Health Insurance Articles
3 Differences Between Basic Coverage And Extended Health Care Plans
2011-09-02
Health insurance has been on a steady climb for over two decades now. But the costs for health care have been further impacted by the signing of the Affordable Care Act in 2010. However, even before the bill was signed into law, many US citizens saw their health insurance costs rise with no explanation. The reason costs are so high is that it costs a lot more to care for each individual, in addition to new breakthroughs in the medical field and new disease constantly popping up. The rising costs have forced many people to release their health insurance plan or choose not to obtain one in the first place. This fact is worsened by the fact that many employers no longer provide health insurance as part of their benefits package. However, there are still affordable plans out there - you just need to know what type of plan is right for you. Health care plans that are cheaper may not always provide you with what you need. Basic coverage is much different than extended health care plans, and it behooves you to know the difference.
Basic Coverage Health Care Plans
Basic coverage plans give you just that - the basics. With a basic plan, you'll be able to see the doctor, get your annual checkup, and possibly blood work and prescription medicines. However, that's where the coverage tends to stop. For any further work, your insurance provider gives you a set schedule of costs for each type of procedure. If you need x-rays, you have a set amount to pay. Sometimes, this also prevents people from getting any additional procedures done. On the other hand, a more robust plan will cover just about anything that's not cosmetic. The percentages paid for by the provider differ by provider and plan, but generally, most procedures are covered at least partially.
Costs Associate with Plans
Monthly premiums for basic plans remain fairly low. The reason is that you have to pay for each doctor's visit and hospital visits require a deductible to be paid - usually fairly high - before the insurance kicks in. For extended plans, premiums are higher, but doctor's visits are cheaper and your deductible is also much lower. You also pay less for most procedures.
Annual Maximums
The annual maximums associated with basic plans tend to be much lower than for extended plans. That means that you'll run out of insurance money much quicker for fewer procedures. On the other hand, extended plans have higher ceilings which mean if emergencies come up, you'll be covered. That's really why the maximums are even put into place - to provide patients with money they need for emergencies.
