Health Insurance Guide: Everything You Need to Know in 2024

What is Health Insurance and Why Do You Need It?

Health insurance is a type of coverage that helps pay medical costs of the insurer. What makes health insurance so important? It protects people from experiencing high costs for healthcare services, ensures access to much-needed medical care, and even improves health outcomes through preventive services.

Types of Health Insurance Plans: Which One's Right for You?

HMO (Health Maintenance Organization): It requires a primary care physician choice and a referral to the specialist providers.
PPO (Preferred Provider Organization): More flexibility to choose the providers but its expense level may be higher in some cases.
EPO (Exclusive Provider Organization): This one is a combination of HMO and PPO but has only in-network coverage.
POS (Point of Service Plan): Both in-network and out-of-network providers can be seen with referrals

Choosing the Best Health Insurance Plan

Assess Your Needs: Reflect on how often you will visit doctors, if you have to take multiple prescriptions, or any surgery and treatments which is likely for your future health care
Compare Costs: Think of premium, deductible, co-pay, and out-of-pocket maximum
Check the Network: Are your favorite doctors and hospitals included in the network?
Read the Fine Print: Know what is covered in preventive care, maternity care, mental health service, etc.

What Are Premiums, Deductibles, and Out-of-Pocket Costs?

Premium: The monthly amount you pay to keep your health coverage active.
Deductible: The amount you pay before insurance will cover certain services.
Out-of-Pocket Maximum: What you would pay in a year, before insurance covers 100% of additional costs.

How Does Health Insurance Work?

Health insurance shares the cost of healthcare expense between you and your insurance company. Once you have paid your premium, if you actually require some care, first, possibly you must satisfy your deductible, and then your insurance pays a portion of the costs while you pay copays or coinsurance until you meet your out-of-pocket maximum.

How to Obtain Health Insurance?

Employer-Sponsored Plans: Most people get coverage through work. Talk to your HR department.
Marketplace Plans: During open enrollment, you can compare and purchase plans at your country's health insurance marketplace.
Medicare/Medicaid: If you are age 65 or older, disabled, or meet certain low-income requirements, you qualify for government-sponsored programs.

Don't Make These Blunders When You Buy Health Insurance

You're overlooking the network of doctors and hospitals.
Your strategy is obsessed with this monthly premium and blind to all of the other associated costs.
Without taking into account your specific healthcare needs, including any chronic conditions or prescriptions.
Missing important deadlines to enroll.