In the last article, we talked about why having health insurance would benefit you, but before you go ahead and get one, we should probably discuss first what your options are. There are different types of health insurance policies, each one of them has a slightly unique way of delivering their benefits to their customers. But, even though you have a lot of options, do not think that you only need to get one, you could, but there are a lot more advantages if you choose to combine two, or the best thing you can do is to get all three. Here are the 3 types of health insurance and how to pick the right one for you.
1.) National Health Insurance
It doesn’t matter which country you are in, chances are, the government is running some kind of a health insurance provider. For most people, this is what they normally have, because not only it is affordable, it is also usually mandated by the government. It is a progressive insurance program that extends medical expense assistance to all the citizens that need it, whether they are employed or not. For employees, it is mandatory to be insured and half of the contribution costs would be shouldered by then and the other half, by their employer. In most cases, national health insurance works by giving the insured a lump sum amount depending on the specific condition of the insured. There is also a certain amount that would help over the hospitalizations costs and there are free services if they are admitted to a government-owned facility.
Is This The Right Insurance Policy For You?
Like we said, almost all the citizens in a country are already covered by the national health insurance, particularly those who are employed. But, while the national health insurance would provide you medical expense assistance, it might not be enough to cover extensive patient hospitalization and serious illnesses that would need expensive treatment and procedures.
2.) Health Maintenance Organization (HMO)
Health Maintenance Organizations or more commonly known as HMOs are commonly privately owned entities that provide other companies a more comprehensive health insurance policies for their employees. HMOs usually provide the insured with a consumable amount to be used for outpatient and inpatient services, and they usually include optional benefits for a more expensive premium.
How do HMOs Work?
The way HMOs work is that there is a set amount that can be used to cover inpatient and outpatient service costs without the insured shelling out a single penny. These expenses include:
- Consultation fees
- Admission fees
- Emergency room fees
- Laboratory tests
- Medicines
- Professional fees
- Check-up fees
Is This The Right Insurance Policy For You?
If you are employed by a company that provides HMO, there are no obvious reasons to say no. But, if you are looking to avail coverage as well for your family, you have to plan it very carefully as most of the time, the extra cost of adding dependents would cost much more than just getting their health insurance somewhere else. If that’s the case it might not be practical for you to avail it. If however you are self-employed or unemployed and you have to pay for HMO out of your own pocket, you might want to do your research first in order to assess if you would get your money’s worth when you consider availing health insurance from an HMO. If it fits your needs and you feel like you’ll maximize its benefits, go for it, otherwise, it might cost a little too much for you.
3.) Health Insurance Plans
Usually, health insurance plans give monetary assistance to cover your medical and healthcare expenditures on a cash reimbursement process. The difference of health insurance plans from HMOs is that you would need to have cash at hand to pay initially for your health care expenses out of pocket which you can then reimburse later. Also, the amount that health insurance plans cover is significantly higher, and for more severe healthcare needs, the financial coverage they can provide is literally a fortune.
Is This The Right Insurance Policy For You?
The reality is health insurance is one of the most expensive investments one can make, one that could easily take more than half of a paycheck of an average citizen. The price of a health insurance policy does increase the more you age. That being said, being able to afford a decent health care insurance policy doesn’t mean you have to be a member of the aristocracy.
If you’re young at age, there is a big chance that your premium won’t go over $60. But if you’re older, it might be a little more than that. Also, if you have reached past the age of retirement, there is very little chance that you would even get approved to avail one. If somehow you manage to get approved past retirement age though, it’s certainly not going to be cheap.
With all that being said, having a health insurance policy is going to always be a win-win. A great rule-of-thumb to follow is that don’t only look at getting the cheapest one, you should always go for the one you actually need. If you are looking to get the most value out of your health insurance policy, it would be wise to make sure that would actually potentially use all the benefits that are included in it, and it would also be wise to research your family’s health history in order to determine the possible health issues you currently face or might face in the future.
When we’re choosing a health insurance provider, the majority of the people would first look at the price and would normally default on what’s the cheapest. But, just like with most things, cheaper means you only get what you pay for, this means limited benefits. So before you pull the health insurance trigger, it pays to scrutinize your options first and get the best one for you, all things considered.