Important Health Insurance Terms

The following are some great health insurance terms that you should be learning before you go get the health insurance you deserve. These will help you better manage the process and make sure that it turns out in your favor. If you know all these already then you can just consider this a little refresher. Once again, another step in the right direction with cheap health insurance rates.

Make Sure You Learn These Words!

HMO - This option is a prepaid medical plan. The letters HMO stand for Health Maintenance Organization. It is important that you know that if you sign up for this plan that you are agreeing to use the specific providers that your insurance will cover. Take a look at the list of providers and make sure you do not have objections.

PPO - This is also referred to as Preferred Provider Organization. This is like an HMO because they have a preferred list of providers that they like to deal with. If you use their providers then you will get discounted rates on the service they provide. If you choose to use a provider outside of the network then you will be reimbursed for some of your charges.

Group insurance - This tends to show up more at places of employment. They may be offering you the option of group health care. There is one master policy that an employer will take on. This will have benefits for all of the employees. You might want to take a look to see if you even qualify for this.

Co-payment - When you have to split the charges of medical care with your insurance company, this is called a co-payment. You will be charged a flat fee every time you have a test done, go to the doctor's, or pick up a prescription. The insurance company will then pay for the rest of the costs.

Supplemental medical insurance - If you ever hear someone make reference to "Part B" then you know that they are referring to supplemental medical insurance. This is not included in the main health care package that you would have. This is when you get government assistance to help pay with it.

Make the Wisest Decision

Now that you know some of the terms you will come across, use them to make the best decision possible. If you want a PPO, then do not settle for an HMO. Remember, your health and your family's health is too important to mess around with. Just make sure you get the coverage that you desire. Check out our common mistakes page for more information.