With all the noise going on about the 2010 Patient Protection & Affordable Care Act or “Obama-care,” as most conservatives would like to call it; I have come up with some useful knowledge about health insurance that we all need to know about. First and foremost, if you are employed and have the opportunity to get coverage, take it; if you are like me, then this information will come in handy.

I am a 26 year old, full-time student who needs health insurance coverage but I fall into what I call the “black hole.” Fulltime professional student, unemployed and I just hit the 26-year-old age limit, where one is no longer covered by their parent’s health insurance policy. Some might say forget it, I don’t need health insurance coverage anyway. The funny thing is it costs more to not have insurance than to get coverage. A major illness can be financially devastating with health insurance, now imagine not having coverage. It’s always better to be safe than sorry. So here is some information on health insurance that I feel people should know:

There are 2 main types of Health Insurance models in the United States, managed & indemnity care.
Managed care plans are health insurance plans that contract with health care providers and medical facilities to provide care for members at reduced costs. These providers make up the plan’s network. How much you are covered depends on the network’s rules.

There are three types of managed care plans:

• Health Maintenance Organizations (HMO) usually only pay for care within the network. You choose a primary care doctor who coordinates most of your care.
• Preferred Provider Organizations (PPO) usually pay more if you get care within the network, but they still pay a portion if you go outside.
• Point of Service (POS) plans let you choose between an HMO and a PPO each time you need care.

Indemnity care or “Fee for Service” plans are health insurance plans whereby you get to chose your own healthcare provider, hospital & pharmacy. Indemnity care is limited in that it covers only illness or accidents. It doesn’t cover preventive care, like flu shots or contraceptives. You will have to pay a minimum deductible, up to a couple of thousand dollars before the coverage kicks in. But with Indemnity care you have greater flexibility than managed care.

You will have to pay a small portion of the bill each time you have to go and get healthcare services, called a co-pay. Usually the co-pay is about 20% then the insurance company picks up the 80% left.When shopping for insurance be sure to note the healthcare services that you will need and what percentage of it is being covered so that you are not paying ridiculous premiums. Watch out for loopholes, like limited prescription, dental and eye coverage’s.