The Basics of Health Insurance

I remember the excitement of getting my first real job after college, finally a chance to start my career and make some real money. I also remember the utter confusion when I sat down to review my benefits and choose health insurance for the first time in my life. Until then I just showed up to the doctor’s office that I had gone to since I was just a kid with no idea as to what type of health insurance my parents had. Before calling any Michigan Insurance Companies to inquire about health insurance here are a few of the basics.

There are two main types of health insurance available. The first is an indemnity plan which allows you to choose your own doctors and pays for your medical expenses. It may pay the entire amount, part of it, or a limited amount. The other type of insurance is a managed care plan. If you have ever heard of an health maintenance organization (HMO) or a preferred provider organization (PPO) you are talking about a managed care plan. These provide a more broad coverage to you, but they involve an arrangement between your insurer and a specified health-care provider network. Before selecting the type of health insurance be sure it provides the right type of coverage for you.

Another basic bit of health insurance information you should make yourself aware of is what does your health insurance cover. A good policy may cover hospital expenses like room and board, surgical expenses, physicians expenses while visiting a doctor’s office, and lab coverage for X-rays and tests. Some policies may also include prescription drugs or vision, dental, chiropractic, maternity and preventative care. It is important to review these coverages when comparing plans for yourself.

Costs was a big question for me when I first selected health insurance. In addition to your monthly premiums you may have other costs that could depend on your specific health-care plan. These additional costs could come in the form of co-payments, deductibles, and coinsurance.

Where do you get health insurance? For me I was lucky enough to purchase it through my employer. Other than your employer you may choose to purchase an individual plan on your own. Before choosing which plan is best for you, you need to decide what plan will offer you the most benefits and flexibility for the lowest cost. You definitely need to compare, shop around, and get several quotes from Michigan Insurance Companies to choosing which health insurance is the best for you.