- Health insurance is coverage for medical care costs that are incurred after being treated by a doctor. More often than not, individuals still have some financial responsibility for their medical costs; however, it is significantly less than it would be without health insurance. The cost for health insurance is paid regularly, either quarterly or monthly.
- There are many different health insurance providers throughout the United States, each offering a number of policies to individuals. However, in terms of finances, there are two types of health insurance, individual or group. Individual health insurance is purchased directly by the insured or through a broker, and may include coverage solely for the insured or the insured's family as well. Group health insurance, on the other hand, is coverage that is provided as a result of an individual's employment. A certain amount is deducted from an employee's paycheck for health insurance. Typically, the employer also contributes to an employee's premium.
- The benefits of health insurance are numerous. The most prominent one is the reduced financial burden for medical care. The cost for medical care is high and may deter people without health insurance from obtaining it unless absolutely necessary. In addition obtaining medical care at a reduced cost, health insurers often provide coverage for preventive care as well. This includes such things as an annual physical exam by your doctor, colonoscopies or a mammography. Also, regardless of one's health, accidents happen. In such instances, having health insurance cushions the blow and removes financially obstacles from prohibiting your recovery.
- Health insurance does not cover all medical costs. For example, most contracts specifically list exclusions from coverage such as cosmetic surgery or alternative medicine. Also, coverage for certain types of treatment may be limited to a specific number of days. For example, physical therapy or treatment for mental health conditions that are not biologically based may be restricted to a certain number of visits per year. Once the limit is met, you are responsible for the full cost of future visits. In addition, if prescriptions are covered, that does not mean all prescriptions are covered. Also, co-payments may be higher for some prescriptions than others.
- When choosing a health insurance provider, check to see if the doctors that you are presently seeing or intend to see accept this insurance. Some insurance companies may only provide coverage for services rendered by providers who accept their plan. If you have coverage for medical care provided by non-participating providers, your out-of-pocket cost may be higher than if you received the same care from a participating provider.
