3 Health Insurance Misunderstandings That Could Cost You
Health insurance is a critical aspect of your financial planning, but it's also extremely difficult to understand. Health-insurance policies extend for dozens, or even hundreds, of pages in some cases, and there's a lot of confusion about what various terms, phrases, and contract provisions really mean. Below, we'll look at several often-misunderstood aspects of health insurance that can cost you a lot of money if you don't grasp them correctly. By knowing more about your insurance, you can make the most of your health coverage and make smart choices about exactly which coverage options to pick.
Managed care organizations have done a lot to cut the cost of healthcare for patients, but they also impose restrictions on the medical professionals and services you can use. Some policies still allow you to see any doctor of your choosing, but most health-maintenance organizations and preferred-provider organizations offer additional savings if you use doctors and other professionals that are within the policy's covered network.
It's essential to look at exactly how your policy distinguishes between in-network and out-of-network services, because some policies have extremely draconian provisions in this regard. You can count on getting less coverage and having to pay more in out-of-pocket costs for out-of-network providers in nearly every situation, but some policies provide almost no coverage for providers who aren't in their networks, except in emergencies. Before you casually visit an out-of-network provider, it's worth contacting your health insurer to find out exactly what will and won't be covered.
Source: Fool.com
