Health Insurance

One out of six Americans has no health insurance; that makes up approximately 40 million people. That is a startling figure, considering how much money medical bills can end up costing. Why the reluctance to purchase something really important like health insurance? It could have to do with the complexity of the industry, and of course, the cost.

Why So Complex?

The process of signing up isn't necessarily so complex; rather some confusion may lie in the various types of health insurance plans available. First, you have the traditional fee-for-service health insurance. This form of insurance works similarly to automobile insurance; you simply pay an agreeable deductible and the health insurance company would pay the rest. Fee for service also allows for much freedom in choosing your health care providers. Usually it's the insured individual's choice as to which doctor they prefer and the restrictions are generally few. Disadvantages are, quite notoriously, the high price of premiums.

Then there is managed care health insurance, which strives to make prices affordable to patients. These include preferred provider organizations, health maintenance organizations. Prices are lower but freedom to choose doctors is more restricted. PPO coverage provides a network of providers that have negotiated rates with the insurer. You can choose any PPO within the network and make a small co-payment. However, if you venture outside the network, the insurance provider will only pay a small portion of the total bill. HMOs are the cheapest form of health insurance and also require you to visit doctors within the network with a small co-payment. However, if you go outside the network, the company will most likely not pay any of the bill.

Cheap Health Insurance?

Not every health insurance plan is expensive, though many are. There are affordable plans out there. The secret to finding affordable health insurance is to search diligently. It's now easier than ever before, thanks to online shopping. Many insurance companies will provide you with a price quote and plan comparison to help you decide what plan is best for you. Take your time and always put your health first.

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