An individual health insurance policy, like any other health insurance policy, is a binding contract between the insurance provider (company) and an individual or a group. It is usually in written form, formal, and it embodies the terms and stipulations of the two parties.

The insurer (or the insurance company) will pay or reimburse medical expenses for specific health-related conditions, covered by the health insurance plan. The insured (be it an individual or a group) will in turn pay premiums that the insurance company charges.

Individual health insurance policies may contain blank spaces, wherein it can be filled up with words, clauses, phrases, rider or any other word that will form part of the policy.

Before the policy is given to the insured, he must adhere to such stipulations set by the insurance company.

The insured should therefore make no concealments of any pertinent information which may be needed or is deemed important to the making of the health insurance policy. This information may refer to the physical health condition of the applicant, for example if the applicant has a pre-existing condition. Health insurance providers have different rules/regulations for such pre-existing condition.

That is why the insured should be honest unless he wants his application to be denied. The contract will no longer be binding if after acquiring the health insurance policy, the insurer found out about what the person concealed.

Individual health insurance policies are much more expensive than the group health insurance policy.

In an individual health insurance policy, the risks may not be possibly spread which makes it more costly, and so premiums being paid by the insured or the individual is much higher. So before choosing a health insurance policy, compare the benefits with the downsides of the different types of health insurance policies.

In purchasing an individual health insurance policy, you will have to choose between a managed healthcare plan and the fee-for-service health insurance policy. Most policies have customizations or choices like discount plans, co-insurance, etc.

Be sure to keep in mind these four parameters while you choose your health insurance policy: 1. affordability of premiums; 2. benefits of the plan; 3.

the extent of the coverage; and 4. premium competitiveness.

So now, you have your individual health insurance policy.

But what does it actually mean? A lot of people purchase health insurance policies and after that, they just leave with no questions asked at all. It is very important to understand your individual health insurance policy, and what it actually covers. Don’t wait until such time that you’re to get your insurance claim only to find out that you’re not covered.

Here are some steps to follow to be able to understand your individual health insurance policy:

- Read your individual health insurance policy. Make sure that it contains all the coverage you wanted and actually paid for.

- If you can’t understand your health insurance policy, get help. Don’t just leave after getting your insurance policy. Talk your time to talk with the health insurance agent or company and ask all your questions (especially the ones you don’t understand).

- Ask for the time frame during which you should review the health insurance policy. You can still cancel that policy or get refund if your needs are not met.

- Keep all transaction receipts between you and health insurance agent.

- You can document all your vocal/written statements between you and the health insurance agent. This may be used when filing for insurance claims.

Ignorance is no excuse. Take time to know your individual health insurance policy. It pays to know more than know nothing at all.

Texas is the land where one of the prominent medical centers in the world can be found. The Texas Medical Center is the house of significant research and health care institutions.

With Texas having renowned health care institutions, health insurance companies sprung like mushrooms. Every company aims to sell different kinds of insurance to Texans. Individual health insurance has been a common procurement.

Health insurance companies in Texas are categorized into two major components: (1) Fee-for-Service and (2) Managed Care Health Plans.

Fee-for-Service

Fee-for-service is considered a conventional way of obtaining health insurance plans. You will be the one who will pay for any upfront charges you have incurred during any physician consultation and treatment, hospital visits and other related health services.

You achieve flexibility once you decide to go with fee-for-service plan. You have the right to decide the physician and health care providers that will take care of your health and medical needs.

The drawback under fee-for-service plan is that you will have to separately pay each health section you have undergone.

For instance, you will need to see three independent specialists, and then you have to disburse separate payments for each specialist. By doing so, you are more likely to waste a lot of time and effort since you are the one who personally manage your medical finances.

There are some individuals who find fee-for-service plan more costly compared to managed care health plan.

Others complain of higher premium payment. Moreover, you and your insurance company will be bothered by tons of paper works to accomplish.

Managed Care Health Plans

Most of your health services and medical finances are being administered by a managed care health plan.

The managed care health plan has pool of health care providers and units for you to select from.

This type of health plan is composed of three major components:

1. Health Maintenance Organization or HMO
2. Preferred Provider Organization or PPO
3. Point-of-Service (POS) Plan

The edge of managed care health plan over fee-for-service is how your health services and medical finances are being supervised and dealt with. Hence, it will be less troublesome on your part.

However, managed care health plan also poses some disadvantages. One important factor is your restriction to choose your own physician and other health care provider. Although you still have an option to choose you own on some components under managed care health plan but you will have to pay a higher price for that.

Lately, there has also been a debate about managed care health plans. There were medical surveys which points out that due to its affordability, some managed care health companies do not meet the required standard on giving its consumers the best health consultation and treatment.

You have two options – fee-for-service or managed care health plan – all you need to do is weigh the pros and cons each plan will bring into your life. Your health insurance company can give detailed information on your preferred option. Additionally, you may also seek the advice of your close friends or relatives who have purchased an individual health insurance. Before you arrive at a final decision you may consider some things such as:
. Finances
. Lifestyle
. Health and Medical condition

You are in a place where you can get utmost health and medical attention; all you need to do is choose which suits you well.