7 Important Health Insurance Terms You Need to Know
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Everything is expensive in Hong Kong, and private healthcare service is no exception. In order to offset the exorbitant healthcare costs, private health insurance is required.
We are glad to have our friends at Pacific Prime to cover the 7 important health insurance terms you need to be familiar with to aid you in securing private health insurance.
Premium
Premium is one of the most important terms as it refers to the cost of your insurance plan. Typically when you receive a quote for an insurance plan, you are given an annual or a semi-annual premium. Depending on the insurer, you are also given payment date options. These can range from being monthly to biannually, or even yearly.
Underwriting
Underwriting is the process in which an insurer will review the insurance applicant's health and medical information to determine if they will extend coverage to the applicant and if any exclusions will be attached. This process will also determine the final premium costs.
Riders
A rider is an amendment or modification that can be added to your health insurance policy for more coverage. These often result in higher premium costs.
Deductible and Copays
Deductibles and copays are options that directly affect your premium costs. A deductible is the amount of money you need to pay before your health insurance coverage kicks in. Your deductible amount is usually on an annual basis.
A copay is the amount you must pay each time you use a covered healthcare service. For example, if you have a copay of HKD 100, then each time you use a covered service you will need to cover the first HKD 100 before your insurer offsets the rest.
Good Faith Estimate
A good faith estimate (GFE) is a cost estimate provided by a healthcare provider for the anticipated expenses of a service or item. An example of when a GFE is used is when you need a service from an out of network provider. You will typically be required to present a GFE for the treatment or service to be approved for coverage.
Exclusions
Exclusions, much like the name suggests, are any medical care that the insurer will not provide cover for. A common exclusion is pre-existing conditions.
Moratorium
A moratorium is also commonly called a “waiting period”. They are a set period where the policy holder cannot submit a claim for specific medical conditions. Moratoriums are commonly seen in maternity insurance.
Simplify Your Insurance Journey with Pacific Prime
Whether you are looking for a new insurance plan or need to reassess whether your current plan is still providing you with the right coverage, Pacific Prime can help you! With over two decades in the industry, our expert advisors can help you find a plan that suits your needs and requirements.
Contact us today for a free quote and plan comparison!