09 June 2012 ~

Alabama Health Insurance Options

family health care in alabama Alabama Health Insurance PlansPeople who have Alabama health insurance and those who are seeking a suitable plan are often curious about the cost of the policies. More specifically, they’d like to know how the premiums for their health care insurance are calculated. In general, most plans are determined on your age, gender, your current and past health condition, where you live, your income and your occupation.

There are several ways to access Alabama health insurance too. These include employer-sponsored group plans, self-employed insurance, and individual and family policies. Also, if you meet certain requirements you may also be eligible for one of the state’s several government health insurance programs, which are aimed at helping the chronically ill, seniors and low-income families, etc.

al insurance premiums 254x300 Alabama Health Insurance PlansIf you understand what Alabama health insurance plans consist of you’ll have a good idea how the health care system operates. The premiums you pay are basically monthly fees that pay for your coverage. If you receive insurance through your place of work you may find that your employer will pay some of your monthly premiums and if you’re lucky, may even pay them all. If you do pay some or all of your own premium for a group plan, it’s usually deducted from your paycheck.

The premium will depend on the specific type of health care plan you have and how much coverage it includes. However, it’s also based on your out-of-pocket costs, such as coinsurance, co-payments, and deductibles. The plans which have higher out-of-pocket-costs typically come with lower premiums while plans with lower out-of-pocket costs feature higher premiums.

Low Cost AL HMO Insurance Plans

In addition, a low cost health plan such as a HMO, (health maintenance organization), will also come with a lower premium because you’re asked to see health care providers that belong to the insurer’s network when you need medical attention. If you purchase a family or individual plan the cost of coverage will generally be higher the older you are. The same goes for people who have dangerous jobs, such as policemen and firefighters etc.

The out-of-pocket costs are made up of deductibles, copayments and co-insurance, which are often paid each time you visit a doctor or receive prescription drugs. The deductible is the annual dollar amount that you have to pay for treatment before the insurance plan starts to pay its share. For instance, the first $1,000 of treatment may have to be paid out of your own pocket, depending on the amount of the deductible. A deductible is common in PPOs (preferred provider organizations) when you receive care outside of the plan’s network.

coinsurance 300x226 Alabama Health Insurance PlansCoinsurance means you have to pay for a percentage of medical services after the deductible has been paid, which could be 20 per cent for example. A Co-payment is a specific flat fee which has to be paid each time you use a specified health care service. This system is common in both PPOs and HMOs. For instance, you may have to pay a $15 fee each time you visit a doctor and $20 when you have a drug prescription filled.

If you find some of this to be confusing, don’t worry as you’re not the only one who finds the best health insurance system to be complicated. However, if you’d like to have all aspects of Alabama health insurance clarified and explained to you, it’s a good idea to visit a licensed agent or broker to receive some free advice on all of your health care options.

Comments are closed.