Medical Insurance Glossary - Common Terms You'll Need To Know

In order to get the right health insurance policy, you'll need to do your homework. No one can make that informed decision but you. But, there is lots of tricky terminology that you have to understand first.

Here are some of the most common terms you'll need to know in order to choose the right insurance plan.

Premiums and Deductibles - Your premium is how much you pay each month. If you are getting group insurance through your employer, this is how much they will take out of your paycheck for insurance. The deductible is what you pay when you go to the doctor, hospital or use your insurance to buy prescription drugs or supplies.

Coinsurance - This is what you have to pay after the deductible. The deductible will be a fixed amount after which you split the cost with your insurance company. Coinsurance is usually expressed as a percentage. For example, you might have a rate of 10%. That means that you pay 10% and the company gets the rest.

Copayment - You might have heard of "co-pay." This means a system where you pay a certain amount of each doctor visit and your company gets the rest. For example, your co-pay might be $10. Each time you go to the doctor, you pay $10 and then the insurance company gets the rest. This is a common feature of group health insurance plans.

Out-Of-Pocket Expenses - Most simply put, this is what you are required to pay in deductions and coinsurance or co-payment when you get medical care of some sort. Some insurance plans offer a "maximum out-of-pocket" rate, meaning that if out-of-pocket expenses reach a certain level, they will pay the rest.

Health Insurance Savings Account, or HSA - This is a tax-free savings account you can put money into. You can access and use this money when you have to pay for the doctor or other medical expenses. Many carriers use an HSA and pick a plan with a low premium and high deductible; this way, when they go to the doctor and have to pay that high deductible, they can use this extra cash, and it saves them money.

Pre-existing Conditions - These are illnesses or medical conditions that you have before you take out the policy. In general, anything you have sought medical attention for in the past, especially the last five years, is considered a pre-existing condition. You have to tell them about it in detail, and they will use it to assess the risk of insuring you. Technically, if you had a health condition when you signed on with an insurance company that you didn't know about, it is not considered a pre-existing condition.

Exclusions - This is a really important part of your health insurance policy. These are things that your insurance will not cover. With individual plans, you will have more exclusions. An exclusion might include a carrier's pre-existing conditions, or a certain type of illness.

Primary Care Physician - Some health plans such as HMOs require you to choose a doctor as your Primary Care Physician. In this case, you must go to this particular doctor for check-ups and treatment, or it will not be covered by your insurance. Your doctor can refer you to a specialist or hospital if necessary and you can keep your coverage.

When you're looking for a health insurance plan, make sure you know all the things you need to know. Understand these terms and concepts, and ask whatever questions you need to.

International Medical Insurance - Stay Safe When You Travel

Everyday you can go about your business with the peace of mind of knowing that you are covered. When life throws something unexpected your way, your medical insurance has you covered. But what about when you leave the safety of your country's soil? If you are traveling abroad and not covered by your regular health insurance, international medical insurance can help you fill the gaps.

Most regular insurance plans do not cover you when you are overseas. In all the excitement of planning our trips, we often fail to think about the fact that, if some unforeseen medical emergency were to occur, we have no coverage. You would be at the mercy of a foreign country's healthcare system, which may not provide the adequate care or payment solutions that you need.

Getting Traveler's Insurance

The first step in planning for your medical needs overseas is to look at your regular insurance policy. It will tell you all the specifics about what is covered and what is not covered. Most plans have some limited coverage options for travelers built in. For example, there may be coverage for life-threatening illnesses or serious accidents. Look at your plan carefully and see what is already offered.

If there is some coverage that you lack in your regular plan, you can sometimes get short-term coverage for your trip. Your insurance company can attach what is called a "rider" to your current policy, extending coverage for the specific times you will be traveling.

If they can't cover you, or if you aren't happy with the coverage options, you can also take out a supplemental insurance policy from another company to cover your visit. This might be especially handy if you will be away from your home country for a long trip. Coverage from your company may be hard to get for more than a week or two.

How Much Will It Cost?

Rates vary among different companies and for different lengths of time. Different carriers will also get different rates. Some countries will carry higher insurance policies than others. For example, a country where there are certain risks may be harder to insure. It also depends on the healthcare structure of the country.

You will also be asked if you will be engaging in any risky behavior overseas. This would include extreme sports such as mountain climbing or deep sea diving. These activities carry high risks and are hard to insure, but some companies offer special supplemental package deals for extreme sports travelers.

Coverage Options

Depending on where you are heading and what you are doing, you may want to consider some different options with your coverage. For example, you may want coverage for medical supplies. If you are going to a remote area and may need to provide your own First Aid, you can get covered for this.

Another possible option is evacuation. Nobody wants to think about something terrible happening when they are overseas, but there are sometimes emergencies. Evacuation insurance will cover the costs of getting you to a safe place.

Billing options also vary. Some companies will expect you to pay everything out of pocket, and they will reimburse you later. This is an important issue, because you need to make sure you have the cash on hand to pay. In some countries, medical attention may be denied until the bill is paid.

International Medical Insurance Tips

Your insurance company will issue you an ID card and you should keep it with you at all times. It may be more important than the money you are carrying.

There are several international organizations that provide emergency help for international travelers. These include Medex and SOS. There is also the International Association for Medical Assistance to Travelers (IAMAT), which offers free services.

When you are traveling, it is important that you have the same peace of mind you would have at home. Look at your insurance policy's international medical insurance coverage and pick the best option for you.