The unabated rise in health costs makes health insurance essential,
especially for emergency cases like major illnesses and accidents. Many
unwisely avoid insurance hoping to escape from such disasters.
Actually, it is the high premium, which drives most people away from
insurance. For them there is cheap health insurance.
How do I benefit?
Although
it offers limited benefits, for the cost conscious, they are good
alternatives offering adequate health cover at reasonable rates. Cheap
health insurance comes in a variety of plans and cover doctor’s,
medicine and hospitalization expenses. Eye care, dental and other
medical expenses are also covered. In most cases, preventive care is
not covered.
Where do I get cheap health insurance?
There
are many companies offering cheap insurance and choosing one can be
difficult for a layperson like you. You can take the help of the state
sponsored Medicaid program, the Internet and the local insurance
agencies. The insurance agent on the field is a good resource.
What kinds of plans are there?
For
the budget minded, the low risk indemnity plan is the ideal. You pay
coinsurance amounts and certain deductibles. These are flexible plans
which can be modified to suit your needs. They provide low quality
cover but are adequate for the cost conscious.
In this
category there are mainly two types of cheap health insurance plans.
These are The Health Maintenance Organizations or HMO and Preferred
Provider Organization or PPO.
HMO: Here you pay a monthly
premium to cover yourself and your family for doctors, surgery,
hospitalization, emergency, lab tests, x-rays and therapy expenses.
Your choice of doctors is limited to those having agreements with the
HMO.
PPO: This plan covers most expenses including preventive
care. For some services there may be a coinsurance and deductible. In
this plan, you can choose your own doctor but bear the major portion of
the expenses. The plan suits those who want to continue with their own
doctor even after joining PPO.