Evaluating Health Care Insurance Options


Added on  2019-09-18

2 Pages940 Words338 Views
Part A:1.Health Care Insurance is a type of insurance coverage in which insured person is reimbursed for medical expenses paid by them. It will be reimbursed in case of accident, injury, surgery or illness. It is to be noted that insurer will not reimburse 100% of expenses paid by insurer. This will depend on type of insurance policy opted. The insurer should take following steps to evaluate and choose a good Health Care Insurance options:a.Research for plans available and feasibility of policy for the insurer: The insured should evaluate the plans available in the market by different insurance company. The plans are available in different range for each category of person. The insurer should evaluate the background of the insurer company also. It is very important that the insurer should a highlyrated organization, which has zero case of default payment.Now the insurer will encounter various plans while researching for the insurance policy. The most common type of insurance coverage available in the market are PPOs, EPOs, HMOs or POS plans. The type of insurance coverage the insurer choose will determine the out-of-pocket expenses and category of doctor, which one can visit.When comparing different policy, one should keep the medical needs of their family at the top most priority. Compare the amount of benefit one has received in the past. Although opting the best plan is impossible, still this helps one to take an informed decision.b.Compare the Out of Pocket expenses: It is important to evaluate how costs are shared between insurer and insured. Any insurance plan will provide the details of benefits and how much will be paid out of pocket for services. Normally, lower the premium, higher would be the out of pocket expenses.2.While considering a private health care insurance one should consider the Tax benefit of the policy opted by the policyholder. The government provides the tax benefit to each person, who opts for a private insurance policy. The policy shall opt the policy consider the tax deduction available to the person from taking insurance. Further, policyholder shall invest only in those schemes, which provides proper investment certificate through which a person can obtain tax benefit. Thus, the policyholder should opt the policy as per his requirement but he should consider the tax benefit available in addition to the policy.PART B:Financial planning requires a person to estimate their future requirement for expense or further investment. The most critical part in financial planning in estimating the expenses. For achieving a higherwealth tomorrow, the person needs to restrict his expenses today. Tax laws prevalent in the country affect financial decisions.
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