Health insurance is a complicated subject and it is not surprising that so many people do not fully understand the complexities of a health insurance plan. For example, people are often confused by the fact that some patients visiting their doctor have to pay what is called a “co-pay” when they leave, while other patients are not asked to pay anything at all. Both sets of patients have health insurance but, in simple terms, they have different types of plan.
In many cases you will have insurance provided by your employer and he will pay the major part of any monthly or annual premium to support the plan. Each time you visit the doctor however you will be asked to make a “co-pay” or “co-payment” which is simply a small contribution towards the cost of treatment. This is common in many insurance plans and helps the insurer to keep premium payments down in a fiercely competitive market and also helps to deter people from making unnecessary visits to the doctor for minor complaints which they can treat themselves quite adequately at home.
If you do need to visit the doctor frequently then one way to help reduce your expenditure and to even out your medical expenses from month to month is to open a Healthcare Savings Account or HSA. In this case you elect for a fixed sum to be deducted from your pre-tax income each month and deposited on your behalf into an HSA. You can then draw money from this account to meet the cost of health care and effectively reduce your healthcare costs because the money in this account comes from your salary before, rather than after, you pay tax on your salary.
Another way to pay for healthcare if you are over the age of 65 or suffer from certain disabilities is Medicare which, while it will not meet all of your medical expenses, will meet the majority of your medical bills. One drawback to Medicare is that it does not cover the cost of drugs or of nursing home fees and it is important for you to check the many different restrictions which apply to Medicare plans. It is not all bad news though as there are prescription plans and low cost prescription discount cards available which can save you up to half the cost of purchasing prescription medications.
These are of course just a couple of ideas and the secret really lies in looking at a variety of different plans and deciding just which plan would suit you best. For example, would you prefer to pay a higher monthly or annual premium and not pay for treatment, or to pay lower premiums and have to make “co-pays” each time you attend for treatment?
One final thing to remember is that the cost of your health insurance plan and how you pay that money is only one consideration and you should never choose a plan solely on the basis of how much it costs. Look carefully at all of the benefits you will receive from a plan, as well as the restrictions on cover, and select a plan which best suits your own needs.
Tags: e health insurance, ealth insurance, health, health ins, health insurance, health insurance plan, healthcare, insurance, insurance plans, medicare