What is health insurance?
Why do you need it?
Let’s face it–health insurance is a necessity in today’s world. The costs of medical care and treatment have soared to new heights in recent years and are expected to rise even further in the years to come. Think for a moment about the enormous medical costs you would incur if you suffered a major injury tomorrow or were suddenly stricken with a life-threatening illness. Uninsured people live with such risk every day of their lives; health insurance can shield you from that risk. Even if you’re healthy today and have never had any major problems in the past, you simply can’t predict the future.
In addition to medical emergencies, routine conditions requiring visits to a physician happen all the time (e.g., pregnancy, viruses that seem to hang on forever, moles that don’t look quite right). This is especially true if you have children. Ear infections, rashes, and high fevers are commonplace with infants and children; numerous trips to the doctor can be pretty expensive without health insurance.
What do you need to know?
You should know where to get health insurance, and understand the various types of private health insurance that are available. There are some important differences between indemnity plans, HMOs, PPOs, and HSA plans.
You should understand your own health insurance policy, and become familiar with common health insurance provisions, including limitations, exclusions, and riders. It’s important to know what your policy covers, and what you’ll have to pay for out of your own pocket.