenses incurred by the insured while he/she is receiving treatment for any illness or injury. Health Insurance policies are mainly of three types Indemnity Plans, Managed Care Plans and Commercial Insurance plans. There are also Private Health Insurance plans. The basic difference among the three types of health insurance lies on the manner in which the insured individual carries the risk.
In indemnity insurance plans, the insured individual pays a fixed premium every month to the insurance company, which in turn takes care of his/her out-of-pocket expenses. The premium amount is based on your current health condition and previous illness records. If you have been previously sick and have not been able to pay the premiums in time, then you will be charged higher premium amounts by health insurance companies. If you pay the premiums regularly and stay fit, you can rest assured that your illness will be fully taken care of in time and your out-of-pocket expenses will not be felt. To get detailed information, visit us at https://detoxtorehab.com/insurance/blue-cross-blue-shield-health-insurance
Managed care plans are very similar to Indemnity Health Insurance. The only difference is that the insured is given choices regarding the expenses incurred. A normal Indemnity plan covers the entire cost of hospitalization, medication, surgical and doctor's fees, provided you have insured yourself against any such expenses. With managed care plans, you pay only for those expenses incurred that have been agreed upon by your doctor and the insurance company. The insured can decide which physician to see for your treatment, how much to spend on medications and other matters pertaining to health insurance coverage.
Commercial insurance plans come under the category of managed care health insurance plans. The insured must pay a portion of the costs incurred in case he becomes sick, even if it is just part of his regular expenses. However, the difference between what you would have to pay and what the company would have to pay is generally quite a large amount. This amount is known as the deductible amount and you must pay this every time you become ill. Otherwise, if you do not pay anything when you become ill, then you will be charged additional fees for your healthcare.
Private health insurance covers medical care that is not covered by any other health insurance plans. It is also known as catastrophic health insurance. This type of insurance covers the medical costs of major illnesses only. It usually does not cover any minor illnesses or injuries.
Health insurance coverage depends upon the kind of insurance coverage you opt for. As per health insurance coverage calculator, the annual expenses incurred by an individual in a single year is about $2500. In contrast, an insured can afford to pay thousands of dollars every year towards his premiums. Some individuals consider it unnecessary to pay such high amounts towards premiums every year. They may not be right.
For additional info click here -https://en.wikipedia.org/wiki/Medicare
