![]() |
|
|
Another well-known form of private insurance is the health maintenance organization (HMO). These organizations came into existence to deal with rising health care costs, and their primary purpose is to contain costs (this is known as cost containment). Currently, many policies are administered through a primary care physician who then makes necessary referrals to other health care professionals. Many policies include specific physicians within the network of the plan, and patient-subscribers are fully covered only if they are treated by those physicians. Some policies allow for treatment by other physicians who are considered to be out of the network, but the patient will bear an additional cost for consulting these physicians. The scope of coverage and the benefits available in private health insurance vary significantly from policy to policy and from group to group, and can often be confusing. Each policy must be read thoroughly and attentively and judged separately. Do not make any assumptions about the extent of coverage, as you do not want to end up being responsible for more of the cost than your family can afford. Before you decide on the policy that is right for your family, you should closely scrutinize the deductible clauses, co-insurance, maximum benefit levels, and limits on out-of-pocket liability. A deductible is the amount of money a family must pay before the insurance company will pay anything. Co-insurance is the portion of charges that must be paid by the family after the deductible portion has been met. Maximum benefits are the dollar amount, or the ceiling, that the insurance company agrees to pay in a given period of time or for a given illness. The out-of-pocket liability, or the stop-loss clause, is the limit the insurance company imposes on a familys out-of-pocket expenses for a given calendar year before the insurance company pays 100 percent of further covered charges. Related Links EHealthForum.com: Cerebral Palsy Information Home Financing Care Letters of Medical Necessity Health Insurance |