Few things are more important than your health, which is why it’s crucial to take steps to ensure that you and your family receive the care you need without having to worry about whether or not you can afford it. When you have proper health insurance, you have the peace of mind of knowing that unexpected medical expenses won’t ruin your finances. At the same time, it’s important to protect yourself against unpleasant surprises by being aware of 10 surprising facts about health insurance that may change how you approach this important topic.
1) The future of health insurance
In the future, health insurance will continue to be an important part of our lives. It will help us pay for unexpected medical bills and protect us from financial ruin. However, there are some changes coming that you should be aware of.
2) Health insurance costs more than you think
While health insurance is often expensive, the costs of not having it can be even higher. According to a recent study, the average hospital stay without insurance costs $3,300 – and that’s just for one night! If you are hospitalized three times in a year, your total cost could add up to over $11,000. Without insurance coverage, you may have to pay these costs out-of-pocket or risk going into debt if you don’t have savings. Your credit score will suffer: Those who have medical debt are more likely to end up with damaged credit scores and even higher rates on loans in the future.
3) How long do health insurance plans last?
Most health insurance plans last for one year, though some may be renewed on a month-to-month basis. Your premium payments will usually be taken out of your paycheck on a pre-tax basis, which can save you money. Health insurance typically covers doctor visits, hospital stays, prescription drugs, and preventive care. However, it generally does not cover dental or vision care.
4) How to pick the right type of plan
The type of health insurance plan you need depends on many factors, including your age, health, whether you have a family, and your budget. Here are ten things to keep in mind when choosing a health insurance plan:
-There are four main types of plans: HMOs, PPOs, EPOs, and POS plans.
-HMOs offer the least expensive premiums but also the least coverage. PPOs offer more coverage but also come with higher premiums.
5) What is a deductible?
Your health insurance deductible is the amount of money you have to pay out-of-pocket before your health insurance plan starts to pay for covered services. For example, if you have a $1,000 deductible and $3,000 in covered medical expenses, you would pay the first $1,000 and your health insurer would pay the remaining $2,000.
6) In or out-of-network coverage?
One of the most important factors to consider when choosing a health insurance plan is whether you want in-network or out-of-network coverage. In-network coverage means that your insurance plan will cover services provided by doctors and other healthcare providers who have agreed to accept the terms of your particular insurance plan. Out-of-network coverage means that your insurance plan will cover services provided by any doctor or healthcare provider, even if they don’t have a contract with your insurance company.
7) Is an HSA better than a high deductible plan?
If you’re trying to decide between a high deductible health plan (HDHP) and a health savings account (HSA), it’s important to understand the key differences. An HSA is a tax-advantaged savings account that can be used to pay for qualified medical expenses, while an HDHP is a type of health insurance that typically has lower monthly premiums than other plans.
8) What happens if I don’t have health insurance?¡
If you don’t have health insurance and something happens where you need medical attention, you will be responsible for paying the entire bill. This could mean thousands of dollars in debt, or even bankruptcy. Not having health insurance can also affect your ability to get a job, as many employers will only hire those with coverage. Additionally, if you do not have health insurance and you get sick or injured, you may not be able to get the care you need in a timely manner, as most hospitals will prioritize those with insurance.
9) How much does it cost to see a doctor?
One of the most common questions people have about health insurance is how much it will cost them to see a doctor. The answer, unfortunately, is that it depends. For example, you may pay nothing out-of-pocket for your visit if you are covered by Medicare and go to a participating provider in their network. You might also have some out-of-pocket costs with an HMO plan if you don’t meet your deductible before getting care and end up paying coinsurance or copays. If you’re insured by an EPO or PPO plan, you could end up paying more than the deductible before receiving benefits on your care.
10) Should I join my employer’s health plan?
If you’re healthy and rarely visit the doctor, you may be better off saving money by opting out of your employer’s health plan. However, if you have a pre-existing condition or often get sick, you’ll likely benefit from being on your employer’s health plan.