Everyone needs quality health insurance coverage. When do you need it? Before you have an accident, become ill or get pregnant. Insurance only covers health issues that happen after the policy begins. For example, if you are pregnant before the policy is issued, the plan benefits will not apply to your pregnancy costs.

Finding the right coverage for your family is a daunting task. By knowing the basics of health insurance, you can make the right decision.

Health insurance is not a right

Your employer does not have to provide you with health insurance. It isn't required by law, and many employers are unable to afford it with rising premium costs. Don't simply assume that when you find a job, you will find insurance. Many employers offer it, but many do not.

If you are lucky enough to have benefits through your employer, when you quit or lose your job, the coverage will end. Don't expect to find new coverage for the same price. And don't expect your former employer to insure you for a single day over your last day on the job. They aren't going to give you any free insurance.

If you leave a job that has health insurance, you can apply for COBRA. COBRA stands for Consolidated Omnibus Reconciliation Act. It is a federal plan that can provide you with a short-term health insurance. You may qualify for HIPAA, which stands for Health Insurance Portability and Accountability Act. Make sure you talk with your human relations department about your insurance options after leaving work.

Health insurance is expensive

Individual health insurance is quite expensive. With a group plan, the costs and risks are spread evenly among many people. With an individual plan, you health policies are dependent on your personal health history. Pre-existing conditions can boost your premiums. Expensive medical claims can raise your premiums, as well.

You may find that it is often difficult to find health insurance if you have several pre-existing medical conditions. However, some states require that individual health insurers offer everyone a plan, known as "guaranteed issue."

Health insurance is always going up

Your premiums are not fixed for the life of your policy. Health insurance companies are always raising premiums to cover the rising cost of health care. Some heath insurers only have to notify you of the increase and then begin charging you more money. State insurance regulators do watch to see that rates are not excessive.

Even if you have group health insurance, your rates could climb. Even if you haven't personally had any claims, the group in whole could have experienced an increase in claims - causing everyone's rates to increase.

If you can't afford insurance

If you are a college student and unable to afford individual coverage, you should check with your school. Many universities offer reasonable health insurance.

No matter how old you are, there are several federally sponsored insurance programs that help you with individual health insurance coverage.

Medicare is a health insurance program for those 65 and older, young disabled persons and people with end-stage renal disease. Medicaid is a program for low income individuals. The Children's Health Insurance Program (CHIP) provides health care to children whose parents do not qualify for Medicaid, yet still cannot afford individual health insurance.

Many states offer health care plans for children whose parents cannot afford health insurance. Some states have plans that cover expectant mothers and parents as well.

Low-income families are encouraged to sign up for low income health insurance programs. They provide thousands of families with high-quality health care at no impact to the financial situations of the families.

Understanding health insurance lingo

There are so many key words and phrases in insurance. It can be difficult to understand what is and isn't being said. There are many different health insurance plans, including fee-for-service plans (FFS), health maintenance organizations (HMOs), point of service plans (POS) and preferred provider organizations (PPOs). Each plan has its own advantages and disadvantages that must be considered when shopping for health insurance.

Fee-for-service plans

Fee-for-service plans (FFS) are often referred to as traditional indemnity health insurance. They offer flexibility, but come with high out-of-pocket costs, more paperwork and higher premiums.

With an FFS plan, you can choose your own doctors and hospitals. You may also visit specialists without having a referral from a primary care physician.

The deductible on a FFS may run between $500 and $1,500, or higher. You usually have to meet the deductible before the insurance company pays any claims. After your deductible is met, doctors are reimbursed for 80% of the bill, while you pay the remaining 20%.

You may be required to pay for the medical services up front, submitting your paperwork for reimbursement later. Most FFS plans will only pay for "reasonable and customary" medical expenses. If your doctor is more expensive than others in your area, you will make up the cost personally.

Finding the right individual health insurance plan

When looking for a health care plan, the key is to shop around. Start with your local insurance agents or companies. An agent should be able to provide you with information about insurance companies that provide individual coverage in your state.

Captive agents work for one insurance company. Independent agents can sell policies for a variety of different insurance companies. A list of agents is available through your yellow pages or through the state department of insurance.

Discuss with the agent your health insurance needs. Do you need insurance for your entire family, or just yourself? Do you want to choose your doctor? If you are over 65, do you need Medicare supplemental insurance? Do you need long-term disability and long-term care coverage? What can you afford?

When you have chosen the proper coverage for your needs, you will fill out an application through the agent. Be honest in disclosing your medical history. Report all of your health problems to your agent. If you think something is insignificant, let the agent make that call. If any of your health information is false or incomplete, the company could refuse to pay future claims and cancel your policy.