It is a known fact that owning some form of healthcare insurance is an essential aspect of life. As crucial as owning healthcare insurance is, it is neither free nor cheap. However, some packages provide a variety of healthcare policies with varying degrees of coverage and cost. These packages are available for a variety of citizens, depending on their needs and financial capacity. This variation is significant as it provides sufficient healthcare coverage to a larger percentage of individuals. Additionally, the cost of each policy depends on the state or city of an assurer, which accounts for differences in premiums and copayments.
- Factors that Affect the Healthcare Insurance Cost
- Health Maintenance Organization (HMO) Insurance Plan
- Point of Service (POS) Insurance Plan
- Exclusive Provider Organization (EPO) Insurance Plan
- Health Reimbursement Arrangement (HRA)
Factors that Affect the Healthcare Insurance Cost
Apart from the type of policy, other factors affect the cost of healthcare insurance. The age, location, and a number of assurers affect the total cost of a policy. Additionally, individuals with pre-existing medical conditions may pay more in cost as they are more likely to access healthcare services at a greater frequency. Also, individuals with addictive habits such as smoking or drinking would pay almost 50% more than usual as they are more likely to develop long-term health problems.
Health Maintenance Organization (HMO) Insurance Plan
Although the HMO package has many bottlenecks, it is generally quite affordable to a larger population. The cost of the premium for an average American is about $470 to $480. This figure translates to about $5,640 to $5,760 per annum, which is significantly lower than the premium paid for other forms of insurance policies.
When an individual receives any healthcare service, they would usually pay some amount of money as a copay. The amount paid is less for individuals receiving services from providers within the provider network of the insurer. Individuals that receive services outside the provider network may likely pay more or bear the cost of the service received.
Point of Service (POS) Insurance Plan
The POS healthcare insurance package also has a reasonable rate of premium. It usually costs about $500 to $510 per month. This amount must be paid notwithstanding, whether healthcare is received or not. Individuals are charged some copayments when they access healthcare services. For example, an individual would pay $10 to $30 as copayments for consultations that would cost an average of $100. However, assurers are not required to pay any more deductible.
Exclusive Provider Organization (EPO) Insurance Plan
The EPO insurance package can usually cost an average of $490 per month and about $5,880 per annum. Assurers pay copayments for services such as lab tests, prescription drugs, and more. Any healthcare service received outside of the provider network may have to be paid by the assurer unless it is for emergency purposes.
Health Reimbursement Arrangement (HRA)
Unlike other healthcare insurance plans, HRA is a plan that allows a business to set aside a monthly amount of money for its staff’s healthcare. A business would usually provide $437 per month to each of its staff. The staffer can utilize the money to either pay for medical services or purchase an insurance policy.
Conclusion
A great degree of diversity exists in the healthcare insurance industry to provide insurance coverage to as many people as possible across the country. Depending on the income and needs of an individual, they can subscribe to one of the many healthcare insurance plans that exist in the market. Each plan provides an individual the basic coverage for essential healthcare services at a specific cost. Supplementary services are available to enhance the benefits and experience of an assurer.
