Health insurance – Health is wealth; save and savor it!

Health insurance is the type of protective insurance in which the insurer pays the medical expenses of the person insured if the insured becomes unhealthy or is in need of medical assistance, due to causes or accidents covered in the policy. The main reason behind the importance of health insurances is that quality health care is very expensive and by having these insurances, if you happen to fall seriously ill, there is one less thing to worry about. That is because the health care insurance company will cover the costs.

This kind of insurance provides coverage for medication, visits to the doctor or ER, hospital admissions, costs for tests, examinations, prescription drugs and other medicinal needs.

Basically this insurance policy can be divided into two: Fee-of-service Insurance or Reimbursement (Indemnity insurance), and Managed Care Insurance Plans. And these insurance plans are available from both private insurance companies and government agencies.

Fee-of-service insurance is a traditional type of insurance that pays a portion of each health care service you seek, such as doctor's visits and hospital admissions, while you pay the remaining cost with a monthly premium fee. There are two kinds of fee-of-service coverage - basic and major medical.

Managed Care insurance plans help you control the costs, whereas the insurance companies sign an agreement with doctors and hospitals to provide health care services for their members. This type of insurance falls into 3 basic plans. First is the Health Maintenance Organizations plan that provides health care treatment on a prepaid basis, which means that HMO members pay a fixed monthly insurance fee and in return, they get a wide variety of medical services, from office visits to hospitalization and surgery. Second is the Point of Service plan, which is a type of insurance where you pay no deductible and usually only a small co-payment when you use a health care provider within your network. And finally there is the Preferred Provider Organizations insurance plan, which is a combination of a fee-of-service insurance plan and an HMO plan. When you visit the doctor, you pay by membership card like in the HMO plan.

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