| RecessionInfoCenter.com LLC. All rights reserved. |
 |  |  |  |  |  |
Recession Info Center
 | |  | |  |
Recession tips: Health insurance
Given the ongoing recession, it’s more important than ever to be a smart shopper and that
applies to buying health insurance as well. Here are some of the things you might want to
consider before looking for health insurance during recession:
1. There are two types of health insurance: Managed Care and Indemnity. Indemnity, or fee-
for-service, allows you to choose your doctor and hospital. As such, it provides you with
more flexibility and freedom, but you also usually pay more out of pocket for the health
care you get. Generally, indemnity insurance covers only illness or accidents and does not
cover preventive care.
Your options with Managed Care, on the other hand, are limited but you’ll pay less or
nothing for the services you get. With an HMO, for instance, deductibles are often smaller
and co-payments are low. But note that you can only choose among doctors and hospitals
that have contracts with your HMO, and they only provide the covered services. The
insurance will not pay the services that are not covered. In other words, managed-care
plans often limit your choice of providers and often require pre-approval for special
services.
There are also a number of hybrid plans nowadays the combined HMOs with some of the
features of indemnity coverage. "Open access" HMOs, for instance, allow you to see a
network specialist without a referral.
2. Pretty much with most kinds of health insurance, the insurance company pays all or
portion of the services performed so long as your coverage cover it. You usually have to
satisfy an annual deductible before insurance company pays the rest. Your co-payment is
usually around 10-30% of the bill.
3. When choosing the plan, select the one that provides coverage for the services you are
most likely to need (special consideration given the recession)
4. Shop around and compare the plans, even if it’s tiresome. There are numerous health
insurance coverages out there. Unfortunately, if you get coverage through your job, you
may not have many choices. But remember, group coverages provided by employers are
usually very good.
5. Even though health insurance is costly, not having usually does not make sense during
the ongoing recession. Remember that even a small accident can cost you a lot if you do
not have health insurance. So look for other places to save money during the recession.
6. Remember that the lowest premium is not necessarily the cheapest. Consider the
deductibles and co-payments. Also, remember to read the coverage closely to understand all
the loopholes and fine prints.
7. If you are working couple, pay close attention before making the decision. Given that
each plan has its own benefits and costs, you may want to consider forgoing on spouse’s
coverage or on the other side double coverage for both. Your choice depends on the details
of each plan.
The information here is only meant to provide a general understanding. In each case, you
should consult a qualified professional before making your decision.
Given the ongoing recession, it’s more important than ever to be a smart shopper and that
applies to buying health insurance as well. Here are some of the things you might want to
consider before looking for health insurance during recession:
1. There are two types of health insurance: Managed Care and Indemnity. Indemnity, or fee-
for-service, allows you to choose your doctor and hospital. As such, it provides you with
more flexibility and freedom, but you also usually pay more out of pocket for the health
care you get. Generally, indemnity insurance covers only illness or accidents and does not
cover preventive care.
Your options with Managed Care, on the other hand, are limited but you’ll pay less or
nothing for the services you get. With an HMO, for instance, deductibles are often smaller
and co-payments are low. But note that you can only choose among doctors and hospitals
that have contracts with your HMO, and they only provide the covered services. The
insurance will not pay the services that are not covered. In other words, managed-care
plans often limit your choice of providers and often require pre-approval for special
services.
There are also a number of hybrid plans nowadays the combined HMOs with some of the
features of indemnity coverage. "Open access" HMOs, for instance, allow you to see a
network specialist without a referral.
2. Pretty much with most kinds of health insurance, the insurance company pays all or
portion of the services performed so long as your coverage cover it. You usually have to
satisfy an annual deductible before insurance company pays the rest. Your co-payment is
usually around 10-30% of the bill.
3. When choosing the plan, select the one that provides coverage for the services you are
most likely to need (special consideration given the recession)
4. Shop around and compare the plans, even if it’s tiresome. There are numerous health
insurance coverages out there. Unfortunately, if you get coverage through your job, you
may not have many choices. But remember, group coverages provided by employers are
usually very good.
5. Even though health insurance is costly, not having usually does not make sense during
the ongoing recession. Remember that even a small accident can cost you a lot if you do
not have health insurance. So look for other places to save money during the recession.
6. Remember that the lowest premium is not necessarily the cheapest. Consider the
deductibles and co-payments. Also, remember to read the coverage closely to understand all
the loopholes and fine prints.
7. If you are working couple, pay close attention before making the decision. Given that
each plan has its own benefits and costs, you may want to consider forgoing on spouse’s
coverage or on the other side double coverage for both. Your choice depends on the details
of each plan.
The information here is only meant to provide a general understanding. In each case, you
should consult a qualified professional before making your decision.
Please visit our disclaimer page before using this site.