Is there health insurance that doesn't cost much? When you look at how hospital costs and doctor fees are going up, it doesn't seem likely. The job of insurance companies is to write up the medical risk for insurance. Once the insured person is accepted into the plan, the insurance company makes the policy and sends it to the insured person. The policyholders then get the policy declaration pages, which list all of the features and benefits of the policy.
What do these advantages and features look like? What are the...
Is there health insurance that doesn't cost much? When you look at how hospital costs and doctor fees are going up, it doesn't seem likely. The job of insurance companies is to write up the medical risk for insurance. Once the insured person is accepted into the plan, the insurance company makes the policy and sends it to the insured person. The policyholders then get the policy declaration pages, which list all of the features and benefits of the policy.
What do these advantages and features look like? What do they do after a stay in the hospital? When you start getting answers to these questions, you'll start to see how the total premium is made up. After a hospital stay, when you get your first benefit statement, you will start to understand how the deductible and coinsurance work.
A simple look at the claims
The total cost of staying in the hospital as an inpatient for 4 days, including the cost of doctor visits, is $4000.
- Your policy has a $500 deductible, an 80/20 coinsurance clause, and a maximum out-of-pocket cost of $2,000.
The first $500 of your stay must be paid, leaving a balance of $3500.
- You'll pay 20% of that, or $700, and the insurance company will pay the other 80%, or $2800.
When your 20 percent reaches $2,000, the insurance company pays 100 percent of the remaining costs, up to a million dollars (or 2 million etc).
The way people are buying health insurance shows that they are buying plans with higher deductibles. The premium goes down a lot when you have a deductible. Some plans have deductibles that are as high as $5,000. This is called self-insurance because, for the amount of the deductible, it's basically what you're doing.
People are also starting to use health savings accounts a lot more. You can get a tax break on these savings accounts. They are like IRAs for health care. For more information, talk to your tax advisor or accountant.
Please see our recommended source for insurance quotes. We did the research for you so you don't have to.
