Theoretically, insurance is easy to understand. Groups of people facing the same potential risk are gathered. They assess how much money they have to pay and how much they should split between group members. Think of it as collecting enough money on a rainy day. They all make a contract called a policy. So it starts to get harder. Once a lawyer intervenes, simple things are lost in complex languages. As if to hide exactly what insurance companies offer. Now, there are things you need to do when looking for affordable private health insurance.
A policy or plan is a contract between you and an insurance company. The price you pay for insurance coverage is called the premium. You need to read small letters to find out exactly how much you owe. That way, you can see which policies are the best value for money.
Every policy or plan is paid by the insurance company when you pay the 'immunity' principle, which is the medical fee. The coverage is determined by the company and depends on how you are responsible. All policies are not wrong. No matter what treatment you need, they pay for it.
The most expensive policy is fully exempt. The insurance company pays no matter what the bill is. This way, you can freely choose. If you use this policy, the insurance company pays all bills with the money back. Other policies limit your freedom in any way. Limited options will lower your claimed premiums.
The most common policy is called the Health Maintenance Organization. This will give you access to your doctor's and hospital's network. One doctor is appointed as the primary health care physician and this person acts as a gatekeeper. Your primary care physician must approve other people on your network. Recommendations can go anywhere in the network. Organizations that do not join the network will have to pay for it. The advantage of an HMO is that its co-payment requirements are reduced and the premium is generally lower because of the lower deductible.
Point of Service (POS) is a doctor who acts as a gatekeeper. You can choose freely if you report.
The Preferred Provider Organization (PPO) is an HMO with a nominated doctor who is not a gatekeeper. This gives you more freedom, but the premium is more expensive. Staying on a "preferred" network will generally reduce your costs. Once you get out of the network, the rate will rise. This may result in higher co-payments and deductions.
There are other policies and plans that you can use to prepare for disabilities. Whether you have an accident or not, you can claim that you can not work and you can claim long-term care costs. These policies can be costly, so you should always read the small print before you buy.