Medical Insurance and Different Types of Coverage
ENG101: Effective Essay Writing
Instructor: Terri McComb
April 2nd, 2014

Outline
I. Introduction
II. Premium costs
A. Annual costs
B. Monthly costs
C. Costs up front
III. Prescription Costs
A. Name Brand
B. Generic
C. Co-Pays
IV. Emergency Room Co-Pay
A. Convenience
B. Denying Payment
V. Conclusion

Are you aware that many Americans do not have medical insurance coverage? The recent passing of the Affordable Care Act, mandates that Americans must have an insurance policy that provides minimum essential coverage. Because of this, many Americans have been looking into different types of healthcare coverage. Insurance companies can tailor a customer’s health insurance plan so that it meets their specific health needs, and budget. Good coverage, however, does not come cheap. The customer will typically get what they pay for. Many different types of healthcare insurance offer different types of coverage, such as premium cost, prescription costs, and co-pays for emergency visits.
PREMIUM COSTS
When a person choses a health insurance plan, they have to pay a premium cost. Premium costs are the amount of money charged by your insurance provider for your insurance plan. These costs can be paid in a number of different ways. Most people can pay these costs either annually or monthly. This would depend on what payment options the insurance company offers. Annual premiums are the amount total amount that must be paid every year on the date that the policy begins. Annual premiums are sometimes also known as single premiums, because you only pay it once a year for the policy. This option may be good for customers who are able to afford a large, lump sum cost. The annual premium cost is different for either single person coverage or family coverage. According to an NBC News report, in 2013 “Premiums for the average family plan topped $16,000 for the first time” (Appleby, 2013). That same report also included the 2013 average for single person plans “The average cost of a single employee’s insurance premiums rose 5 percent, to $5,884” (Appleby, 2013). The other option to pay for health insurance is Monthly Premium costs. With monthly premiums, a customer will pay a monthly bill for their insurance. The bill must be paid on time, or the customer may risk having a lapse in coverage, meaning they may be without insurance. Again, the costs differ depending on whether the policy is for a single person, or a family. “The average cost of health insurance in the United States is approximately $411 per month for individual coverage and approximately $1155 per month for family coverage” ("How Much Is Average Health Insurance per Month?”, n.d.). As you can see, monthly premium costs can also become expensive. Premium costs are not the cost associated with health insurance. Healthcare coverage commonly has other annual costs. The most common annual cost is called an annual deductible. It works in the same manner as a deductible for damages to an automobile. Deductibles are paid in addition to the premium cost. You pay the premium cost to keep your insurance coverage, but when you use health care services, you must pay your deductible before your health insurance begins to pay. “The average deductible was $2,086 for a single person and just over $4,000 for a family” (Fuquay, 2013). The costs seem to be piling up, but there is good news: not all health plans have a deductible. On average, if you pay a higher premium, there tends to be little or no deductible. And on the other hand, low premium plans usually have a high deductible. Cost for health insurance coverage can become very expensive when you calculate premium costs and deductibles together.
PRESCRIPTION COSTS There are usually some types of cost that a person must pay when they need prescriptions. These costs can change depending on what pharmacy they get the prescriptions filled at. Recent evidence show that the