With medical costs on the rise, the need for health insurance is now a financial reality for many people.
Health insurance is the primary means by which most consumers pay for medical and hospital expenses. There are two types of health insurance: public (Medicare and Medicaid) and private (private health insurance). There are significant differences between a health managed organization (HMO) plan and a preferred provider organization (PPO) plan in the category of private health insurance. There will be benefits and limitations depending on the type of private health insurance you choose. While most advisors will advise you to carry some form of private coverage, it does have some drawbacks that should be considered before purchasing a policy.
If you are looking for a trusted advisor to go over your options, you can schedule an appointment here.
Here is a list of the benefits and drawbacks of private health insurance that you should be aware of to make the best decision for you.
Advantages of Private Health Insurance
Of course, the most obvious benefit is that health insurance can cover some of your medical expenses. This type of insurance may pay for doctor’s visits, emergency room visits, and specialist treatments (in part or in full). Large hospital bills associated with surgery or other major treatments may also be covered by health insurance, depending on your specific policy.
A PPO health insurance plan may also allow you to choose your doctor, though you may pay more if he or she is not in the network maintained by your health insurance carrier.
Private coverage also typically provides more options than public plans such as Medicare. This may allow you to select the options that you are most likely to require while excluding those that you are unlikely to require. Shorter wait times, more individualized attention, and more sophisticated facilities may be associated with private health insurance. Public facilities can be overcrowded at times and, in many cases, provide a lower level of care.
Disadvantages of Private Health Insurance
The most significant disadvantage of private health insurance, as you might expect, is the cost. This is especially true if you are in poor health and lack access to any type of group coverage. Individual policies can cost hundreds of dollars per month, and family coverage can be even more expensive. Even the most comprehensive policies have deductibles and copays that must be met before coverage begins.
The majority of health insurance policies do not cover all diseases and disorders. When it comes to paying for some medical services, those who require care that falls within one of the gaps in these policies are on their own. Furthermore, healthcare costs have risen considerably quicker than the overall rate of inflation, and this trend shows no signs of decreasing.
These are just some of the advantages and disadvantages of private health insurance in the marketplace today. For more information on types of health insurance, contact a licensed advisor that can guide you through this confusing time. You can set-up an appointment with our team here.