1. Question: What is Medical Insurance?
Health Insurance Quotes Wiz Answer: Medical insurance covers individuals and their families against
unforeseen expenses arising from illness, injury or accidents. Many consumers purchase auto insurance
to protect their vehicle, others purchase homeowners insurance to protect their property. Medical
insurance is just another type of protection that is always a smart investment.
Today, with medical insurance costs rising dramatically each year, even relatively simple medical
procedures can run into the thousands of dollars. In addition, the type of care available and various
policy options are also becoming more complex.
In order to reduce the risk of unexpected medical insurance costs, private health insurance companies
now offer a vast array of medical insurance plans. These plans vary widely in terms of coverage, costs
and benefits. It’s important to know the difference.
At first glance, different medical insurance quotes, plans and policies may seem the same. However, after
reviewing the entire thing and breaking through the technical jargon, you may discover they are quite
different. Buying medical insurance is one of the most confusing things consumers purchase because of
the often difficult-to-understand terminology, exclusions, and limitations, contained in these medical
insurance polices.
Question: Who Provides Medical Insurance?
Health Insurance Quotes Wiz Answer: Medical insurance coverage is available from commercial medical
insurance companies; hospital and medical service plan providers, like Blue Cross and Blue Shield; and
health maintenance organizations (HMOs) like HealthNet, PacifiCare and Kaiser, etc.
Other forms of medical insurance are provided specifically for members of the military, elderly
(Medicare), federal civilian employees, veterans of military service, and other special interest groups like
American Indians and Alaskan natives.
Medical insurance can be purchased on an individual or group basis. Group health insurance, generally
available through an employer, may also be offered by other various organizations such as federal
societies, labor unions, college health departments, and rural and consumer health cooperatives. The
employer usually pays part or all of the costs for the group health insurance available to employees.
However, since the protection provided by group health insurance varies from plan to plan, it is wise to

2. check with your employer's human resource department or your union office, to find out exactly what
medical insurance coverage and benefits are available to you.
If your group health insurance does not fully cover all of your health needs or you are self-employed,
then you may need to supplement your coverage with an individual medical insurance plan. Individual
medical insurance can be tailored to your particular needs and provided by the medical insurance
company or agent of your choice. Because medical insurance coverage and costs of such policies vary
from company to company you should shop around and compare the prices as well as benefits offered
before making a decision to purchase medical insurance.
Question: What are the Types of Medical Insurance Quotes and Policies and How do They Operate?
Health Insurance Quotes Wiz Answer: Medical Expense Plans--- pay expenses incurred for diagnosis and
treatment of medical conditions
Payments may be made to either YOU or your medical provider directly. If it’s your provider, you must
"assign" your benefits to them. The policy or employer benefit booklet will detail the terms and
conditions of what is covered and what is not covered under the medical insurance plan. Its important to
read this contract BEFORE you need to use your medical insurance plan and ask your agent or employer
to explain anything that may be confusing.
Question: What are Reimbursement Medical Insurance Plans?
Health Insurance Quotes Wiz Answer: Full “freedom-of-choice” plans allow you to choose any doctor
and hospital. These policies call for a "deductible." This means that you must pay a stated amount first,
before the medical insurance company begins paying benefits. The deductible can be anywhere from
$100 to several thousand dollars. The general rule here is: the higher the deductible you are willing to
accept, the lower the cost of your overall medical insurance premium. "Co-insurance"- the medical costs
you are obligated to pay with your insurer, is also involved.
For example, most freedom of choice medical insurance plans will pay 75% to 85% of all eligible medical
costs above the deductible. You would pay the remainder. In other words, a medical care bill totaling
$10,000 of eligible expenses would require you to pay $1,500 to $2,500 above the deductible. Medical

3. insurance policies that require you to pay a portion of the costs above the deductible, usually feature a
"stop loss" provision. This is the point where you stop sharing the costs with the medical insurance
company and they pay all the bills at 100% for the balance of the current calendar year.
Preferred Provider Organizations (PPO) Plans allow you to choose a doctor or hospital from a list of
"preferred" providers in order to receive maximum benefits. If you go to a doctor or hospital that is not a
member of the preferred list, the medical insurance plan will cover a lesser percentage of the costs. PPO
plans have many of the same features as freedom-of-choice plans including coinsurance and stop loss
provisions. It’s a good idea to check with the medical insurance carrier BEFORE you use the plan to
determine if your physician or hospital is a contracting provider with your plan. Also, it is your
responsibility under these types of medical insurance plans to make sure your doctor refers you to other
"preferred" providers.
Question: What are Prepaid Health Contracts?
Health Insurance Quotes Wiz Answer: Health Maintenance Organizations (HMOs) were formed with the
idea that health costs could be controlled and they could provide preventive health care before
members become ill. HMOs are comprised of hospitals, doctors and allied medical personnel who have
contracted to provide health care to members in return for a pre-paid monthly medical insurance
charge.
When joining an HMO medical insurance plan, members select a doctor, their "primary care physician,"
from a list provided by the HMO. Typically family practitioners, internists, and pediatricians manage all
medical care including referrals to specialists and determining whether further lab tests or x-rays are
needed. The system is designed to eliminate any unnecessary care, which would ultimately increase total
health care costs.
HMO's provide incentives for individuals to seek medical care. In order to see a doctor for an office visit,
you would pay a small copay- usually $10 or $15. In addition, prescriptions are available for a small
copay. In terms of hospital expenses, they are usually covered at 100% for little or no copay. With an
HMO, you do not have the option of going to a medical provider who is NOT part of the HMO network.
HMO's are available on both a group and individual basis.
Question: What are Government Sponsored Health Programs?
Health Insurance Quotes Wiz Answer: Medicare--- A federal program which provides medical coverage
for people over the age of 65 and for those who are permanently disabled. Contact your local Social
Security office for more information and enrollment instructions.