The Basics
April 12, 2009
Health insurance, in this modern world of cancer,
heart disease, AIDS, diabetes, asthma, ageing and
other diseases and afflictions, it is essential to
have some sort of health insurance.
There are many levels of health insurance coverage
available; unfortunately, like most things in life,
you get what you pay for, and good coverage can be
very expensive.
The two most common terms in referring to health
insurance are premium, which is the amount paid for
the insurance, and deductible, which is your
out-of-pocket expense before the insurance pays your
provider.
For instance, you might pay $300 premium per month for
family coverage, and your deductible might be $250 per
person, which means if you fell and broke your ankle
and went to the hospital emergency room, you would be
required to pay the first $250 of the bill.
You can purchase very basic catastrophic coverage,
which would carry a very high deductible and the
premium would be less than comprehensive coverage
which would have a higher premium and lower
deductible.
It pays to invest the time to investigate various
insurance options, taking into consideration your age,
your general health and the health of your family
members.
Your employer may offer group health insurance, which
is most likely the least expensive option for you, and
usually the premium is deducted from your paycheck.
Health insurance is a calculated risk; can you afford
the premiums or are you willing to risk that you would
pay less out of pocket for medical expenses in a year
than the premiums would cost? Consider carefully.
- Prescription Insurance Policies
- Some health insurance policies do not provide for prescription coverage and a separate policy must be purchased for prescription medications. This is an area where it pays to do some homework and research and find the best policy for you. Prescription coverage insurance is not a necessity; like health insurance coverage, it is a calculated risk, although the risk is not as
- What if I leave my job?
- The Consolidated Omnibus Budget Reconciliation Act (COBRA), a law created in 1986, gives workers (and members of their family) who lose their health insurance benefits the right continue their group health insurance for a limited period of time under circumstances such as voluntary or involuntary job loss, reduction in hours, transition between jobs, divorce, adoption and death. Generally, the employee pays up to
- Health Savings Accounts
- If you are considering changing your health insurance policy, you should be aware of the alternative of a Health Savings Account (HCA). Health Savings Accounts started to become available (and legal) in 2004, allowing people with high-deductible insurance policies to set aside tax-free money to fund medical expenses up to the maximum deductible amount. If you dont have to use the funds, it
- Health Savings Accounts
- If you are considering changing your health insurance policy, you should be aware of the alternative of a Health Savings Account (HCA). Health Savings Accounts started to become available (and legal) in 2004, allowing people with high-deductible insurance policies to set aside tax-free money to fund medical expenses up to the maximum deductible amount. If you dont have to use the funds, it
- What Happens When I Retire?
- Health insurance considerations weigh heavily on the minds of people wanting to retire before Medicare coverage kicks in at age 65. Many people put off retirement simply because the cost of an individual health insurance policy is too great on a limited income. What options for health insurance do you have if you choose to retire before age 65? Although they are
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