It’s extremely important that you have health insurance, otherwise, your savings could be wiped clean after a single medical procedure. That said, it’s not exactly easy to understand how medical insurance works. Here are some basics that you need to know, so you can ensure your plan will pay for your medical bills when the time comes.
What Is Health Insurance?
Health insurance helps pay for your healthcare expenses. Your plan could cover just about anything from hospitalization due to a serious illness to preventive services – you’ll know what exactly your plan covers by checking the schedule of benefits. In turn, for this coverage, you will need to pay a monthly bill called the premium.
How Do You Use the Policy?
Each health insurance company has varied rules for using their healthcare benefits. Checking your plan’s limitations and benefits at the time of buying it will help. Some plans require you to receive medical care from certain hospitals and doctors only, so if you are already visiting a few healthcare providers, it makes sense to check whether they are part of this network.
Typically, to use your health insurance benefits, you will need to provide the doctor or hospital you visit your insurance details. The healthcare provider will then bill your insurer for all the qualifying services that you get charged for.
What Is an Insurance Card?
Your insurance card essentially proves that you have medical insurance from a specific health insurance company. It contains information that the hospital or doctor will use in order to get paid by your insurer. Doctors usually make a copy of your insurance card the first time you visit them. The card is also quite handy if you have any questions about your health insurance benefits. The card will usually have a phone number mentioned at the back, which you can contact for information. It may also mention the basic details about your medical insurance plan.
How Much Do You Have to Pay for Health Insurance?
When you have a health insurance plan, there are typically two types of costs you will need to pay for – a monthly premium and the cost-sharing out-of-pocket expenses. While the monthly premium may be a fixed sum of money, the out-of-pocket amount will vary based on the type of service you get and how much your bill amount comes up to.
