Medical debt is the cause of more than 61 percent of bankruptcies in the US today. That’s creating a lot of financial distress.
Imagine your doctor telling you that you have cancer. If you don’t have the right coverage, you have a difficult choice. Go into debt and bankrupt your family or refuse the medical care you need.
There’s a big difference between health insurance vs. medical insurance protection. Here’s a guide to help you understand how they compare.
What Is Medical Insurance?
Basic medical insurance costs less than health insurance. It offers basic hospitalization coverage up to a limited amount. You can’t get any add-on protection with this type of plan.
You can get medical insurance for individuals or as family coverage. Each company may offer different benefits for its members. It’s important to read the fine print before you select the plan.
The hospital must admit you for more than 24 hours to access your plan. Medical insurance only pays for accidents that occur and specific illnesses.
There are two types of claims you can make under these policies. They are cashless and reimbursement claims.
When a recognized hospital treats an insured person, they don’t have to pay for the care they receive, up to the policy’s limit. That’s a cashless claim.
A reimbursement claim is when the person pays for treatments upfront. Then they submit receipts to the company for payment. In these cases, you need to notify the company in advance of your care.
What Is Medicare?
Medicare is federal health coverage for people in the US who are older than 65. Some younger people with disabilities and people with renal failure may be eligible as well.
The three main options are hospital coverage, medication, and outpatient services. Each of these options costs money, but Medicare’s coinsurance program may cover some of the costs.
Some private companies offer a Medicare Advantage program. It blends the three options and includes extra benefits. This gives patients additional flexibility when deciding what type of product to buy.
What Is Health Insurance?
Health insurance covers more expenses than basic hospitalization. Some of the items that may be in your plan are:
- ambulances
- room rentals
- pre and post-hospitalization care
- maternity and critical illness care
- preventive care and vaccines
- screenings and check-ups
If admitted to a hospital, you will want to find one that recognizes your coverage. You can use the cashless claim option offered in the policy and won’t have to pay for your care upfront.
Many private firms offer affordable dental and vision protection. These are two important areas to consider for coverage.
Now that you know the different types of coverage available, you can find the right plan for your family.
Health Insurance vs. Medical Insurance
Most people don’t think much about comparing health insurance vs. medical insurance until they need to use it.
For affordable protection that will cover your family’s medical needs, connect with FutureWise Insurance. Their professional team is ready to find you the best plan that meets your budget.