Medical Insurance can be provided by different entities, and there are 3 kinds of insurance plans that an individual can join in. Let me share what each has to offer based on my working experience in the industry.
The first and the simplest insurance plan is the Individual Plans. This means that there is just 1 person who pays for the insurance and he/she is the subscriber on the plan. For example, a working mom wants to apply for her own medical insurance and gets an individual plan, she pays for the premium (monthly fees) and she has the option as well to have her husband and kids to be dependents on the plan. While this plan may be expensive just like the cost of errors and omissions insurance depends on your industry. But as a client, it is your right to carefully choose the right insuance.
The subscriber may also choose what type of plan they could get. Most insurance companies offer different types of coverage and they differ in price as well. Most individual plans are quite expensive and have a low maximum benefit compared to the other kinds of plans.
The next kind if medical insurance plan is the group health insurance plans. These are usually acquired by companies for their employees. They are usually much cheaper (since they’re in bulk) compared to individual plans if you compute each member’s premium. These plans can be fully customizable in terms of benefits and coverage. For some, there could be higher benefits for managers and much higher benefits for top executives. It all depends on the company. The company can also set coverage limits such as pre-existing conditions. Some would not allow pre-existing conditions to be covered and some do.
In this case, the employees or the members of the group plan should be well-informed as to what they are covered for and what the limitations are. This is very important when it comes to any insurance plan (vehicle, medical, life, etc) and I see the limitations as the fine print of the contract so make sure you understand the contract clearly.
The last kind of medical insurance would be government-sponsored insurance plans. These plans are usually mandated and may be required by the government depending on the qualifications. Let’s take Medicare for example which is probably the largest US Government medical program. It is for those who are 65 years old and above or is disabled or has permanent renal failures. You also have Medicaid and Medigap.
It would really depend on the situation on which you would like to have. If you are employed and your company offers health insurance as a benefit along with your employment then that would be great. If you feel that you need medical insurance for yourself and your family, you can opt for individual plans. If you are qualified, you can also opt for government sponsored medical plans.
Always remember that you need to analyze first what you need. Would you need all that extra benefits for a very high premium? Or will it be better to have more specific benefits at a lower premium? Different insurance companies have different products to offer and promotions to deliver so it would be best to compare and decide on where you’ll benefit the most according to what you really need. Ask for feedback from other people or ask the insurance companies themselves.