Health Insurance Premiums
It is a well-known fact that costs for health insurance premiums are on the rise and have no end in sight. There are more uninsured and underinsured Americans now than ever before. In 2007, employer health insurance premiums increased by 6.1% which is twice the rate of inflation. The average cost for family coverage provided by employers is around $12,100 annually. For individuals, it is more than $4,400 annually.
Experts have agreed that health insurance companies are overcharging with administrative fees and have excessive inflated prices, poor management and inappropriate care. This is causing health care costs to rise and has a negative effect on the security of families.
Health Insurance Premium Definiton
Health care premiums are defined as monthly payments that are to be made to an insurance company. Usually once the full cost of the plan is paid (12 x monthly fee = full cost) the insurer will begin making medical payments for services rendered.
HMO Premiums
Health Maintenance Organizations (HMOs) usually have affordable premiums. The monthly rate never changes and must be paid whether you are using its services or not. Co-payments may also be necessary when it comes to doctor visits and prescription drugs. For example, if you are buying prescriptions that amount to $15, you may have to pay $7, depending on your plan.
A Primary Care Physician (PCP) is usually required with the HMO plan. The PCP manages your care and recommends you to specialists. The primary care physician generally has to be a member of the HMO network in order to qualify as a health care provider under your HMO plan.
PPO Premiums
Premiums with Preferred Provider Organizations (PPO) are usually higher than that of an HMO plan. With this option, you aren’t required to have a PCP. A great way to minimize out-of-pocket costs is to use “in-network” providers.
POS Plans and Premiums
The Point of Service (POS) option is like the PPO plan. Again with this health insurance, you must have a PCP manage your care.