Definition of Affordable Health Insurance
Health insurance is an important part of society, as it helps ensure that individuals can receive the health care they need. Many health insurance providers claim to offer affordable insurance options; however, the definition of affordable health insurance changes with each individual.
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Identification
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According to Law.FreeAdvice.com, health insurance is an agreement from an insurance company or health plan that the company will pay for health care services in exchange for payments from their policyholders. An affordable health insurance plan will have premium payments that are within the policyholder's financial limits.
Considerations
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The true meaning of an "affordable health insurance plan" differs with each person, depending on his specific financial limits. An individual must find a health insurance plan with premium payments that agree with his financial situation.
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Average Cost
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According to USA Today, the average individual spent $4,824 for a health insurance policy in 2009, while the average family spent $13,375 for a family policy. The article also pointed out that health insurance premiums rose 131 percent from 1999 to 2009, and this trend is expected to continue.
Types
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According to the California Medical Association, the five basic types of health plans are: traditional insurance, preferred provider organizations (PPO), health maintenance organizations (HMO), point-of-service plans (POS) and exclusive provider organizations (EPO). Although some of these insurance plans are significantly more affordable than others, they typically provide significantly less coverage.
Warning
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When shopping for health insurance, affordability should not be the only factor considered. Although an individual must find a plan within his financial limits, it is also important to select a plan that provides adequate coverage. Purchasing a plan that does not provide enough coverage may end up costing more in the long run, as the individual will be required to pay for certain medical services out-of-pocket.
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References
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