Introduction to the main types of medical insurance in the United States

First, the fee-for-service, pay first and then reimbursement (FeeforService) is a kind of traditional medical insurance in the United States, the insured can choose at any time, go to any hospital clinic. But you must pay all the medical expenses first, and then go to the insurance company for reimbursement with receipts. The insurance company usually reimburses 80% of the medical costs, and the insured person pays 20% of the costs.

This type of health insurance is generally more expensive. It is suitable for those who like freedom and need more choices.

Second, controlled medical insurance (ManagedCare)

Most of the private medical insurance companies in the United States belong to the controlled medical insurance (ManagedCare).

This type of insurance is characterized by the use of certain medical services before the insured, such as medical examinations, see a specialist, hospitalization, etc., have to have the consent of the insurance company, otherwise the insurance company can refuse to pay for medical expenses. If the insurance company thinks that the medical services you use are beyond the reasonable scope, it will ask the policyholder to pay for them.

Controlled health insurance companies also control the medical practices of health care providers (doctors hospitals, etc.) to prevent doctors from abusing medical services for their own benefit. Controlled health insurance can help reduce overall health care costs, but it can jeopardize a patient's ability to receive timely and appropriate care.

Third, the health savings account (HealthSavingAccount, HSA)

Health savings account insurance (HealthSavingAccount, HSA) is characterized by the insured must be enrolled in a high out-of-pocket (highdeductible) health insurance plan, and then use the funds in the health savings account to pay for medical care, and enjoy tax-free treatment. expenses tax-free.

Under 2016 standards, the minimum out-of-pocket requirement for individual coverage is $1,300 (minimum deductibles may vary by policy, so look carefully at the terms and conditions before you buy), and an individual's total out-of-pocket and other out-of-pocket costs*** do not exceed $6,550 per year. The minimum out-of-pocket requirement for family coverage is $2,600, and the total out-of-pocket and other out-of-pocket expenses for the family do not exceed $13,100 per year***.

Funds deposited into a Health Savings Account are deductible for income tax purposes and are 100% tax-deductible. There is a limit to the amount of money that can be deposited into a Health Savings Account each year, not to exceed $3,350 for an individual account and $6,750 for a family account, based on 2016 rates. Those age 55 and older can deposit an additional $1,000 per year.

Enrollees can withdraw funds from their health savings account to pay for medical expenses such as deductible, co-payment, prescription drug costs, etc.

If the funds are deposited into a health savings account, they can be used to pay for medical expenses.

If the funds deposited into the Health Savings Account are not used up in the current year, the remaining funds in the account can be accumulated until the new insurance year. Upon retirement, all accumulated funds can be withdrawn for other purposes.

The premium for a high-deductible plan is usually lower. However, this type of plan is better suited for catastrophic coverage, where the individual has to contribute more to the cost of a common medical condition.

In addition, if you need money urgently, you will lose 20% of the money in your HSA account if you don't use it for medical purposes. You can call the HSA account service number for details.