Why do you need Health insurance? Health care costs are high, and getting higher. Health insurance protects you and your family in case you need medical care that can be very expensive.
Unlike other insurances, Health Insurance is one you will use and might use regularly. It is important to understand how your plan works, what it covers and costs you will be responsible for.
Terms to be familiar with:
Premium – monthly cost to have an insurance policy.
Co-Payment – a specified cost for a particular service (Doctor Visit)
Deductible – the cost of care you are responsible for before the insurance company pays.
Co-Insurance – the percent of shared expense between you and the insurance company after the deductible is met.
Out of Pocket Maximum – The limit of medical expenses you will pay in a calendar year for essential health benefits. The Deductible, Co-insurance and Co-payments all go towards the out of pocket maximum and once the maximum is reached the plan pays 100% of covered benefits.
Affordable Care Act
The Affordable Care Act was signed into law March 23, 2010. Changes in health coverage began in 2010 and continue to be implemented. Some of the changes that have occurred are:
Preventive Care covered at 100%
No annual or Lifetime limits
Dependents can stay on a Parents plan until age 26
Preexisting conditions cannot be excluded
You cannot be denied coverage or charged a higher premium due to preexisting conditions
Policy cancellations are not allowed except for intentional misrepresentation or non-payment of premium.
All Qualified Health Plans must have the 10 Essential Health Benefits