Traditional health insurance plan- brief overview

Author: markus hudson

Health insurance companies' offer varieties of insurance products to people with different interest rates, premiums and claims and one of the health insurance plans is traditional health insurance. This insurance plan has its own operating system i.e. it works on copayments and coinsurance and people have to pay premiums per month in this insurance plan. Apart from monthly premiums, one also has to pay copayment for every visit to doctor, hospitals or emergency room. Co pay is fixed for every visit but it generally increases with the visit to any specialist or emergency room. But if go through some special tests or procedures then you need to pay coinsurance.

But coinsurance is not totally paid by you; it is partly paid by you and partly by insurers, say, 20% by you and 80% by insurer but that to the extent of some limit. Some companies set some maximum limit of coinsurance and when you reach that limit your coinsurance will not be anymore applicable. After that you have to co-pay for all your doctor's and hospital's bills as per signed in the contract with insurance company.
So it is important to have knowledge about the cost of the procedure if you undergo any surgery, then you need to co-pay, deductibles and also the remaining coinsurance balance. If you are facing any kind of problems in estimating the approx or actual procedure cost, then you can contact your insurer or representative at the company before starting with the insurance procedure. Also make sure that you will get approval of more and more tests or surgeries i.e. coinsurance before signing the contract.

Traditional health insurance v/s high deductible plan
Health insurances are basically for our help in healthcare problems and their main goal is to support us financially in unpredicted situations. But the decision of buying health insurance is in our hand only so we must understand terms and conditions of every health policy before purchasing so that it will benefit us in long run. Some people confuse themselves in deciding whether to buy traditional health insurance or high deductible plan.

Traditional health insurance works on its system of copayment and coinsurance and this plan helps from the very first day in paying for doctor's, hospital's visits, prescription etc but only to some extent. And no additional visit will be included in this plan. On other hand, high deductible plan pays for all your visits but for before the insurance starts paying; you have to meet high deductibles. Insurance companies have set some limit of paying deductibles and once you pay expected deductible, insurance will give you 100% coverage without charging any additional cost.
It is totally your decision to go with which insurance policy. If you are looking best policy with lower premiums then high deductible plan is the right option. Many insurance companies are also offering option of insurance policy with both traditional and high deductible plans i.e. this insurance plan will offer both copayment and coinsurance, paying for doctor's visits, lab tests, higher deductibles and some percentage of coinsurance also. It is advisable to choose the plan with which you can use maximum amount and also which meet all your needs. You can get health insurance quotes online also.

Posted in: Insurance