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Insurance Overview: Health Insurance
By Molly's Brother | August 2, 2006
This is the first post in my “Insurance Overview” series.
For those friends of mine in the blogosphere who are just starting out in the work world, it’s important to know how to insure yourself.
HEALTH INSURANCE
Throughout my twenties, I’ve had friends who were in between jobs and, in trying to cute expenses, have told me they planned to let their health insurance lapse. I repeated my typical response, “Don’t be caught uninsured.” It became a mantra of mine. Too often people think health insurance is too expensive–and, quite frankly, it is. However, in a moment you can find yourself in a medical emergency and, if you’re uninsured, you might be paying for it for the rest of your life. Medical bills for an uninsured individual may climb to tens of thousands of dollars (perhaps even, hundreds of thousands). You want your money to be put towards savings accounts, retirement funds, and your mortgage. You don’t want to be facing a mountain of debt because your appendix burst. (Talk about an EUE.)
TYPES OF INSURANCE
Look at your life and your medical needs. Research your options. If you are not covered through work, find a place for health insurance in your monthly budget. Now.
There are three main types of health insurance. Even within each general category, there are a multitude of plans that you can buy each offering different monthly premiums, different fees for hospital stays and doctor visits, medication and tests. Find out which option works best for you.
Fees for service: Undoubtedly, the most expensive. With this option, you can go to any provider and your will most likely be covered for almost any medical issue. Furthermore, you don’t need to be referred by other doctors to see a specialist.
Preferred Provider Options (PPO): Allows you to self-refer to any doctor in the network of providers. Also, any treatment or services recommended by the providers are also covered.
Health Maintenance Organization (HMO): Generally, the least expensive. (I hesitate to say “cheapest†because monthly premiums for HMOs can still stretch the budget.) You select your primary physician and, through this provider, you are referred out to specialist within the HMO.
Like all insurance policies—health, auto, life, home—there are many plans to choose from offered within the same organization. Figuring out which option works best for you will take some time and some research. So, if you are currently uninsured or will be soon, you should start your research today.
The following links are great starting points to get you more familiar with what is offered under the different health insurance plans:
- http://kaiserpermanente.org
- https://www.ehealthinsurance.com
- http://aetna.com
- http://heathinsuranceinfo.com (This details insurance options in your state.)
(By the way, the appearance of each link does not in any way endorse any company or website.)
Don’t be caught uninsured. Learn the mantra. Spread the word.
This Friday, be sure to catch “Homeowners & Renter’s Insurance,” the second in the “Insurance Overview” series.
Topics: Insurance |
August 7th, 2006 at 7:06 pm
[…] I’ve covered the basics of health insurance and homeowner’s/renter’s insurance. This week, I’m going to briefly focus on perhaps the most dreaded of all insurance policies: Life insurance. […]