Learn about the basic elements of health insurance.
Health insurance is both simple and complicated. It’s simple because most of us know that the value of insurance is that it protects against large expenses down the road. Car insurance protects against the expense of repairs after an accident. Homeowners insurance protects you from the expense of repairing your home after a disaster. Life insurance protects your loved ones against the expense of funeral arrangements. Even disability insurance pays part of your salary to cover everyday expenses if you’re disabled and can’t work. Health insurance also protects against expenses but they can be both routine and catastrophic. Read on to learn more about the basics of health insurance.
What Is Health Insurance?
Health insurance is a policy that you pay for that limits or reduces the amount of money you owe to access health services. Different policies have different levels of coverage and different rates that you pay. In an ideal world, universal coverage would mean that everyone has access to coverage that provides affordable care, and everyone has continuous coverage, meaning they don’t lose it and risk not accessing healthcare that they need. While it isn’t an ideal world, most people have access to some form of health insurance now. The insurance rates vary between different policies. They also have different levels of coverage.
What Are The Qualities Of Health Insurance?
Shopping for insurance usually starts with the payment amount, or premium. This is the amount that you pay (or have deducted from your paycheck) for the policy. On top of that, you may have a copay, which is the amount you have to give to the doctors’ office when you access services. Most policies also have a deductible – this is the amount that you have to pay out of pocket before the insurance kicks in and starts paying for things. A low deductible is preferable but also usually coincides with higher premium payments. In addition to the premium and copay, you may have to pay co-insurance once the insurance coverage kicks in. This is the percentage of the costs that you have to pay once the bill is submitted. Most plans lay out the percentage of co-insurance, such as 80/20 or 60/40 plans. Finally, most plans have an out-of-pocket maximum, which is the most you have to pay out of pocket in a given year – anything over this the insurance will fully cover.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, H.R. solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.