What is Health Insurance?
Health insurance means just what it says: it's a way to insure yourself against health catastrophes such as illness and injury. In return for payment of a monthly fee, called a premium, the insurance company agrees to pay the price of a set amount of medical expenses, minus any deductible you may choose. This amount depends on the type of health plan you purchase. In the USA, health insurance falls into three categories: Health Maintenance Organizations, Preferred Provider Organizations and traditional "fee-for-service," or "indemnity" plans.
Why is health insurance important?
Unlike many other industrialized countries, the USA has no nationalized health care system. If you don't have health insurance and you fall ill, you are responsible for paying all medical fees, which are expensive in the USA. If the illness includes a hospitalization, costs can run into the five-figures. Health insurance helps to defray these huge and often unexpected costs.
Steps:
- Determine if you are already covered.
You may already have health insurance through your employer or university. Call your company's human resources office or your university's accounts office to find out if you have insurance through your affiliation with the organization. If so, request literature on your plan to find out what is covered under your current plan. You may find that you need more coverage than what is offered, especially if you have children or a chronic illness.
- Evaluate your current and future medical needs.
If you aren't covered through your employer or university, or you need more coverage, you will have to shop around. Health plans vary widely. If you have a condition requiring regular monitoring and medication, like diabetes or heart disease, then you may opt for one of the more comprehensive plans. If you are in reasonably good health and don't anticipate problems in the near future, you might be able to get by with a more basic policy. In general, if you have a specific condition, make sure your plan covers the treatments you need.
- Consider your lifestyle.
Do you travel often? Some plans have an extensive network of doctors and hospitals spread over one or two states, while others offer nationwide coverage with fewer doctors. If your job requires a lot of traveling throughout the country, or if you plan to visit other parts of the country during your stay, then the latter plan might suit you better. And if you want to be covered under your health plan when you visit your home country, you will have to ask for extended coverage.
- Figure out how much you can afford to pay in premiums and medical costs.
Once your needs are identified, choose the plan that meets most of your health needs with the least out-of-pocket costs. Generally, plans with higher premiums charge a smaller fee for each doctor visit. This fee, known as a co-payment, is charged every time you visit a doctor's office. If you have small children, who often require frequent visits for routine complaints, you may prefer plans with low or no co-payments. If you only occasionally visit the doctor, you might be happy with a plan that may have a higher co-pay per visit but offers complete coverage in case you are hospitalized. Acquaint yourself with the claim reimbursal policy of each plan. Sometimes situations arise where you may be asked to pay for some tests or medication up front, but the plan offers to reimburse your expenses later. In such cases you will need to file a claim with your healthcare organization showing the need for the particular test or medication as well as the expense incurred.
- Shop around
This is the most important part of the process. You can compare many U.S. insurance plans online using Insurance Web, a service for both consumers and insurance companies. Companies such as Europ Assistance, U.S. Health Plans, the International Medical Group and Global Health Asia advertise international coverage. Take note of premiums, deductibles and co-payments, as well as what is covered in each plan. When shopping for a plan, choose about three or four plans you like before you call the company to enroll. If you can compare one plan to another when talking to the insurance salesperson, you will be in a better situation because the salesperson will know you are doing your own research. Additionally, by comparing similar plans, you may be able to choose which one fits your needs better. To speak with a representative and ask questions, call the telephone number on the company's Web site or in the company's marketing literature. Usually, this number is an (800) or (888) number.
- Decide which plan is right for you.
Call the company you have chosen and enroll in the plan. Generally, to purchase a health plan, you will need to provide personal information such as your age, previous medical conditions, and information about your dependents, if you have any.
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