Private health insurance. Why is it necessary?
The healthcare system in the USA is not so simple as one can imagine. At the same time, it often extremely expensive as the policy doesn’t often cover all the medical expenses. It works only for permanent residents of the USA and for those who have a green card. Due to this fact, private health insurance is so widespread in the USA.
Key aspects of the policy
This type of policy differs greatly in pricing and coverage. It means that any person can find exactly what he or she needs. There are several ways of how to get private health insurance in the USA. These ways are:
- Employment-based coverage;
- Getting it via the Health Insurance Marketplace;
- Getting it through an insurance company.
Commonly, the greatest part of the population is insured by this or that kind of policy. It is not often enough to cover all the expenses. In this case, people prefer to get an extra policy to get suitable coverage for them. It is also important to mention the type of employment. If you are self-employed, you can get private health insurance on the market or through the company.
While choosing a suitable insurance policy you can base on the following aspects:
- Insurance policies corresponding to the government standards;
- Short-term plans.
If you choose the government standard, you can choose several approaches. The most widespread is known as the Preferred Provider Organizations, Point of Service Plan, Health Maintenance Organizations, Exclusive Provider Organization. All these types have their advantages and disadvantages. There are lots of insurance companies on the market that provide private health insurance.
The majority of companies has different types of plans. They correspond with the names of metals. It usually includes a bronze status, a silver status, a gold one, and a platinum one. Due to these types, there is a great difference between what you pay personally and what the insurer pays.
What to choose?
If you don’t need permanent care in the hospital or special medical prescriptions, it is reasonable to get a bronze type. This kind of private health insurance protects a person from a serious illness. At the same time, most of the checkups are not included in the policy.
Silver status is recommended for those who have extra savings. The main difference is that this type requires more payments in comparison with a bronze status. Though, the type of coverage is almost the same. The main difference is the price.
The last two positions are for those who need a lot of care. Monthly payments are rather high, but the coverage is incomparable bigger than in bronze or silver status. It includes all the necessary checkups and expenses.
Most of the policies of private health insurance have extra bonuses. The most widespread are dental and vision care.
One key aspect that can’t be remained unnoticed is the systems of fines. In the USA, the government worked out fines for people who don’t buy any medical coverages. Though recent changes are aimed to reduce this dependency.
Is it necessary to have private health insurance?
There are two main aspects here. The first is the Federal policy. One must be fined for a medical insurance absence. Another important fact is healthcare peculiarity in the USA. It is often cheaper to buy an extra policy than to pay all the expenses without it. The price of medical procedures is rather high, sometimes it can reach the sum of $50,000. It is quite reasonable to pay about $1000 to get total medical coverage. It is especially important when it deals with dental and vision care. It is not always included in public health insurance.