FAQ’s
Frequently Asked Questions
Q: If I am healthy, do I really need health insurance?
A: It is a common misnomer that healthy people do not need health insurance. The
idea that health insurance is needed for those not of a healthy disposition is erroneous.
Every person should have health insurance as an “insurance” policy for the rising
health care costs. Without trying to sound too much like doomsday is approaching,
strange accidents or health problems occur even among the healthiest of people.
In reference to health care, people should hope for the best and plan for the worst.
Q: What is the basic difference between individual and group health insurance
coverages?
A: An individual policy is purchased by you directly with the insurance company.
With a group health insurance policy, the group is the master insured and the insurance
company contracts with the group.
Q. My company recently switched my health insurance plan from a PPO to an HMO.
What is the difference between the two?
A. There are many differences. However, the primary distinction is that coverage
for an out-of-network provider is more restrictive under an HMO. An HMO also may
require that you designate a primary-care physician from within the network.
Q. I’ve heard about pre-existing medical conditions. Do all health insurance
plans exclude coverage for pre-existing conditions?
A. No. Most health plans have limitations on coverage for pre-existing medical conditions,
such as a waiting period before pre-existing medical conditions are covered.
Q. If I lose my job because my employer went out of business can I still get
COBRA?
A. No. When your employer goes out of business, the group to which your insurance
applied also is gone. For this reason there is no way to continue your group coverage.
Q. If I purchase a supplemental health insurance policy, do I still need major
medical insurance?
A. Yes. Supplemental insurance products such as cancer, heart/stroke and accidental
injury insurance aren’t a replacement for major medical insurance. Instead, these
policies help to cover expenses that are not covered by major medical insurance.
Holt Information Systems