Economy Medical Insurance

Medical insurance plans provide cover to policyholders in terms of reimbursing their medical expenses if they fall seriously ill or meet with an accident. While there are several plans available in the market to cater to the varied needs of consumers, economy medical insurance is the most sought after.

Economy Medical Insurance: Basic Information

While buying economy medical insurance, consider the following:

• Coverage under insurance plans is provided only for pre-specified medical expenses. Read the plan handbook to ascertain which medical treatments are covered before buying a policy.
  
• The term 'managed care' is used by insurers to control costs. If your insurance policy falls under “managed care,” always seek approval from the insurance provider before going to a hospital to ensure that your hospital bills are reimbursed.
  
• The insured has to typically pay a specific sum (known as deductible) on an annual basis to the insurance company before it starts paying.
  
• The insured may need to share a part of the medical bill with the insurer. This is known as coinsurance payment.
  
• According to the 'coordination of benefits' clause, there is a limit to the amount paid by an insurance company if a couple files for a claim for the same medical expense under two different group insurance plans.
  
• Choose the insurer who offers the maximum cover for the same price.
  

Things to Consider When Buying Economy Medical Insurance

The first step towards buying an economy medical insurance is the identification of personal insurance needs.

• While seeking cheap medical insurance, prioritize the risks faced by you.
  
• A low-cost medical insurer may not provide cover for very high risks and might deny claims submitted for expensive medical treatments. Therefore, a potential insurance buyer must read the policy disclosure agreement carefully.
  
• Always ask the insurer or agent to explain the points in detail whenever you are in doubt.
  
• Research the track record of an insurance company to gauge its credibility and financial soundness.
  
• Look for group insurance and insurance provided by employers to lower your medical premium. Group insurance policies are cheap and offer greater coverage. Moreover, you may not be required to undergo medical screening to qualify for the policy.
  

  Economy Health Insurance

  Although most people are provided health insurance through their employers, there is no guarantee that everyone has adequate health cover. According to the US Census Bureau, nearly 46 million Americans, or 18% of the population under the age of 65, were without health insurance in 2007.
  
  The reasons for such a high number of uninsured people are:
  
• Inability to afford their portion of the insurance premium. Health insurance premiums have risen by 119% for employers between 1999 and 2008. Employee spending on health insurance coverage has accordingly surged 117%.
  
• Small firms hesitate to offer the health cover due to such a rapid rise in premiums. While the average increase in yearly inflation has been 2.5%, health insurance premiums have escalated by 12% on an average for small firms.
  

Census studies also indicate that about 22,000 excess deaths occur annually among uninsured adults aged 25 to 64. This mortality rate is significantly more than the deaths from diabetes (17,500) within the same age group. The best way to avoid being part of the uninsured, high-risk group is to get an economy health insurance policy.

Economy Health Insurance: Things to Consider

Economy health insurance plans, or the least expensive health plans, usually offer the least coverage. Thus, while buying economical health insurance, balance the coverage with what you can afford comfortably. While buying a health insurance policy, pay special attention to what is included and excluded in the plan. For example, you can decide to exclude maternity care from your policy if you are not planning for children in the near term and save on costs.

Every policy document has the following sections at the back:

• Outline of Coverage: This section shows what will be paid for by your plan. It also indicates the extent of medical bills you will need to pay for.
  
• Exclusions and Limitations: There are 2 key things to consider:
  
  • Deductible waived: This indicates that you do not have to pay towards your plan before the start of coverage. Several economical health insurance plans waive the deductible for routine care and basic lab tests.
    
  • Does Not Apply to Out-Of-Pocket Maximum: This means that the payments you make for certain services are not included in your out-of-pocket maximum. So even if you have spent your annual out-of-pocket maximum, you may still find yourself paying for certain services. Check this section carefully for the services that have "Do Not Apply" mentioned with them.
    
• Limitations and Exclusions: This section is tough to understand and is always specified in fine print. However, it is important to understand any exclusions to the plan before you buy the policy.
  

Remember to check out the quotes of several insurance providers before you finalize your economy health insurance policy.