When people can no longer pay for the medical costs for one reason or the other, then that is the time when the health insurance comes in the picture. The health insurance is simply a contract drawn by two parties, the insurance provider and the individual which can pay for the medical costs of the individual at some point in time. And since this is a contract between two willing parties, then the specifics about the plan will be known in advance which is then expected to be known by the two parties before they sign the contract.
The health insurance contract will usually include the type- which can be a family health insurance and an individual health insurance- and the amount of health care cost, and the contract will specify the different payment obligations that can be expected from the individual. Now these payments and obligations may differ from provider to provider, but the following will be a listing of some of the most common obligations that the individual can expect once he signs up for a health insurance plan.
The first kind of obligation is the premium. The premium is that obligation that will be paid by the account holder every month in order to purchase the health insurance coverage. The deductible is another obligation that will be faced by the individual in search of an individual health insurance plan or a family insurance plan. The deductible is the amount that the individual will have to pay first before the health insurance plan pay for its share in the plan. The co-payment is another obligation that needs to be faced in case a health insurance plan is needed. This is the fee that the individual have to pay just before the health insurance plan provider pays for the persons visit or service to a health professional. This obligation should be paid every time a service is taken.
The co-insurance payment is another variation of the fee that may come out when a person gets the services of a health insurance plan or a family health insurance plan. In this kind of fee, a partial payment is made by the person with the health insurance. Instead of paying 100 percent for the surgery services, then he can pay 25 percent and the rest will be shouldered by the family health insurance provider.
The contract may also include a provision for exclusions and this mean that there will be services that will not be covered. The persons health insurance coverage will be limited by this exclusion. What these exclusions means is that the holder of the family insurance plan will pay for the full cost of the non-covered services. This is the reason why interested applicants for the insurance should ask more about the health insurance coverage so that there will be no misunderstanding in the end. Knowing about the health insurance coverage is important too so that the interested person can have an understanding about the coverage limits. This is an important obligation in the individual health insurance or any form of insurance. These are just some of the common obligations, and interested applicants should expect other obligations and that will depend on the provider.