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The Truths and Myths about Health Insurance

By on August 18, 2011 in Health Insurance, Insurance

Whether you are obtaining health insurance sponsored by your employer or researching an individual policy, health insurance can be a complex type of insurance to understand. According to the Life and Health Insurance Foundation for Education, there are three major myths when it comes to health insurance. Now, it is time to dispel the myths with the truths so that you have the information you need to evaluate your current policy, find a new policy or at the very least understand the health insurance policy that you are already have.

Insurance Companies Control Health Insurance Expenses

Health and medical expenses are high. The cost of health insurance is through the roof. Most individuals believe that the reason the health insurance costs and medical expenses are so high is because insurance companies are setting the prices. The truth of the matter is what is really driving up the cost of medical care and ultimately health insurance is the government-sponsored insurance programs, such as Medicaid and Medicare. Individuals who are obtaining their own health insurance policies and employers that are offering employer-sponsored plans to their employees are picking up the cost for offering these government insurance programs.

All Big Employers Offer Health Insurance

One of the second major myths that consumers believe is that all major employers, big companies and large corporations offer health insurance as a benefit to their employees. The opposite is actually true because not all large companies offer health insurance as an option to employees. In fact, according to the Kaiser Family Foundation health insurance coverage is not an option for one out of every five employees. To put it in prospective, these are companies that employ more than 500 employees.

Employers Offer Inexpensive Health Insurance Options

The third major health insurance myth is that the coverage employees receive from employer-sponsored plans is less expensive than individual health insurance policies. This is not always the case. In some cases, the more employees that participate in a group plan, the lower the premium cost is for each individual. The problem between group plans and individual plans is that individual plans allow the individual to only choose and pay for the health insurance coverage they need. Group policies come in a one-size-fits-all scenario. This means that if the group policy has maternity coverage, even if the employee is a man that will never use the maternity coverage, the company and the employee are paying for this coverage.

What you believe about health insurance and what the truth is may not match. Learn some of the top myths about health insurance and then learn the truths so you are an educated consumer. Understanding health insurance policies, terms, conditions and coverage is important whether you already have a policy or you are shopping for a new one.

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