What You Should Know About Health Insurance Before Buying

You’ve decided that buying a car or a house is an exciting but stressful prospect. So, you’ve decided to go for a car insurance or home insurance plan. There is no doubt that having your own health insurance is a big investment. However, the right kind of insurance can help you avoid the high-costs of going to the doctor or paying out-of-pocket expenses when you need medical care. The right kind of insurance will help you avoid the hassles associated with getting the right kind of care and help you manage your health care expenses. However, where do you start? The car and home shopping processes are identical. You walk into the dealership with a set of expectations, a budget, and a timeline. The differences lie in the scope of the service being sold. The same holds true for health insurance. The scope of a plan varies from company to company and from agent to agent. This article is not a comprehensive guide to health insurance but rather a primer to help you understand the type of coverage you should seek and the role of the various types of insurers. This article covers the following:

What is Health Insurance?

Health insurance is coverage that helps pay for healthcare expenses (pregnancy, surgeries, cancer treatments, etc.) that you may incur. It can also help replace lost wages and disability benefits if you become sick or injured. There’s two types of health insurance: Medical coverage – Covers all medical expenses, including hospital stays, surgeries, and any specialty care your doctor recommends. Most people get this type of coverage. Coverage for prescriptions – Covers the cost of prescription medication you need to treat any medical conditions.

Types of Health Insurance

There are three broad categories of health insurance: Medical plans – Medical plans are the most common. They are the type of coverage most people get, as well. The most common medical plans are Medicare, Medigap, and teamed plans (e.g., High-Deductible Health Plan, Health Savings Account, etc.). Most people are automatically enrolled in Medicare. The coverage these plans provide is standardized and limited in scope. A Medigap policy and a High-Deductible Health Plan (HDHP) cover the gap and provide more coverage than Medicare. Medicare Advantage plans are alternatives to traditional Medicare. They cover a wider variety of healthcare expenses. However, they do not cover prescription drugs.

What’s Covered by Health Insurance?

Medical expenses are the most common type of coverage. However, some medical plans also cover prescriptions and emergency room visits. Getting a medical plan usually means you only get a certain amount of coverage, with a certain deductible and copayment amount. To understand what you’re getting for your money, it’s important to understand the different types of coverage that are available in medical plans: Hospital coverage – Covers most medical expenses incurred in a hospital, including in-patient services and some out-patient services.

What’s Not Covered?

Depending on the type of coverage you choose, you might not be covered for certain services, like: Surgical procedures – There are no federal laws that require health insurance to cover elective surgeries or cosmetic procedures. That being said, there are many health plans that do cover elective surgeries, including cosmetic procedures. Prescription drugs – Health insurance policies typically don’t cover prescription drugs. However, many Medicare plans do cover prescription drugs. Medicare Advantage policies – Medicare Advantage policies are private health insurance plans provided by Medicare. They cover prescription drugs and have other advantages, such as more flexibility in your healthcare.

Finding the Right Health Insurance Coverage

Before you start comparing health insurance plans, it’s important to understand what you’re looking for. Different people have different needs and expectations when it comes to health insurance. You should also keep in mind that no single health plan fits everyone’s needs perfectly. Health insurance is not like a car insurance plan that covers everything. You need to find the policy that fits your needs best. You can start by comparing the cost of coverage, the amount of coverage, and the types of expenses covered. To get a clearer idea of what you’re getting, it’s a good idea to speak to a few different insurance agents or brokers. Find a few with different types of insurance, such as medical, dental, and life insurance. Each of them should be able to help you understand the type of coverage you want and make a few recommendations. You should also speak to friends and family members who have health insurance. This will give you a better idea of what they like and dislike about their plan.


Health insurance is a significant investment. The right kind of coverage can save you a lot of money and time spent dealing with medical issues. Understanding the different types of coverage and the rules and regulations associated with them can help you make an informed decision. Choosing the right kind of coverage can make a significant difference in your financial well-being.

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