Health insurance is like that safety net that helps cover the costs incurred due to illness or surgery. It often works in two ways; either your insurer gives a reimbursement for your medical expenses or the bills are paid directly to your healthcare provider. All things being equal, a functional health insurance policy should cover hospital admission, checkups, consultants, and more
Why You Need Health Insurance:
Health is wealth and indeed securing a health insurance policy can help you achieve that. It offers financial security against substantial medical expenses. In its absence, you may be confronted with hefty bills for regular healthcare, emergencies, or chronic treatment. This type of insurance is designed to make sure that you can receive necessary medical attention without worrying about excessive out-of-pocket costs.
How Health Insurance Works
As with every other insurance, health insurance also requires the payment of fees/premium every month. In return, the insurer agrees to cover a range of medical expenses, either in full or in part, depending on the terms of your policy.
Premium
The amount you pay monthly or yearly to maintain your health insurance policy.
Deductible
The amount you pay out-of-pocket for healthcare services before your insurance begins to cover the costs.
Copayment (Copay)
A fixed amount you pay for a covered healthcare service, usually when you receive the service.
Coinsurance
The percentage of costs you pay after you’ve met your deductible.
Out-of-Pocket Maximum
The most you have to pay for covered services in a plan year. After you reach this amount, the insurance company pays 100% for covered services.
Types of Health Insurance Plans:
Health Maintenance Organization (HMO)
Requires members to get healthcare services from a network of designated providers and typically requires a referral to see a specialist.
Preferred Provider Organization (PPO)
Offers more flexibility in choosing healthcare providers and doesn’t require referrals for specialists. You can see out-of-network doctors, but it will cost more.
Exclusive Provider Organization (EPO)
Requires members to use the network of providers except in emergencies. Unlike HMOs, referrals to see specialists aren’t necessary.
Point of Service (POS)
Combines features of HMOs and PPOs, including requiring a referral from a primary care doctor to see a specialist.
How We Can Help:
At Providence Financial Services, we make finding the right health insurance easy. Our knowledgeable team will explain your options clearly and help you choose the best plan for your needs and budget. We can help you source for individual coverage, family plans, or employee benefits according to your preference.
