What is health insurance?
Health insurance is a complicated and often confusing topic, especially for first-time buyers. This guide will help you understand the basics of health insurance in Florida to make the best decision for you and your family.
When it comes to health insurance, there are a lot of options available to Floridians. And with so many options, it can be hard to know where to start. If you're a first-time health insurance buyer in Florida, this guide will help you understand the basics of health insurance to make the best decision for you and your family.
There are two main types of health insurance: private health insurance and public health insurance. Private health insurance is insurance you get through an employer or purchase yourself. With private health insurance, you usually have to pay a monthly premium, and you may also have to pay a deductible.
As far as public health insurance, there are two types. Medicare and Medicaid. Medicare allows individuals with specific disabilities to receive insurance through the Federal government. Individuals at least 65 years of age also qualify for Medicare. Medicaid, on the other hand, helps individuals with low income or disabilities.
Do I need health insurance?
Like many people, you may ask yourself, "is health insurance worth it?". As of January 1st, 2019, health insurance is no longer mandatory. Some states, such as New Jersey, Rhode Island, and several others, will still give you a fine when filling your taxes for being uninsured.
Luckily for you, Florida does not have any penalties for being uninsured, but having health insurance is still extremely important in Florida. Health insurance gives you the protection you may need regarding life's unpredictable circumstances.
Without health insurance, you may go months or even years without seeing a medical provider, which can become very dangerous when dealing with certain illnesses. If you have a severe accident or health issue due to the extremely high hospital bill, you can significantly damage your credit or even become bankrupt.
How much health insurance do I need?
This question is no longer relevant in 2022. Insurance companies can no longer place a limit on insurance policies under the Affordable Care Act (ACA). The better question would be, how much would you like your out-of-pocket expenses to be?
You may be familiar with deductibles, but many health insurance policies also include an out-of-pocket maximum. Knowing the maximum amount you are willing to pay annually is very important.
The out-of-pocket expenses can be as low as $8,700/year for an individual and $17,400 for a family. Knowing how much you are willing to spend per year will help you choose an insurance provider within your budget.
Once you reach your out-of-pocket maximum for the year, your health plan will cover 100% of your expenses.
What is a premium?
A premium is the amount of money you will pay to your insurance company every month. Your monthly premium cost will depend on how much coverage you will need. Just because you find a plan with a low premium, it may not be a good fit. If you need a lot of medical care, having a lower premium with a higher deductible will not be the best option.
Signing up for a premium with a higher monthly payment but a lower deductible will save you a lot of money if you are someone who needs routine health care.
What is a deductible?
A deductible is an amount you'll have to pay before your insurance policy kicks in. For example, if you have a deductible of $1,500, you will have to pay $1,500 before your insurance policy starts covering your medical expenses.
Once you meet your deductible, you will only have to pay a copay or coinsurance, and your insurance will cover the rest of the costs.
What are out-of-pocket costs?
If you're like me, saving money is essential and cutting down on out-of-pocket expenses is very important. Co-payments, coinsurance, and deductibles are some out-of-pocket costs you can expect to incur; your insurance company will not reimburse you.
What is a co-payment?
A co-payment is the amount you will have to pay for health services. If your co-payment is $30, but the office visit is $100, you would only have to pay $30 if you met your deductible.
If you did not meet your deductible, you would have to pay the complete $100.
Health insurance is essential if you're moving to Florida or live in Florida. Health insurance can be confusing, but we make it simple and find the best options for your life circumstances. Contact us today to receive a free quote.