Insurance FAQ

If I’m healthy, why should I purchase health insurance?
A health insurance plan protects you if you ever become ill or have an accident. It’s important to cover your health just as you would your home or vehicle.

Can I obtain family health insurance if I’m self-employed?
This depends on the particular state in which you live because requirements vary across the country. Some insurance companies will provide a basic level of coverage to all small businesses, whereas others don’t provide any coverage. Try to find a company that specializes in finding coverage for small businesses.

What should I do if my children and I are currently covered under my spouse’s group health plan and we are getting divorced?
You should check with your attorney to inquire if the divorce settlement can include a provision for health insurance. As a temporary measure, you may quality for the federal COBRA program, but you may need to purchase additional health coverage to protect you and your children.

What is a primary care physician?
A primary care physician or PCP is the doctor you visit on a regular basis when you’re not feeling well.

Can I obtain family health insurance if I’m self-employed?
This depends on the particular state in which you live because requirements vary across the country. Some insurance companies will provide a basic level of coverage to all small businesses, whereas others don’t provide any coverage. Try to find a company that specializes in finding coverage for small businesses.

Can my health insurance provider decide not to renew my policy?
Yes, your company can decide to non-renew your policy if it’s not guaranteed renewable. Make sure to read your insurance contract carefully for details.

What is COBRA?
This is the federal law often called “continuation coverage” that protects the health care rights of employees who have been laid off and spouses and dependents of those individuals. You may be able to retain your health benefits for 18 to 36 months, depending on your circumstances.

What is a waiver?
If you choose a waiver of premium, you must pay more each month for your premiums. However, if you become sick and can’t pay your premium, your insurance company will pay it.

What is a cap?
Most fee-for-service plans include a cap which refers to the maximum you must pay for medical bills in any one year.

What is the main difference between coverage provided by health maintenance organizations (HMOs) and basic and major medical expense plans?
HMO coverage usually provides comprehensive and preventative care with very few exclusions, no or nominal deductibles and small copayments. However, insurers have much less freedom to choose physicians under HMO coverage since patients are usually required to be under the care of a primary care physician.

What type of coverage is included with a major medical plan?
Most major medical plans cover a wide range of medical expenses including hospital expenses, physician expenses, private duty nursing, diagnostic x-ray and laboratory services, surgical expenses, prescription drugs, artificial limbs and organs and ambulance services.

What is health insurance?
This is a promise by a health plan or insurance company or to provide or pay for health care services in exchange for payment of premiums.

What does travel health insurance cover?
Coverage depends on your particular insurance plan, but most travel health insurance covers the cost of most medical bills and related expenses if you suffer an illness or accident during your travels.