Understanding health insurance
Last reviewed: October 2011
Choosing a health-insurance plan that's right for you starts with understanding how insurance works. Unfortunately, that's not so easy. Below is a quick lesson in the basics, plus what you should look for in a health-insurance plan.
How does health insurance work?
The U.S. health-care system is complicated. Making the system work for you starts with understanding where you fit in.
Choosing a good plan
The high cost of health insurance might tempt you to opt for something that provides inadequate coverage. Don't give in.
Why does health insurance cost so much?
A number of factors—an aging population, expensive new technologies, waste, and high-profit margins—conspire to make insurance
in the U.S. among the most expensive in the world.
PPOs vs. HMOs
With a health-maintenance organization, you'll probably have fewer out-of-pocket expenses, but also less choice.
What's a high deductible account?
Combining a high-deductible plan with certain kinds of tax-saving accounts can make sense for some people, especially those
who are relatively young, healthy, and can afford it.
Watch out for junk health insurance
Millions of Americans have unknowingly signed up for "junk" health insurance, plans that seem attractive because they have
low premiums, but in fact have coverage so skimpy they often won't cover even basic medical expenses.
