Insurance is a very interesting concept that most people understand. But what some don’t know are the different types of benefits that come with different insurance plans. We all have homeowner and auto insurance but hope to never make use of it. If we have a chance of using it, it definitely means that something bad has occurred. The same mindset goes for medical insurance. Most healthy people don’t believe that they would require health insurance as they do not visit the doctor. Insurance isn’t for the things we have planned or expected to happen, but for the things that we have no idea will ever happen to us.

Even if you feel quite strong and healthy, every person needs to see the doctor sometimes. If you have insured your health, you’ll get a free annual checkup automatically. The doctor will do blood work on you and perform a check on your blood sugar and cholesterol to make sure that you are in good shape. These simple check-ups will detect health problems long before you know they ever existed. If you discover every threat early enough, you may be in a position to treat them before they become life threatening.

Medical insurance can help you cater for cost of your regular medical check-ups, contact lenses and glasses, surgeries and even emergency treatments. There are 2 basic types of medical insurance plan, managed plan and the indemnity plan. Indemnity plan also referred to as free for service plan has wider freedom and flexibility in the options of the insured. He/she can pick the hospital, doctor, laboratory and other health service providers of his/her choice as long as it’s included in the medial contract. However, the plan does not cater for the full payment, but instead the insured caters for 20% of the total amount. This type of plan only covers accidents and illnesses but preventive care such as birth control and flu shots aren’t included. Also, coverage of prescription drugs’ expenses and psychotherapy will depend on the company and policy.


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Managed Care Medical insurance differs from indemnity plan in that, the choice of hospitals, doctors, labs and other medical service provider is narrowed to only those with contracts with Health Maintenance Organization(HMO). Health services are received only if they are authorized by the plan. In case the insured insists on engaging on non-authorized medical service providers, then the service and care costs offered won’t be catered for by the company. Mental health treatment and preventive care are covered by the plan.

New health benefits can come with a waiting time period for pre-existing conditions. In case you don’t have any conditions present, it doesn’t mean you won’t have them in future. Most people don’t realize that the human body is susceptible to illnesses throughout our lives. If you had a constant coverage before acquiring the new plan you won’t have to fret about the waiting period. For this reason, acquiring the least costly plan accessible like a short-term medical insurance arrangement to bridge your gap in coverage could save you a lot of cash on claims in future. Having a medical insurance prevents you from having pre-existing condition waiting periods.

In addition, if you have coverage you’ll receive a discounted rate for health services. Insurance companies negotiate medical rates with doctors and health facilities. In case you don’t have a medical cover you’ll be billed a much higher rate for similar services. Even if your plan covers only expense with a deductible and co insurance, you’ll be in a position to receive the discounted rate for your charges.

Most people don’t realize how costly health care is. A visit to the doctor may be only a few hundred dollars, but in case an individual needed something more specific and rare such as anti-venom, the bill may be so big. For example, I had my cousin, who was bitten by a snake as they went out camping and her parents couldn’t believe the hospital bill that came. But since her health was insured, the whole 25,000 dollar bill was cleared by the insurance company without spending a single penny. A snake bite isn’t something you can ever budget for, but with a medical insurance cover you won’t have to budget, neither will you get to worry about it.

To choose the ideal medical insurance company for you and your family, you first need to have a good look at your needs and health history. Don’t opt for a very expensive health cover plan if you know you won’t benefit a lot from it. For instance if your family is prone to accidents or need preventive care very often, you need to go for a plan that will cater for all this with the cheapest rates, and you’ll maximize your savings.