If you have a health insurance policy, you’re probably aware of the premiums you’ll have to pay. While it’s true that the cheapest plan won’t cover annual physical exams or preventive care, this type of plan offers more options. In this article, we’ll examine the types of premiums you can expect to pay and how they compare to each other. You may even be surprised at how much difference they make.
No one plans to get sick or injured, but the consequences of illness and injury can be disastrous to our health and leave us with staggering medical bills. A health insurance policy can help you minimize the risk of costly illnesses, hospitalization, and surgery, as well as help cover preventive care. In addition, it can even protect your finances in case you are injured or become ill. It’s important to remember that you may not have the funds to pay for a major medical bill, but having health insurance can help protect you against the costs of these unexpected events.
Another type of health insurance is known as a PPO. It’s similar to an HMO, but patients can visit any doctor and pay less for their care if they belong to a PPO. PPOs also allow patients to choose any doctor they wish, and out-of-network specialists may cost more. However, they are a good option if you aren’t concerned about the cost of out-of-network care.
Health insurance plans vary greatly in terms of what they cover. You’ll likely need to pay a premium to your insurer if you expect to get sick. However, this premium is worth it because the insurance company will cover some medical costs for you. A policy will often pay 80 percent of the cost of a procedure, while the remaining 20 percent is your responsibility. Depending on the coverage level, this percentage can be quite high, so you’ll want to be certain your budget can cover the expenses.
In addition to deductible amounts, you can use your HSA to pay for your own healthcare. Your HSA allows you to set aside a portion of your premiums before taxes are deducted. If you’re self-employed, you can even use this money to pay your premiums. Health savings accounts are tax-deductible accounts, and you’ll be able to use the money in your HSA for eligible medical expenses. A bronze plan may also be a HDHP, but it won’t cover many of the other costs.
In general, your health insurance policy will require you to pay a deductible before the insurer will begin paying for covered services. For example, if your plan requires you to pay $1000 for covered services during the year, you will have to pay $20 before the insurer will start paying the rest. If you go over this amount, you’ll need to pay a copayment of $20 or more, unless the doctor provides free care. A co-pay will not count toward your deductible, so it’s important to understand this term.