Understanding Health Insurance in Virginia

Health insurance remains one of the most talked about topics when it comes to products that are indispensable for residents of Virginia. With continued increase in healthcare costs, the importance of health insurance plans keeps increasing.

It goes without saying that residents of Virginia without insurance coverage are at a greater risk of experiencing financial insecurity during illness or injury. No doubt health insurance plans involve costs but affordable health policies are easily available and with the implementation of healthcare reforms, lots of options will be available to the Virginians.

Traditional indemnity insurance plans in Virginia

Traditionally, indemnity health insurance plans in Virginia offer reimbursement against the claims made by an insured person. The level of coverage provided by these plans could vary from basic to comprehensive depending upon the needs of the insured person. Accordingly, the costs of the health plans vary-premiums, deductibles, copays and coinsurance, etc.

Managed health care plans in Virginia

Unlike indemnity health plans, managed care health insurance plans involve a group of medical providers that offer comprehensive medical services. They are called preferred or participating providers.

There are basically three managed care options:

• Health Maintenance Organization or HMO

HMOs allow the insured person to select a primary care physician from the plan’s list of medical service providers. If it is necessary, the primary care physician will refer the insured person to a specialist.

• Preferred Provider Organization or PPO

PPOs allow the members to avail large medical care network. At a slightly higher cost, a PPO generally allows its members to receive care outside its network of providers

• Point of Service feature or POS

POS medical plans are special types of HMOs that allow the members to select a non-network provider at a slightly higher cost.

Impact of the Affordable Care Act of health insurance in Virginia

• Around 109,000 small businesses in Virginia will be helped with tax credit.

• Medicare beneficiaries will be mailed a check automatically to defray the costs of their prescription drugs.

• Early retirees would be provided options for reinsurance.

• $113 million federal dollars will be made available to Virginia starting July 1 to provide coverage for people with pre-existing conditions.

• With the new Act, Virginia enjoys the option of Federal Medicaid funding for coverage for all low-income populations, irrespective of age, disability, or family status, for the very first time.