According to recent studies, many Americans don’t know key information about health insurance and don’t understand the basics facts of it. Having that knowledge I very important because it will help you choose the policy that is right for you and your family. Health insurance is also oftentimes a big expense, so it is crucial to make the best decision. Some Americans still choose to go without having a health insurance policy, and it is a huge mistake from many aspects, but first and foremost, it puts you and your loved ones in a great financial risk. If something unexpected happens and you will need medical care, the cost of just one ER visit can be thousands of dollars. Just because you didn’t have health insurance you can be responsible for bills for the rest of your life. That added expense would affect other expenses you already have and can stop you from reaching your goals and dreams, such as buying a car, going on vacations, or owning a home. Reportedly, medical bills are a leading cause of consumer debt and related financial problems such as bankruptcy, so to prevent getting to this point, you should have your insurance at place.
Paying for health insurance every month doesn’t mean that all of your medical care is covered. The financial details depend on the plan you have purchased. Overall, health insurance plans are designed to share costs with you until you reach a certain point, the yearly out-of-pocket maximum. Once you hit that point, your insurance company will be responsible for 100% of your health care costs.
In order to get to that out-of-pocket maximum amount, people pay their deductible, which is the amount you pay for covered health care services before your insurance plan starts to pay. The amount varies between plans. Normally, the higher the monthly premium payments, the lower the deductible is. If you prefer to pay less for the monthly premium, be ready to pay a higher deductible, in case you will need to use the insurance. When it does start to share costs with you, it is called coinsurance. This is the amount you pay for covered services after your deductible is met and the insurance company pays as well. The percentages vary between plans.
There are services that come for free within each plan, so before picking a plan you must check what those are. Some examples are certain amounts of visit to the primary care physician for preventative care, a yearly visit to the gynecologist, disease management programs and more.
