Having the proper insurance is an important part of managing risk. I have seen many people with over $100,000 of medical bills on their credit report because they were not covered. I had my insurance contact, David Sass, give us some tips to make sure your covered.

Health insurance is a form of risk management that individuals use to protect themselves against an unpredictable health loss. An insurance policy is a contract between an individual and an insurance company that transfers that loss from the individual to the insurance company for a fee. All policies are not the same and should be reviewed and understood by the individual. Here are the most important aspect to be consider.

1. Doctor and Medical facility availability: An individual needs to make sure the doctors, hospitals and medical groups they want to use are contracted with their insurance company.

2. Premium (monthly cost): This month fee which is paid by the individual should be affordable and the individual should be able to maintain that premium over a period of time within the individual’s budget.

3. Deductible: The amount that the policy holder must pay out-of-pocket before the health insurance plan pays its share.

4. Copayment: The amount that the insured must pay before the health plan pays. This is a lot like a deductible but is applied to individual services, which are usually waived from the deductible (except for prescription drugs).

5. Exclusions: Not all services are covered in some plans. A lot of new plans do not have coverage for maternity or brand name prescription drugs. These exclusions can lower premiums.

6. Out-of-pocket maximums: This is the amount that the policy holder obligation ends under coinsurance and the insurance company pays 100% of the cost.

Health insurance policies can be very confusing. It is best to find an insurance agent who specializes in this kind of coverage and meet with them to review the detail. Insurance plans are no more expensive using an agent than going direct.