how does medical insurance work reddit

Since it is so common, many people have lost sight of its underlying purpose. Better plans will cost more money & better employers pick up a higher percentage of the costs. Health Insurance has become an imperative need in our life. Secured with SHA-256 Encryption. Recently we came across an amazing thread on Reddit in which a person describes their incredible reduction in a medical bill. She said I might be receiving a refund at my home at the US within two months. It is a no fault coverage so it applies regardless of who caused the accident. If you see those doctors, they'll pay for more of the visit. Medical Expense/Medical Payments/Med Pay This covers your (and your passengers’) medical bills. How it works: If your plan’s deductible is $1,500, you’ll pay 100 percent of eligible health care expenses until the bills total $1,500. The system is funded by a levy on all salaries. Im just hired for fulltime overnight stocker. Press J to jump to the feed. If you're still in HS or going to college, you're probably covered by your parent's plan. Health insurance is a mediclaim policy that covers you and your family at the time of medical exigency by paying a treatment cost. To start with, what is your monthly payment (your "premium")? Even if you have health insurance this is nice because there are no deductibles/copays. How does Australia’s Healthcare System work? Apparently raises are 2% for grade A & B associates (which you fall under) for the foreseeable future.. How does Insurance work in a world of super heroes? Expenses under this threshold is refunded in full by the government; beyond it, only a percentage of reported expenses is remitted. Insurance is really a form of risk management in which the risk is transferred to the insurance company in exchange for payments or premiums. Car insurance works as a safeguard for your financial well-being and your vehicle in case of accidents, theft, or other incidents beyond your control. An insured has to pay to fix premium amount yearly or monthly . This is known as the individual mandate. Considering a broken bone can easily be billed at $15,000 to set, paying for that insurance saves you next to nothing if something goes wrong, which is the point of insurance. It is a contract between an insurer and insured where the insurance company agrees to pay for the insured's medical emergency expenses up to … Self promoted to customer. I've gotten a notification from my University health insurance plan, Aetna, that I had a claim on my account. Paying monthly insurance bills does not entitle you to free doctor visits, prescription medications or procedures. I´m here at the US with a temporary work permit, somes months ago I had to go to the doctor and I used my medical insurance card. It reads something like this: Recently, I had to be taken to the emergency room twice. How about payment to add your spouse & children to the plan? This type of insurance works alongside your major medical policy (but the two policies do not coordinate) to pay a lump sum benefit (rather than a percentage) of covered costs. We explain the differences between deductibles, coinsurance and copays, in-network and out-of-network benefits, HMO and PPO plans and more. On one extreme, you have plans that just require you to pay $5 for any visit, on the other you have plans that require you to pay for everything unless you end up hospitalized for a major problem & have thousands of dollars in bills. And if the accident / insurance event occurs, the insurance company will bear all or all of the costs in full or in part. Free Insurance Comparison. What are the requirements to keep them going? How much are you paying & how much is your employer picking up? The individual mandate. They'll either be separate issues. What all benefits do you get? How does health insurance work? This is a great coverage, especially if you have no/limited health insurance. Your car insurance company can pay for vehicle repairs, medical expenses, and damages or injuries you cause to another driver. Full time new hires get to start their benefits when they have reached the end of their 90 day probationary period. Unfortunately I have terrible insurance so my total bill was a whopping $10,400. Policies are considered good or bad based on how much they cover, and how much they cost you to cover those things. If you're getting insurance through a job, you often won't really have a choice, or you'll only get to choose between 2-3 plans. How does gap insurance work… You will probably never know how much they spend on you, but they'll tell you up front what your monthly payment is to buy in (the premium) and how much you have to pay if you go to the doctor/hospital (the deductible) to ensure you have some skin in the game. Many people hope to avoid the financial consequences of replacing personal property that is lost or damaged. 401k, medical, dental, vision? On the other hand, companies that treat their employees well will spend more money for far better coverage. Assuming you're talking about being in the US... You and/or your employer pay a monthly fee to an insurance company. How does it work? This policy describes in detail … limit my search to u/Best-Mediclaim-Plan They have about the same effectiveness, but because the name brand advertises on TV and you ask your doctor about it (and he writes you a prescription for it to keep you from complaining, because his time is money), it might cost 10 times as much to buy drug X when drug Y works just as well. Press question mark to learn the rest of the keyboard shortcuts, Former walmart slave. New comments cannot be posted and votes cannot be cast, More posts from the explainlikeimfive community. The concept is simple, but getting that perfect health plan takes some brain power and elbow grease. Happen during your eval in April-May 2017 etc. Explain Like I'm Five is the best forum and archive on the internet for layperson-friendly explanations. The asian woman told me since it was Sunday and that she could not verify my insurance so I had to pay more than a hundred dollars. If you're a woman at age 25, a policy that doesn't contain coverage for birth control or pregnancy/childbirth is not good if you unexpectedly get pregnant. Health insurance does not mean “free health care”. If you need hospital treatment, understanding how it works can help you make informed decisions to get the best care for yourself and your family. I have a general idea. Remember, like many other topics discussed in r/personalfinance, your choices for healthcare are personal. If you're looking for life insurance without the hassle of a medical exam, you should understand how these policies work and if there are any trade-offs Let’s say you make $25/hr in wages and $20/hr in benefits, breaking down the benefits side let’s say it’s $8/hr to pension, $4/hr to annuity and $8/hr to health plan. Take, for instance, McDonald's old "health insurance." This includes medical insurance. Health insurance works the way you want to stay ensured. This post will cover the basics of health insurance, as is relevant for most consumers. But the insurance companies win. Copays work as a fixed cost for a specific service, like $15 every time you fill a prescription for a brand-name drug. Depending on the chosen program, you can partially or completely protect yourself from unforeseen expenses. And health insurance only covers the cost of some medicines because some of them cost more than others. Compared with medical insurance, understanding dental insurance policies is a breeze. We've covered the basics of health insurance for you below. They won't have to wait until November to enroll. Maybe even right away. Press question mark to learn the rest of the keyboard shortcuts. You can buy policies for these types of cover separately or most insurers offer combined policies. It kicks in in January. A deductible is the amount you pay for health care services before your health insurance begins to pay. When do you get raises and what do you have to do to earn them besides work hard and be reliable? 401k, medical, dental, vision? I put that in scare quotes because McDonalds would charge their employees $750 a year to participate in health insurance that would only cover $2000/year in expenses. Obviously we have a very, very different health system in which the most you pay is for parking. What other healthcare or financial coverage gaps may you have? 1 Per IRS guidelines in 2021, an HDHP is a health insurance plan with a deductible of at least $1,400 if you have an individual plan – or a deductible of at least $2,800 if you have a family plan. Will insurance cover your car if Green Lantern decides to pick it up and drop it on a Manhunter? You've come to the right place. https://www.money.co.uk/health-insurance/how-does-health-insurance-work.htm If you have a policy that has a $5000 deductible, a $300/month premium, and gives you 3 different doctors on the other side of town (and will charge you more if you go to a different doctor) as someone under 30, you have a bad policy (very expensive to you). The core idea is pretty simple but the devil is in the details. Learn More About Coverage Gaps. For real though, who's paying for the damages when Superman levels an entire city block stopping Brainiac? For example, most health insurers don’t cover elective cosmetic surgery, such as facelifts, … There are two types of health insurance: hospital and general treatment (ancillary or extras) cover. It's just like insurance for your car, home, or apartment. They may require you to pay 20% of the cost of things, they may require you to make a flat fee (a "co-pay") for services or they may not start paying for things until you've spent a certain amount money yourself. They create lists of the risks (referred to as their actuarial tables) and come up with a price for insurance that ensures they don't lose money. Big time gambling. Coinsurance is the percentage of the cost that you and your insurer have to pay. When would those benefits kick in? When a person purchases insurance, he gets an insurance policy which is a legally binding contract. The deductible is the amount you'll pay out of pocket for medical expenses before your insurance pays anything. Have questions about how health insurance works? There will be limitations on what and when you can claim with any policy you buy. Visits to doctors outside the network may be covered to a lesser degree or not at all. Don't Panic! There are always risks in life such as fire, theft or earthquake. Some plans will require you to get permission first or have a 'referral' from your 'primary care physician' (your "home base" doctor) before seeing a "specialist" (eg - you can't go see an allergy doctor until you've seen your PCP and he says you probably have allergies). Insurance is a way to protect your personal finances from undue burdens. How does car insurance work? I've heard there and better and worse healthcare, and what determines whether one's good or bad? In insurance, a deductible is the amount you have to pay out of pocket before the insurance company will pay their portion of the claim. Health insurance, like all other types of insurance, is you paying a small amount of money to protect against a risk - in this case, that you'll have some kind of health emergency. When would those benefits kick in? Everyone else must either purchase health insurance or risk medical bankruptcy. You pay a monthly premium and your share of annual out-of-pocket costs, and your insurer pays it’s share of covered costs. There may be other reasons for this as well, but this is what comes to mind first. Each clinic or hospital has an allotted quota. Hello Reddit! Health insurance policies do not typically cover all medical expenses. What all benefits do you get? After that, you share the cost with your plan by paying coinsurance. There appears to be a multitude of posts on r/personalfinance about how individuals had unexpected bills because of a problem with their medical insurance or their medical practitioner. Funding is distributed to medical facilities on a monthly basis. The riskier you are, the more you pay - and insurance companies are great with statistics and determining risks. I'm a teen and want to understand how health insurance works. It's supposed to protect your life savings from the devastating costs of a major accident, medical emergency, or a chronic disease. Better plans cover more services & require you to pay less money, better plans give you access to more doctors and make it easier to see them, better plans require you to fill out less paperwork & wait less time to get things taken care of. The riskier you are, the more you pay - and insurance companies are great with statistics and determining risks. How do deductibles work if I have two health insurance plans? Rather, you pay a monthly bill so that the health insurance company will offset the costs of your health care up to or beyond a certain cost. In my union we pay $36k annually for our self funded medical coverage. you wll want to do it asap as its only avilable for a certian amount of time (think 14ishdays) ater that you will need to wait till open enrolement. How does Obamacare work? New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. If you're insistent that you want that name brand bonus, some insurance companies will make you pay for them. Why does the healthcare only cover some medicines? Iam from the Uk so we have a National health insurance here..So I don't fully understand how it works in the US...I read in another thread that one lady and her family have no insurance..they pay oop when needed. Then there's the whole complicated mess of how much you still have to pay for medical care, what gets paid for & where it gets paid for. The original coverage requirement in Obamacare included a tax penalty for those that did not purchase a health insurance plan. you will be able to sign up for the bennaits on the wire now. how does medical insurance work is a tool to reduce your risks. If you do the math over a normal (2080 hr work year you pay (2080X8=$16,640/yr) 16,640/12=1,387. I recently moved to the USA from Northern Ireland for college. A lot of time there will be a "name brand" medication, and then there will be a generic version of the same medicine. So you want more coverage for less money. Asked December 3, 2014 . As a general rule, vision and dental care are covered separately from healthcare in the US. Australia’s healthcare system is complicated, and navigating it can be confusing. Dental insurance policies help many people effectively budget for the cost of maintaining a great smile. Non-covered expenses may be defined by medical condition, type of treatment, or medical provider. November is open enrollment. A 20% coinsurance for means you pay 20% of the final medical bill and the insurance company pays 80%. Many insurance plans have a "network" of doctors that they want you to see. Health insurance, like all other types of insurance, is you paying a small amount of money to protect against a risk - in this case, that you'll have some kind of health emergency. Then there's different ways of covering things. Im just hired for fulltime overnight stocker. In return, the insurance company agrees to pay all or part of your medical bills. Both private and medical facilities exist. 1 Answer. Your employer pay a monthly premium and your insurer have to do to them. There and better and worse healthcare, and damages or injuries you cause to another driver and healthcare. Pays anything US within two months for most consumers form of risk in... Always risks in life such as fire, theft or earthquake it can be confusing total. 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