Why Health Insurance Is Important

​Emergencies occur at the most unexpected times. If you’re afraid of breaking the bank because of expensive medical bills, acquiring health insurance is a must.

The Basics of Health Insurance
Health insurance is a type of insurance that covers medical and surgical expenses. Just like other insurance policies, health insurance can also be customized to best suit one’s needs. 

Depending on the policy, holders can choose whether they pay and get reimbursed, or the agency pays on their behalf. 

How Much Is Health Insurance?
Varying factors affect the price of a health insurance policy. Here’s a list of some factors that affect health insurance premiums.

1. State and federal laws dictate coverage and insurance prices;
2. The insured’s income;
3. Where the insured lives;
4. Age;
5. Whether or not the insured smokes; and
6. The type of plan.

Types of Health Insurance
Generally, health insurance is categorized into two: private and public or government. Private health insurance policies are those provided by insurance agencies and are paid by policyholders. On the other hand, public or government health insurance is subsidized healthcare. 

Although these two are the commonly provided types, there are other types of health insurance people can choose from. The other types of health insurance depend on the plan administration and healthcare provider networks.

• Managed Care Plans
  This type of health insurance provides lower costs to policyholders because of the insurer’s healthcare provider networks. 
• Indemnity/Fee-for-service Plans
  Fee-for-service plans offer policyholders the option to choose their preferred place of treatment. Typically, the insurer shoulders at least 80% of the costs.
• Health Maintenance Organizations (HMOs)
  HMOs are organizations that provide medical attention directly to policyholders. Typically, HMOs provide the insured with a primary physician who will provide the necessary medical attention.
• Preferred Provider Organizations (PPOs)
  Similar to indemnity plans, PPOs allow policyholders to choose their preferred place of treatment. PPOs also have healthcare provider networks to allow for lower costs. 
• Point-of-service (POS) Plan
  POS plans are a combination of an HMO and PPO. Policyholders are given the option to choose from the following:

                  - Get all necessary medical care through a primary care physician;
                  - Receive medical attention within the insurer’s network; or
                  - Receive medical attention from a non-network healthcare provider.

Conclusion
Although health insurance isn’t required, being insured is beneficial. If you can’t immediately pay for medical expenses out of pocket, acquiring health insurance is a smart move. 

At Hayek Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (805) 496-8835 or Click Here to request a free quote.