Health Insurance FAQs

• Why Do I Need Health Insurance?
• Where Do People Get Health Insurance Coverage?
• What types of health plans are available to me?
• What is a PPO?
• What is an HMO?
• What is the best health plan for me?
• I am planning on living abroad for several months. Do I need special health insurance?

Answers:

• Q: Why Do I Need Health Insurance?
  A: Health care costs are forever on the increase. Health insurance offers you essential protection in the form of financial benefits if you or any of your family members have an accident or fall sick. Health insurance pays for medical bills, costs of hospitalization, prescription medicines, surgeries, ambulance services, assisted living, and various others. Compensation is substantial although it may not offer total coverage.

• Q: Where Do People Get Health Insurance Coverage?
  A: Available health insurance could be through group health plans or individual insurance. Employers offer group health plans for their employees. These plans offer health coverage for a variety of ailments at subsidized rates. Individual health insurance is purchase of health insurance from any private health insurance provider. Different insurance companies offer different plans with many variations in coverage and benefits.

• Q: What types of health plans are available to me?
  A: Available health care plans either could be indemnity plans or managed care plans. Indemnity health care plans offer a wide choice of doctors, specialists, and hospitals. These plans reimburse your costs on submission of medical bills. Managed care plans have tie-ups with specific doctors, hospitals, and health care providers. You receive medical services at these places at highly subsidized costs.

• Q: What is a PPO?
  A: PPO is Preferred Provider Organization. You pay co-payments for every visit to the doctor or hospital and are subject to an annual deductible. PPO members can use medical services through doctors and hospitals within PPO network. You can also visit doctors or hospitals outside the network without any referral. However, you bear major part of medical fees and expenses if you consult doctors outside PPO network.

• Q: What is an HMO?
  A: HMO is Health Maintenance Organization. HMO members select primary physician from list of doctors within HMO network. Such primary physician attends to your medical requirements and provides referral for specialists if need be. Most HMO networks do not charge co-payments. You pay nominal charges every month. You are not subject to any deductible too. You can avail emergency care from doctors outside HMO network.

• Q: What is the best health plan for me?
  A: There is no single health plan as the best plan for you. It all depends on health care requirements of you and your family. No health care plan offers total coverage of all medical expenses. You have to choose plans according to the amount of affordable deductibles, proximity to health care centers, and need for specialist care for you or any of your family members.