How Many Types of Health Insurance Are There?
Healthcare is one of the most expensive services in the United States without proper health insurance. A single visit to the local doctor for a mere checkup can cost several hundred dollars. On average, a three-day visit in a typical United States hospital may cost tens of thousands of dollars, or more. It depends on the kind of care you receive. It is simply not possible for an average citizen to pay such huge amounts of money for limited healthcare.
The exorbitant healthcare costs are also the single most rampant cause of increasing bankruptcy claims. A patient or their loved ones are vulnerable at the time of treatment. They do not wish to prioritize money over quality treatment. They rarely hesitate over signing up for expensive procedures, if it means their lives could be extended a little. Only once the bills have accumulated, they realize the enormity of their errors. They have no choice, but to take huge loans, or declare bankruptcy. Health Insurance is an excellent way to reduce such costs to much more reasonable amounts.
How Health Insurance Works
When you buy a health coverage, you will be expected to pay an up-front premium to the insurance carrier. This payment will ensure that you share the ‘risk’ with many other buyers, with situations similar to yourself. It is common sense that majority of people live healthy lives. Getting sick is never coveted by any sane person. That is why the premiums are accumulated until someone gets sick. These premium dollars will cover expenses of those small number of sick or injured policy buyers. Insurance companies study the risk extensively. Their main goal is to collect enough premium payments to cover the healthcare costs of the buyers.
Types of Health Insurance
There are many different types of health coverage available in the United States. Every one of these types operates by different rules and regulations. Following four are the most important among them;
1. Obamacare Insurance
Obamacare is officially known as Affordable Care Act, or ACA. It is a very comprehensive healthcare reform bill. It was signed into the law by President Barack Obama in 2010. This law includes a list of provisions related to healthcare. Its main purpose is to extend health coverage to millions of uninsured American citizens. The ACA expands eligibility for Medicaid. It creates health insurance exchanges and prevents insurance agencies from denying insurance due to pre-exiting conditions. The children can enjoy their parent’s insurance plan until they are 26 years old.
Obamacare was designed to make substantial reductions in the cost of heath insurance coverage for the qualified individuals. ACA provides premium tax credits to the subscribers. It has cost sharing reductions to help lower the cost for less fortunate individuals and families.
Premium tax credits are designed to give substantial reduction in your monthly healthcare insurance bill. Cost-sharing reductions further lower the out-of-pocket costs for copays, deductibles, and coinsurance. Your overall out-of-pocket costs are substantially lowered as well. Every Obamacare compliant health insurance coverage covers specific health benefits. Such as;
- Breastfeeding and Newborn Care
- Drug Rehabilitation
- Family Planning
- Laboratory and Testing Services
- Mental Health
- Pregnancy and Maternity
- Prescription Medications
- Preventive Services
- Pediatric Services
- Use of Ambulance
- Various Emergency services
2. Group Health Insurance
Group Heath Insurance is an excellent form of healthcare coverage which covers a group of members. Such groups usually comprise of employees of a company or members of an organization. The members of group receive healthcare services at reduced prices because the ‘risk’ uniformly spreads across multiple policyholders.
Generally, companies or organizations purchase this policy. Furthermore, it is offered to the employees, or members. Group health plans generally require at least 70% participation for validation. The members of said company, or organization have the option to accept or decline the offer for participation.
Some plans have degrees of coverage for the participants. Some offer basic coverage, while, better plans offer advanced coverage with plenty of add-ons. Premiums generally split between the participants and the organization. The coverage through group healthcare insurance sometimes extends to include the immediate family members or dependents of a participant.
Group Health Insurance costs much lower than many of its counterparts. Mainly, the reason for reduced costs is spread of risk among group members. This coverage is affordable than many other individual plans available in the market.
3. Dental Insurance
Dental insurance is necessary to receive a quality dental healthcare in an affordable manner. Almost all health insurance services are difficult to understand for the inexperienced. It has way too many provisions, and details. However, compared to other health policies, dental insurance is not difficult to understand at all. most dental policies are very straightforward. They specifically outline what procedures fall under coverage. Moreover, they also outline how much you have to pay in out-of-pocket expenses. Dental insurance is available for purchase as a standalone policy. You can also purchase it as a part of your existing health coverage portfolio.
Dental insurance provides coverage for issues related to the teeth and gums. It also covers preventative care, such as annual cleanings. There are many procedures available in the dental market. Not all of them fall under the dental insurance policy. Cosmetic procedures, such as crowns and teeth whitening procedures are among the procedures which typically receive no coverage.
The various other costs, such as deductibles, co-pays, and coinsurance will apply in the policy. There are several policies which have an annual coverage maximums, that are relatively low. They range from $750 to $2,000. Majority of dental policies follow a pre-determined 100-80-50 payment structure. It means, the subscribers pay;
- 100% for preventive care
- 80% for basic procedures
- 50% for major procedures
4. Supplemental Health Insurance
Supplemental Health Insurance helps you pay for many expenses. Specifically those which are not covered in traditional healthcare policies. This includes various out-of-pocket medical expenses, such as co-pays, deductibles and coinsurance etc. A primary policy provides coverage for many things, but not everything.
Any major medical emergency or procedure generally causes a disruption in your earnings. However, the household expenses do not stop just because you are ill. Supplemental insurance provides coverage for such expenses. It also covers many other expenses which are not covered by primary insurance. It can assist you in payment of many out-of-pocket expenses, when a serious illness or accident happens. This policy is basically helps you in your time of need. All the benefits go directly to you, unless states otherwise. This includes the usual household expenses, such as utility bills, childcare, and grocery shopping.
A supplemental health insurance policy is more cost effective than you can imagine. Its cost is very low. A monthly premium will cost you less than what it takes to take your family out for movies. This policy provides a peace of mind when any unexpected situation occurs.
Ensure the Best Treatment for Yourself and Your Family Through the Best Health Insurance in Texas
SG Financial Inc. can provide you with the Best Health Insurance in Texas. We have worked tirelessly to establish a reputation of honesty and efficiency. Our insurance policies specifically benefit you. Receive maximum privileges for yourself and your family through our dedicated services.