With the increase in Medicare costs, it is important that you are well-prepared and understand how to manage your finances. Do not have false hopes of just having an insurance cover and all your needs would be taken care of. The purpose of health insurance is to protect your finances against catastrophes. Health insurance is not designed specifically for every medical expense.
It is your responsibility to calculate carefully how much you can spend on medical bills and discover which type of insurance coverage would best meet your health care needs. Before entering a contract with any company, it is important that you understand the benefits and limitations of getting medical insurance. Here are some advantages and disadvantages of having health coverage. (1)
Disadvantages of Getting Medical Insurance
Before you sign up for medical insurance, it is important to know all the disadvantages of having one.
Health insurance coverage requires that you pay an annual premium. This means your expenditure will go on increasing every year as premiums increase with inflation and healthcare costs also rise each year. You need to find out if your company offers a cost of living increase on your policy premiums.
High Deductibles Before Coverage
If you are a person who is relatively healthier and does not get sick often, then health insurance may not be a necessity. If you have to pay the deductible each time you file for reimbursement or claim for medical treatment, it will likely deplete most of your savings.
Long Wait Before Claim is Processed
When filing a health insurance claim, be prepared to wait for a long time before the application gets processed or any payment is made. Even if your claim is already approved, it could take weeks or even months before the payment reaches your hands.
Predetermined Exclusions And Limitations
There are certain procedures that you can’t get covered with your health insurance, and those things are considered pre-existing conditions. This is why it’s best to compare Medicare supplement plans online beforehand. You have to know what kind of exclusions and limitations there are in every policy so that you will not get surprised when you are denied medical reimbursement.
Reducing Quality Of Life
It is important to know what procedures, medications, or diagnostic tests will be covered before you purchase a health insurance policy. This way, you will avoid treatments that do not offer the same quality of life that other alternative treatments or medications can give. You will also save yourself from the hassle of re-submitting claims and delays in processing your reimbursement.
Benefits Of Having Medical Insurance
Despite the disadvantages, there are a lot of advantages to having medical insurance. The following are the many benefits of medical insurance that you should consider:
Reduced Health Costs
Health insurance reduces your overall health care costs. You will only need to pay a small copay for every visit or medical procedure, which means you can have regular treatment without going into debt easily. Moreover, if you are unable to pay the entire bill for a prolonged illness or hospitalization, you can rest assured that your medical insurance will cover most of it.
Payout For Major Surgery
Major health problems often call for major medical treatment, which is also expensive. If you have a serious accident or get diagnosed with a critical illness such as cancer, heart disease, and other major medical problems, your medical insurance will pay for the cost of treatment. This is one advantage of having a health cover that most people, especially those with critical illnesses, prefer.
Access To Specialty Doctors And Hospitals
Many companies which offer health insurance often have an affiliation to a network of doctors and hospitals in your area. While this does not guarantee that you can get treated at these hospitals, it does provide you with the opportunity to access them. If your insurance company has a network of specialized clinics or doctors, you will also have first priority when making an appointment with the doctor right after they receive your referral letter.
Longer Life Expectancy
When you are diagnosed with a critical ailment, it is important that you can get the right treatment to extend your life. This is often more affordable when you have health insurance or individual critical illness insurance, as you will only be required to pay for the co-pay on every medical procedure done.
The benefits of having medical insurance are well worth the disadvantages. If you are not currently covered by medical insurance, it is time to consider what steps you can take today to protect your health and financial future. Doing some research about the various types of coverage available may help answer any specific questions or concerns that arise, as well as provide a better understanding of how much coverage will cost in comparison with other plans.