Have you ever made the mistake of Googling, I need help with health insurance, putting your name and number in, and then all of a sudden having your phone blow up over the next five minutes with like nine million people calling you from all over the country.
Have you ever made the mistake of Googling, I need help with health insurance, putting your name and number in, and then all of a sudden having your phone blow up over the next five minutes with like nine million people calling you from all over the country. And they all have ways of sounding like they're offering benefits that nobody else has seen before and that are way too good to be true. For example, oh hello Mr. Customer, I'm looking at my screen here and I notice in your area we've got a, oh my gosh, we've got a private PPO plan.
Oh my goodness, it's a PPO plan. Wow, you don't see those very much anymore. And it's a private PPO, my goodness, it's got no deductible to it. In fact, it covers hospital stays, surgeries, doctor visits, pays from the very first dollar.
And for you and your family of five, wow, let me put in the numbers, holy smokes, it's only $327 a month, isn't that a good deal? Now of course that sounds like a great deal because what I just did is I used some industry buzzwords to create a false sense of value and actually sold you a pile of junk over the phone. I used the term PPO and most of you familiar with health insurance understand that PPO plans allow you to go to a lot of different doctors and hospitals, which is of a great benefit. But I hooked you with that term PPO.
And then I used the term no deductible. Now in all transparency, a deductible is simply the amount of money that you have to spend out of your pocket before the benefits kick in. So I wasn't incorrect in telling you there was no deductible but instead what I'm not telling you is that this no deductible plan is not a traditional health insurance product. In fact, it has nothing to do with what the actual bill is at the hospital or the doctor's office.
What I've sold you is a fixed indemnity product, a plan that simply pays a set amount of money depending on the service you receive. For example, maybe this plan with a no deductible and a PPO network just simply pays $4,000 per day here in the hospital. It pays it from the very first dollar. So what I told you is technically correct.
But what I didn't tell you is if you're in the hospital for three days and rack up $50,000 worth of bills, your $4,000 a day hospital indemnity policy is only gonna pay 12,000. So guess who's stuck paying the other $38,000 between what the bill was and what the insurance paid. You gotta take health insurance ads with a grain of salt. And if it sounds too good to be true and it's done quickly and over the phone, you're probably making a wrong decision because health insurance is a complicated topic.
It's one that really requires a 90 to two hour conversation with an expert guide that can help you and your family understand how the system works so that you can make a good informed decision for you and your family. And if you don't do it that way, many times you find out the hard way when you go use it. And oftentimes by then it's too late to protect the assets that you've worked so hard to create your life. So be wary of the health insurance scammers and the ads that are out there that sound too good to be true.
Instead, find a local expert guide to walk you through the system.
If you Google for help with health insurance and enter your name and number, you might receive numerous calls from various companies trying to sell you plans that sound too good to be true.
While terms like 'PPO' and 'no deductible' may sound appealing, they can be misleading. A 'no deductible' plan might not be a traditional health insurance product and could actually be a fixed indemnity product that pays only a set amount for services.
A fixed indemnity product pays a predetermined amount depending on the service you receive, rather than covering the actual costs of medical bills. For instance, it might pay $4,000 per day for hospital stays, but if your hospital bill is $50,000, you would still be responsible for the remaining amount.
It's important to take health insurance ads with skepticism and to have a thorough conversation with an expert. Health insurance is complex and requires a detailed discussion to help you understand the options available to you and your family.
Talk to a real person.