Medical Insurance

Medical insurance, which is often referred to as health insurance, offers coverage to those who seek medical attention for a variety of reasons. Often, health insurance is provided by companies to employees as part of a benefits package. Sometimes this type of package includes dental insurance as well, but this is not always the case. In cases where an individual is unemployed or the employer does not offer any type of insurance plan to workers, a private plan may be purchased.

While buying health insurance can be costly, it can end up costing far more to not be insured and then pay out of pocket for doctor or hospital visits.http://money.cnn.com/magazines/moneymag/money101/lesson16/ Medical insurance and coverage varies from state to state.

Insurance plans are generally either PPO (preferred provider organization) or HMO (health maintenance organization). PPO plans allow the insured to choose their own health care providers, so long as the providers work with their specific insurance company. HMO plans require members to choose a primary care physician within their network, who then may refer clients to other specialists in the network.http://healthinsurance.about.com/od/understandingmanagedcare/a/HMOs_vs_PPOs.htm

Within these categories, types of medical insurance include major medical, short term major medical, accident insurance, supplemental insurance, and hospital/surgical only insurance. Some of these plans are more comprehensive, while others are generally only used in emergency situations.http://www.tennessee.gov/commerce/insurance/documents/majormedicalcompanies103008.pdf

The content in this page is not a substitute for professional financial or medical advice. Please contact your financial adviser or physician before using the information presented here.