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The Doctor is Affordable

Health insurance is offered by the employer or you can buy it yourself. Based on your historical information, the insurance agency anticipates your health care expenses. The premium depends on the frequency and the value of the claims. This is sufficient to cover the increasing healthcare bills.

You however have to work a few things out with the doctor, like the cost details of the items in your bill. You must also be aware of the treatment you are undergoing. A healthy lifestyle can keep you from falling ill and keep insurance as a safety net.

There are two kinds of health insurance:
1. Indemnity Plans or Fee-for-service
In this program, your medical bill is sent to the insurance company for settlement.
2. Managed Care
In this program, there are certain rules that help keep your costs low. For example, specifying a particular doctor to manage your health or using a pre-decided network.

When it comes to health insurance we face the problem of adverse selection. This means that only those likely to require large medical expenses are the ones who will buy the insurance. Those who do not anticipate major expenses will not buy a plan but would rather pay the bills as those occur. The company will thus end up losing money. To prevent this, the insurance company uses very detailed medical history forms. High risk customers pay a larger insurance while those at a low risk pay a lower premium.

You can now arm yourself with a health insurance policy.

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