Health insurance is basically an insurance which covers a piece or the entire extent of an individual’s risk in terms of incurring personal medical expenses, sharing the risk amongst a number of other persons. This insurance ensures that if a particular health problem occurs, an individual will not be left with large financial losses as a result. It therefore aims at providing the best possible health care services to its customers. Since the creation of this insurance system, several different types of health insurance policies have come into existence. Some of them are:
Health reimbursement plan offers health insurance covers that reimburse you for any expenses that you have incurred in treating your own health problems. The cost of these medical procedures and the treatment involved may be quite high. However, a health reimbursement plan offers an opportunity for you to recover those expenses out-of-pocket. This plan also allows you to make claims for any expenses incurred as well as those expenses that you have not been able to reimburse from your own funds.
Indemnity plan simply means “all risks”. This plan offers tax benefits to the policy holder in case he or she should incur any health care expenses. In return, the insurance company pays a fixed amount of tax to the insured. This can either be paid as a single premium monthly or can be paid as a group premium based on the average annual premium among all the members in the group. The cost of premiums for an indemnity plan generally depends on your age, health status, gender, occupation and other factors.
Managed care mediclaim plan offers comprehensive coverage at affordable rates. This is mainly available to those who have undergone any kind of serious health complications in the past. The coverage offered by this insurance policy also covers the costs of treating any existing or new medical conditions. However, this plan requires you to pay a portion of your deductible and coinsurance as well as co-payments towards any healthcare services. However, this coverage may not cover unexpected mishaps.
Another type of health insurance plans is managed care mediclaim plan. The basic difference between this type of plan and indemnity plan is that the former pays your claims against any unforeseen medical circumstances. This type of coverage usually requires you to pay a portion of your deductible as well as coinsurance. Though most of the managed care plans also offer reimbursement benefits in case the treatment you have availed costs more than the amount you had paid from your own pocket. This type of health insurance company also reimburses you for expenses incurred due to illnesses caused by health-care services you had taken for other persons, if the latter had been your family or an individual you had contracted out of the blue.
One more kind of health cover is the super top-up policy. This insurance product can be purchased only once you are covered by a health cover and the same shall remain valid for a period stipulated in the product terms. If you think that your current health cover is expiring, it is preferable to buy a super top-up policy instead of scrapping it. This would allow you to purchase a higher amount of cover and still be covered for a longer period of time. Though the higher sum insured will cost more upfront but the insurance company shall refund you the sum insured in case of an accident or sickness in the future.
You can avail of hospitalization benefits under a PPO or preferred provider organization health insurance policy. Under such a scheme, your health insurance company or a special organization set up to provide health care to needy patients visits a particular hospital once in a while. If the hospitalization is deemed necessary, then you are compensated for the expenses that you would have been liable to incur. If you had gone for a regular health insurance policy, then you would have been covered for expenses such as doctor’s fees, lab fees, prescription drugs, X-ray charges, and other similar procedures. Such services are usually offered free of charge by hospitals that are registered with the insurer. However, some hospitals may have annual membership fees.
If you have an existing medical condition and wish to acquire additional health plans, you may consider buying a specialty plan. Specialty health plans are basically intended for individuals who require specific treatments that regular insurance policies do not cover. For instance, a specialty insurance policy for nurses may not offer coverage for laser hair removal, as this treatment is not common among nurses.