The costs of medical treatment are at an all-time high in the United States. This is one of the reasons why citizens are required to have medical insurance. If you don’t have appropriate medical insurance, your medical bill might reach up into the thousands. A number of government reforms were introduced in the past few years in order to make medical treatment more affordable and accessible to the people, though they are still very much in the early stages.
Looking for a new medical insurance policy can be difficult for people who don’t have a clue about how the premiums and the deductibles are calculated. Insurance agents use a series of complicated terms in order to confuse people and convince them to buy the policies they recommend. If you end up buying a policy without checking the terms and conditions, you will regret it later on. It always pays to know about the fundamentals of health insurance.
Most insurance companies offer medical insurance of two different types: group and individual coverage options. A group plan is beneficial for employers and workers’ unions. These plans are negotiated by the insurer and the employer/policyholder for a whole group of people. Group insurance policies are obviously more affordable than individual plans, because the provider ends up paying a considerable portion of the premium to the employee. Individual coverage options are different, since the insurer will discuss all relevant details of the policy with the individual and then create a custom plan. These are also known as single payer plans.
Factors that Determine the Premium
There are several different factors which determine the premium charged by the insurance company. An insurance company will obviously try to mitigate its risk as much as possible when selling a new policy. Your age plays a very important role. As you grow older, you become susceptible to more diseases and your immune system begins to weaken. The insurance premium is also affected by any existing medical conditions.
If you already have a debilitating disease, the insurance company might even request you go for a medical check-up in order to determine the severity of the situation. The insurance company might not even offer a policy if the problem is serious. Your current fitness levels will also play a role in determining the premium.
Compare Quotes from Different Insurers
Before buying any medical insurance policy, it’s always wise for you to request and compare quotes from several insurers. Be wary of larger insurance companies masquerading as small businesses. Go through the terms and conditions written on the document carefully when comparing different policies, so that you can highlight any contentious point.
Most insurance companies will be happy to answer any queries that you may have about their policies. You can also visit their websites in order to review the most recent figures about the number of claims that were rejected and approved.