Having health insurance can help you manage expenses when you go to the doctor for preventative care or experience a healthcare emergency and need to go to the hospital. If you are currently reviewing your policy and looking into new health insurance, there are several things you need to know about health insurance and how it works.
- Coverage—Most health insurance plans cover a wide range of medical services, including hospital stays, doctor visits, prescription medications, preventative care, and more. Carefully review any health insurance plan you consider, so you understand exactly what you have coverage for.
- Premiums, deductibles, and copays—Most health insurance plans require you to pay premiums, which are regular payments made to maintain coverage. Your health insurance plan may also have a deductible, which is the amount you must pay out of pocket before your insurance will kick in. And finally, copayments are fixed amounts you pay for specific services, such as a medication or doctor’s visit, with insurance covering the rest.
- In- and out-of-network providers—Depending on your health insurance plan, you may have a network of healthcare providers that pay negotiated rates for care. When you go to an in-network provider, you will typically pay less out of pocket for medical care.
Don’t rush into any decisions when you start reviewing health insurance plans. Review each plan carefully and determine if it works well for your finances and the level of healthcare you and your family members need.
