If you're in good health, then you have a large number of health insurance policies available to purchase. The first place to look is at your place of work. Group health insurance offers lower rates for two reasons. Group insurance insures more people at one time and keeps the administrative cost lower. In addition, employers often pay a portion of the premium. If you don't have the option or find the policy unacceptable, start looking for one that fits your needs and your pocketbook. There are a number of health insurance plans for individuals in good health available.
Types
When you start to look, you'll notice fee-for-service plans called indemnity plans; managed care plans that include HMOs, PPOs and POS plans; and high-deductible plans with health care savings accounts. Managed-care plans have specific doctors or health care providers you must use to receive payment or have the lowest co-pays. Indemnity plans allow you to use any physician you choose.
Health Savings Accounts with High-deductible Plans
If you select a health savings account (HSA) with a high-deductible plan, you might save yourself a considerable amount of money if you're healthy. You can tuck away dollars to pay for medical expense and deduct it from your income at tax time. It grows tax free unless you use it for something besides medical expense, then you normally have a penalty. As of 2009, anyone with at least an individual deductible of $1,150 with $5,800 out of pocket or family deductible of $2,300 with $11,600 out of pocket could tuck away money in an HSA. Families could tuck away $5,950 in the HSA and individuals as much as $3,000. If you're over 55, then the limit increases by $1,000. Unlike flexible spending accounts through employers, the money is yours to accrue if you don't use it.
Managed Care
Managed care insurance normally is more inexpensive that traditional indemnity insurance. HMOs, the original managed care policy, are inflexible and only pay for specific physicians. Your primary care physician decides whether you can see a specialist and still have the plan pay. PPOs and POS plans are far more liberal and offer incentives such as a lower deductible or co-pays if you see a network doctor. Check the list of doctors available carefully. If your physician isn't on the list, the plan might be more expensive in the long run.
Indemnity Plans
Indemnity plans were the original types of plans available for health insurance. There's a deductible, co-pay and maximum out-of-pocket amount. You must meet the deductible first, then pay a co-pay. After that, the insurance company pays the rest. Once you meet the maximum out of pocket, the insurance company pays everything covered that is reasonable and customary. These plans tend to be more expensive but far more liberal in coverage.
Lifetime Maximum
Look for a high lifetime maximum. You may be in good health today, but it only takes one catastrophic illness to wipe out a small maximum. Consider the fact that once you're ill, normally you're stuck with the insurance plan since it's difficult to get a different one. Increases in the lifetime maximum aren't expensive since they aren't often used, but well worth the few pennies a month.
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