How Does Health Insurance Work?

Health insurance is a complicated business in the United States – there’s no easy way of getting your head around it. However, due to the rising number of individuals looking to secure it, it’s something that needs to be explained in simpler terms. If you’re having trouble trying to find simple information about how health insurance works and what you need to do if you need to make a claim, consider the simple step by step guide below.

You Start by Paying a Monthly Premium

Health insurance is there to cover you should you become ill and need money for medication while out of work (or for similar circumstances). You start by paying a monthly fee to a specific insurance company for a package that suits your needs. There are usually multiple packages to choose from and each have their own benefits in terms of the monthly premium costs and what they’re willing to cover. You’ll be in a legal contract with the insurance company for however long the policy requires. Staff are usually the best medical billing coding trained staff, so they can help you with all the details in terms of your policy. This can vary greatly between the insurance companies, so always read the small print so you get what you’re after.

You Will Agree Co-Payments with the Company

Again, this can vary greatly depending on the insurance company you choose. If, for example, you need to visit the doctors, without any insurance it’s going to put you out of pocket considerably. However, with a health insurance plan by your side, you’re going to be covered. There is a small catch here though, and that’s co-payments. It is usually set out in your contract what you will need to pay in contribution to the insurance company. They might cover 80% of your doctors visit but then you’ll have to cover the other 20%. Insurance companies work in different ways and while many of them agree on certain percentages, many others will have a fixed fee.

A Few Benefits of Health Insurance

The obvious benefit of having health insurance is that you’ll not have to dig deep into your own pockets just to go for a standard check up with your local registered doctors. You’ll still have to make small payments in terms of co-payments as stated above but apart from that, you’re covered. It also means that you’re not going to go bankrupt from paying for small medical bills or serious operations. Ultimately, health insurance means you don’t have to damage your finances just so you can get the health cover you need to live a happy life.

How Do You Make a Health Insurance Claim?

Making a claim is relatively simple depending on the company you’re in contract with. Simply calling their office is a good start in letting them know what you need the cover for. You’ll need to get a note from the doctors/nurses to verify this and you’ll need to keep all receipts from medical/medication bills, otherwise, you could end up without the cover you’re paying a premium rate for.

The above is just some simple information in regard to health insurance in the US. It’s a little bit more complicated than just the above, but you get a general idea of how it works. Always check the policy in detail just so you know you’re going to get the cover you rightly deserve.