Types Of Health Insurance Coverage


Health insurance is a kind of insurance which covers an area or the entire risk of an individual incurring medical costs. The area covered by health insurance varies from plan to plan. This insurance basically offers two kinds of coverage-health maintenance organizations and major medical plans. Major medical plans cover most expenses like surgery, dental care, etc. as well as major life insurances.

Major medical insurance plans offer the maximum sum assured for a particular health insurance amount. Usually, this coverage is meant for very costly medical treatment like surgery, etc. But health insurance plans also offer coverage for a wide range of less expensive healthcare services. Since the cost of medical treatment is likely to increase in the coming years, having a sum assured policy which offers a minimum sum assured for a particular period of time is very important.

Under healthcare policies, people are insured for specific illnesses or treatments. When you purchase a health insurance policy, you can choose the type of healthcare coverage that you want. In this case, the two kinds of coverage that most people prefer are health maintenance organizations (HMOs) and major medical plans. HMOs basically require you to get your medical treatment from a certain set of doctors who are approved by the HMO. You have to pay a low monthly premium for this option, so it is often the most affordable way of getting health insurance.

Major medical plans, on the other hand, involve higher deductibles and fewer benefits. Since there are fewer expenses for medical service, there are less coinsurance as well. The total cost of your medical bill will be lower since there are fewer medical expenses for your treatment. Major health insurance companies typically allow the deductibles to be paid through coinsurance, which means that each coinsurance will cost the same amount, thus making it more affordable.

You can either choose a deductible or a co-payment in choosing a health plan. If you go for a higher deductible, you have to pay more money out of pocket. For example, if your deductible is $100, you have to pay at least that much out of pocket. However, you can also choose to pay as little as possible in deductibles. This type of policy usually allows you to have 100 percent coverage for all medical expenses, regardless of how much they are worth.

Aside from the premiums and deductibles, insurance coverage also includes other things like hospitalization and surgical costs. When you go for coverage, the insurance company will shoulder most of the cost of your hospital bills, including room rent. Room rent can sometimes be as high as several thousand dollars per month. If you cannot afford this sum assured, you can reduce the coverage to a certain extent by increasing the deductible.