Michigan health insurance companies select applications after a medical review (medical underwriting), based on the individual's:

Age

gender

Health condition

Prior medical history

Other characteristics

Such information will aid them to decide the rate of the risk involved in insurance issuance to the individual. There are no limitations to the amount of money a Michigan health insurance can charge for the premiums. The degree of risk will determine the amount of premium you will have to pay or in some cases the reason for rejection of insurance. But once you have secured your insurance policy, Michigan health insurance companies cannot cancel your insurance for any reasons such as age or health conditions.

The Health Insurance Portability and Accountability Act (HIPAA) stipulate that persons who qualify are eligible for an affordable Michigan Health Insurance without pre-existing conditions. Individuals who have used all his/her COBRA and are not entitled for Medicare, Medicaid or a group plan, can avail HIPAA Michigan health insurance.

Selecting the right health plan can be tricky and complex.

The Best policy is the one that will cater to your requirements and sources. Hence is mandatory that you prepare a list of questions that will assist you in the right selection.

Expenditure Health Care-

What would be the monthly premium

Do I cover the most important medical expenses or all my medical expenses

Do I have to pay deductibles before the insurance begins so that my costs are covered

If I visit doctors outside the plans arrangement how much more do I pay

Can I afford a medical policy at least for my children

Desired Services:

Which hospitals, medical providers and doctors are included in the plan

Are there sufficient qualified doctors I want to consult

Are there good hospitals and care centers nearby my house or office

Am I entitled to consult a medical specialist or do I have to seek referrals

Does the insurance take care of delivery cases

In case of major illness how much more do I pay

You can consult your doctor, friend policy holder, a personal consultant or even web guides.

Know the Health Insurance Language:

The language of health insurance can be quite confusing .It is worthwhile to know and understand these complex terms. Or it can lead to misunderstanding at the time of claiming reimbursement or bills. Such knowledge will also help you to determine whether the plan you have chosen is the right one as well as the exact cost of your plan.

DETUCTIBLE is a very common term used in Health insurance. This simply means the amount of money you will have to render before the insurance company will cover expenses. This sum is renewed annually when your insurance is renewed routinely. Read your policy carefully.

Individual and Family policies have deductibles with different amounts. Several services and items (like regular check ups and prescriptions) may not be included in the deductibles.

CO-INSURANCE or CO-PAYMENTS or CO-PAYS all mean the same. This is the money you will have to pay apart from the deductible. This may include the doctor's fees or the charges for prescriptions. The amount is generally small.

OUT-OF-POCKET MAXIMUM refers to the amount you have to pay that is not covered by your health policy. This refers to all co-payments, co-insurance and other items not covered by the policy. Usually the company will charge the maximum amount to be paid annually .Premiums are not integrated in this amount.

LIFETIME MAXIMUM is the total sum your health insurance company will give over your entire lifetime. The lifetime maximum total amounts for individuals and family may vary. Therefore be cautious and read the directions carefully.

GRACE PERIOD is the time given for you to pay your insurance premium before your insurance is cancelled.

EXCLUSIONS refer to the items not covered by the policy. These include cosmetic surgery, comfort items and reproductive issues.

PRE-EXISTING CONDITIONS refer to the diseases you may have suffered and had treatment prior to your acquiring the insurance policy. Some companies may exclude them completely or you may not be covered for those conditions for a specific period of time.

COORDINATION OF SERVICES means when you have two or more sources of coverage for your condition, then the companies will not cover it all. If you and your spouse have health insurance, then the companies will get together and decide how much each company will pay towards your health care.

Such basic knowledge of the health insurance will enable you have a good understanding of the policy and also help to decide which one is most suitable for you.

COBRA,HMO, and PPO

Michigan health insurance companies offer provisional insurance called COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985). This is helpful for those who have lost jobs, out of job or are in between group health insurance. These policies are for a short time maybe six months .However they are expensive. Hence it is wise to spend less time with COBRA. This law permits individuals to continue with their health insurance from their employer for a period of 18 months after termination of employment. Often the coverage is for the whole family. However there is a disadvantage to this coverage. Instead of the employer, you will have to bear the cost of the entire premium. This amount will be quite high. Hence it would be wise to check the cost of the policy offered by private companies.

COBRA will also come to aid when your new employer will not be able to provide coverage for the interlude of employment or probationary period.

HMO (Health Maintenance Organization)

HMO is a health care plan which is cheaper than PPO plans. It is an association of health care providers (doctors and hospitals) who have contractual relations with an insurance company to proffer services at fixed rates.

This plan has lots of rules and regulations. It is mandatory that you select a primary health care physician who will take care of your health care. But this primary health care physician must be a member of the HMO. If you need to consult a specialist you will have to take recommendation from the primary health care physician.

The attractive feature of HMO is that it is cheaper than the other plans. Premiums are low and co-payments are either less or free. HMOs are more of profit making business. Hence doctors are required to treat as many patients as possible and thus minimize costs of the organization.

PPOs

PPO (Preferred Provider Organization) also has contractual ties with insurance companies. But PPOs do not have many rules and restrictions. But they are more expensive than HMOs.

If you desire to consult specialists who are not included in the plan, you are free to do so without any referrals. However you will have to pay more out-of-pocket. Due to such flexibility people prefer PPO to HMO.

Family Health Insurance

Taking care of the entire family's medical needs can be expensive. The most cost effective method is to go for a Family Health Insurance. Whether your employer offers you a Family Health Insurance or you buy individually, make sure you opt for one which will meet your familys needs. Such insurance will save you from the tension of immediate payment of medical bills. It will also give mental peace.

A lot of people acquire their family health insurance through their employer, which is indeed the most money saving way.

This is usually cheaper as it is provided through a group plan. Even then you must evaluate what kind of family insurance is best for you.

Do you want an HMO or PPO

Do you want the freedom to choose your specialist or doctor without referrals

Do you want to save money on your premium every month by increasing the deductible

If you are purchasing the insurance individually your options double. You will have to hunt for one:

That will suit your pocket

Has sufficient amount of coverage for your familys requirement.

Offers good costumer service.

Is financially sound so that you will have no hassles at the time of reimbursement.

Make a good assessment of the market and opt for one that suits your requirement. After all you cannot take chances.

Your family's welfare and health are of vital importance. Simultaneously you must also get the value for your money.