HE-558
INPERSPECTIVE
CONSUMER & FAMILY RESOURCE MANAGEMENT
COOPERATIVE EXTENSION SERVICE, PURDUE UNIVERSITY, WEST LAFAYETTE, INDIANA 47907
BUYING HEALTH INSURANCE
Buying health insurance — or evaluating an old policy — can be baffling. And no wonder! As medical costs rise, health insurance is covering more and more health care services. And insurance companies are adding new kinds of policies.
More than 183 million Americans are protected by health insurance, and more people buy health insurance every day. These consumers — and that probably includes you — need to be informed about health insurance.
Making it Easier
If you’re confused by the many policies available, don’t despair. Actually, most of these policies can be put into one of six categories. These six major forms of health insurance are designed to help you pay for hospital bills, doctors’ fees, and other medical care needs.
Chances are the policy you are investigating will fall into one of these categories:
•	Hospital expense
•	Surgical expense
•	Physician’s expense insurance
•	Major medical expense
•	Disability insurance
•	Dental care
Hospital Expense insurance
Hospital expense insurance (hospitalization) provides coverage for hospital care for specified lengths of time. Room and board, routine nursing care, and minor medical supplies are covered by this insurance. Additional services such as laboratory tests, X-rays, anesthesia and its
administration, use of operating facilities, drugs and medications, and local ambulance service may also be included.
The amount paid for hospital expenses and the length of time payments differ from policy to policy. When you consider this type of insurance, investigate policies offered by several companies. Determine which coverage fits your family’s needs.
Ask these questions about hospital expense policies:
•	How many days in the hospital are covered?
•	How much will the policy pay per day for room and board?
•	How do the policy payments for room and board compare with average charges for room and board in your community?
•	How much does the policy pay for related hospital expenses — anesthetics, X-rays, drugs, etc.?
•	Are there waiting periods before certain personal conditions are covered?
•	Do I have to pay a deductible toward hospital expenses before benefits begin?
•	Is the policy renewable? Under what terms?
•	What are the limitations or exclusions of the policy?
Surgical insurance and physician’s expense insurance are usually available only in combination with a hospital expense policy or as a supplement to a hospital expense policy. Allowances for various types of surgery are set by the issuing company. These allowances vary from one company to another.