Things You Should Know Before You Purchase a Policy
There are two main ways that people purchase a health insurance policy. Coverage can be purchased through either a group insurance plan or individual insurance plan.
Group Insurance
Most people get their health insurance policy through group plans because their jobs provide insurance through work. Group policies are the least expensive and the employer usually covers part or all of the costs.
When purchasing group insurance sometimes you get a choice between fee-for-service, HMO (health maintenance organization) or a PPO (preferred provider organization. Other companies do not give you a choice.
Fee-for-service is the most traditional kind of policy. The policy only covers part of your bills and you pay a monthly fee after the services.
HMOs also involve a monthly fee but it is prepaid and you may pay a co-pay for a visit to the doctor. You have a limited number of doctors to choose from.
PPOs combine the two policies mentioned above. You are allowed to receive care from a limited number of doctors but only part of your fees are covered like the fee-for-service plan. You do not have to fill out paperwork and only need to present a card. You can still receive partial coverage if you go to a doctor not covered in your plan.
Individual Insurance
It is for people who are self-employed, are not offered insurance by their employer, or if the insurance given by the employer is too limited. You can purchase the same kind of policies under the group insurance but it is important to shop carefully because each companies prices and coverage are different.
Make sure the policy protects you from large medical bills
Check when the policy begins
Check for a "free look" which is a period that lets you receive a refund if you are not pleased with you policy when looking it over
Make sure the policy covers all diseases