There are many types of health care insurance, of which short- term is most common. Short-term health care is basic comprehensive health care coverage for doctor visits, emergency room visits, hospital stays, surgery and diagnostic procedures. These plans may be active for 30 days to 360 days; then they will need to be renewed. Premiums can be paid monthly or at once for the entire term selected. You will be required to pay a deductible amount for the term period, plus share the cost of each service received; the carrier pays the balance.
The type of policy you choose should be based on your health care needs. If you have no major health conditions and your health care consists primarily of well care visits to your family doctor, I would choose a high deductible plan. High deductible plans offer lower premiums, thus lower monthly payments. Instead you would have a slightly larger bill at the doctors’ office than someone with a low deductible. Example: You have a $10,000 deductible for yourself and spouse, but the two of you may visit the doctor twice each throughout the year, which amounts to $122 x 4= $488. Add on an annual physical for each of you at $500 each. The total amount of your healthcare cost is $1, 488- Not even close to that $10,000 deductible limit yet are you? You didn’t need it! Meanwhile you’ve been paying the lowest monthly premium available. Conversely, if either of you have to go into the hospital, the bill could easily be upwards of $50,000. You would pay $8, 512, the balance of your deductible; then your insurance pays the remainder, according to whatever split you have chosen.
However, if you have chronic health issues: diabetes, heart disease, kidney disease, etc., chances are that your healthcare requirements are much greater. There will be many trips to your primary doctor, specialists, diagnostics performed regularly and perhaps even a hospitalization. For this individual a low deductible plan would be best, because it will allow your coverage to begin sooner. In turn, you will pay a higher monthly premium. For instance your deductible is $2,500 annually. Once you pay that then you are only responsible for the shared cost of the service received or “coinsurance.” Given the complexity of your healthcare, it probably will not take long to pay your deductible; then your insurance begins to cover you.