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experiences and viewpoint as my day unfolds

Archives for the day Friday, August 28th, 2009

health insuranceI just feel like sharing the information I gather about health insurance. The truth is, I am really looking for a strong insurance company. I fear that they will close or file bankruptcy even before I can make a claim. There are a lot of those companies that closed because of mismanagement and I don’t want to fall victim. Yet, I still consider getting one because of the many benefits it offers.

Basically, a health insurance policy provides protection against the risk of financial loss returning from the injured person’s sickness, accidental injury, or disability. It provides financial support during great time of distress to pay hospital bills, doctor’s fees, medical test, and any surgical procedure that may be needed.

Health insurance plans are generally indemnity plans. You can go to the doctor of your choice and submit a claim to your insurance company for reimbursement. Take note that you may only reimbursed for “covered” medical expenses, a list of which can be found in the benefits summary. The good news is that the vast majority of procedures will be covered under an indemnity plans.

Indemnity plans pay a sizable percentage of what they consider the unusual and customary charge for covered services in the area. The insurer generally pays 80 percent of the usual customary costs and pays the other 20 percent, which is known as the coinsurance. If the provider charges more than the usual and customary rates, you will have to pay both the coinsurance and the excess charges.