Before you decide which health insurance plan to use for you or your family, research your options and read all the fine print. You may want the freedom of a PPO or the cost-effectiveness of an HMO, but you still need to see what fits needs of your family the best.
History
Basic health insurance was introduced to the public in 1694 by Hugh the Elder Chamberlen. In the nineteenth century, people could purchase accident insurance, which is basically what we know as disability insurance. In 1850, health insurance was first offered in the United States by the Franklin Health Assurance Company of Massachusetts to cover those who worked in the railroad and steamboat industry in case of accidents. Basic health insurance plans weren't offered by companies until about 1911. Before these types of medical insurance policies were introduced, people were expected to pay for all health-related services at the time rendered. In the 1920s, hospitals offered prepayment plans, which led to the organization of the Blue Cross insurance company.
Types
There are two basic types of health insurance: traditional and managed. These two basic types of health insurance can also be divided further into categories, including fee-for-service, PPOs, POS and HMOs. Fee-for-service allows people to choose which doctor and hospital they want when they need medical services. The downside is that it tends to be more expensive, and you must have clearance from your insurance company before you go to the emergency room unless you are incapacitated.
Preferred provider organizations, or PPOs, have a network of health care providers and give their clients a price break if they stay within the network. The only downside is that if your doctor is not in the network, you will pay more for her services. In many cases, preventative care may not be covered.
Point-of-service, or POS, is much like a PPO except you choose one of the network's primary care physicians. You may go out of the network, but you will need a referral from the primary care physician, and you may have to pay more out-of-pocket expenses. POS policies may cover more preventative care, and if your primary care physician refers you out of the network, most expenses will be covered by your POS.
Health maintenance organizations (HMOs) are one of the least expensive but most restrictive of the networks. Most of the time you will encounter very low co-pay, and sometimes you may have no co-pay responsibility if you use the services of medical centers or doctors within your network. You may also need clearance before you visit an emergency room with an HMO.
Geography
Basic health insurance varies from country to country. Countries like Australia, Canada and the United Kingdom have programs known as medicare. Australia offers its residents free universal health care in and out of the hospital. France offers a very complex health care system that is actually rated as one of the best in the world. The systems place importance on preventative care, but the sicker a person gets, the less they have to pay out of pocket. In the United States, basic health insurance is covered by private or nonprofit organizations. There are several public insurance programs in the U.S. like Medicare, Medicaid, TRICARE, SCHIP, Indian Health Service and Veterans Health Administration, just to name a few.
Benefits
Basic health insurance is beneficial if you have a family, and it's even important if you are a single adult. Because preventative care is the best way to catch a problem before it gets worse, it's important to visit your doctor for an annual physical. Many basic health insurance policies place importance on preventative care, which means less money out of your pocket in the long run. Many basic health insurance plans even cover other services, like therapy visits, physicals, prescriptions and other aspects that contribute to a healthy life. In the long run, basic health insurance saves you money, and it can save your life because people are more likely to get treatment for health problems if they are covered by insurance.
Warning
Be wary of bogus health insurance companies. Unfortunately, there are people out there looking to make a quick buck. Some warning signs of a bogus company are names you've never heard of and health insurance sold as "health discount plans," but they aren't really health insurance plans. The best thing to do is find a reliable company by checking the Better Business Bureau's website or checking with an agent.
Tags: health insurance, preventative care, Basic health insurance, health care, health insurance, health insurance plans, insurance plans
