Health Insurance

A person’s health and wellness contribute to almost every aspect of their quality of life. However, even those who dedicated themselves to healthy lifestyles and prioritize personal safety may eventually be involved in accidents or develop illnesses and other conditions. In these situations, having access to essential medical services is necessary. With that in mind, it’s critical to understand how to secure and maintain the right health insurance. 

What Is Health Insurance? 
Health insurance is a vital financial tool that provides coverage for medical expenses and services. It acts as a safeguard against the often-exorbitant costs associated with healthcare. Health insurance plans are typically offered by private insurance companies or provided by the government in certain countries. The fundamental purpose of health insurance is to protect individuals and families from the financial burden that can arise from unexpected medical issues. 

How Does Health Insurance Work? 
Health insurance functions on the principle of risk pooling. Policyholders pay regular premiums to the insurance company, accumulating a pool of funds. When individuals require medical care, they can access services covered by their insurance plan. The insurance company then pays for a portion or all of the medical expenses, depending on the terms and conditions outlined in the policy. 

Common Types of Health Insurance 
Health insurance may come in many forms, and the capabilities and limitations of possible choices may vary significantly. To make the right choice, policyholders should assess their coverage needs and consider how the following common types of plans may fulfill them: 

• Health maintenance organization (HMO)—Within these arrangements, individuals select a primary care physician who manages their medical needs and provides referrals to specialists. HMOs can provide policyholders with savings on premiums and out-of-pocket costs, but provider networks may include fewer choices and out-of-network services are generally not covered.
• Preferred provider organization (PPO)—These policies can provide more flexible coverage and may be more likely to help insureds access out-of-network services, albeit usually at higher rates than those in-network. However, PPOs may often include higher premiums and deductibles, increasing overall costs for some policyholders.
• Point of service (POS)—These plans may be viewed as hybrids of HMOs and PPOs, requiring individuals to select a primary care physician. However, policyholders may have the option of seeking out-of-network care if they are willing to pay higher rates. So POS plans may provide an attractive balance between the cost savings of an HMO and the flexibility of a PPO.
• Exclusive provider organization (EPO)—Also combining elements of HMOs and PPOs, these policies generally do not require insureds to select a primary care physician or seek referrals for specialist care. However, in-network providers are typically required to receive financial assistance. These arrangements may be a suitable choice for policyholders wanting to limit their health insurance costs while having ample liberty over choosing their providers.  

Get the Right Coverage 
The Insurance Lab is well-equipped to help assess and address the health insurance needs of families and individuals in the Dunwoody and Atlanta areas. With over 30 years of experience representing many A-rated carriers, our dedicated agents have the knowledge and resources to ensure optimal access to essential medical services. Contact us today to begin.