Health Insurance has become one of the most common types of insurance throughout the years. It has become so popular that it is even thought in primary schools. There is no insurance topic you can discuss without mentioning health insurance. As you all know by now, insurance is broken into different parts. This different part is where our topic originates from. Insurance is a general word for all kinds of insurance. I am assuring you that after reading this post, you would know what health insurance is all about.
What really is health insurance? Health Insurance is a type of insurance that provides coverage for your health expenses. This coverage can be for medical, surgical, and sometimes even dental expenses caused by the insured. This kind of insurance can reimburse the insured for expenses that are incurred from illness and injury. They could also pay the care provider directly. This kind of insurance is often added to employer benefit packages. This is just to entice quality employees.
How Health Insurance Works
Health insurance can work in different ways. It can be very tricky to navigate for some people. A managed insurance plan requires the policyholder to receive care from a group of designated healthcare providers to get the highest coverage. If the patients are seeking care outside the network, they may have to pay a higher percentage for the cost. The insurance company might even refuse payment outside the network.
When talking about insurance in the health sector, we cannot escape the ACA (Affordable Care Act). The Patient Protection and Affordable Care Act was signed into law in the year 2010 by Barack Obama. This prohibited insurance companies from denying coverage to any patient with pre-existing conditions. This same plan also allows children to stay on their parent’s insurance plans until the age of twenty-six.
Why You Need Health Insurance
Like I said earlier, health insurance provides coverage for medical expenses such as illness, injuries, and conditions. Why do you need this kind of insurance? Well, here are some reasons.
- Accidents are unplanned for. This basically means an accident can happen at any time and any day.
- Medical expenses can be very high sometimes. They are one of the major causes of bankruptcy.
- You can use insurance to keep track and pay your medical expenses easily and quickly.
- To safeguard your way of life and both financial and physical well-being.
Those are some reasons why you should consider insurance.
Health Insurance Terms
You may not know this but health insurance has its own language with different terms. These terms include deductibles, coinsurance, and copayments. The copayment can also be shortened to a copay. Let us explain these terms.
- Deductible: Deductible is an amount you have to pay towards your medical bills each year before your insurance company would start paying it.
- Premium: Premium is a certain amount you have to pay your health insurance company to keep your coverage status active. A lot of people prefer paying this premium monthly.
- Coinsurance: Coinsurance is the percentage of your medical bill that you share with your insurance company after you’ve paid the deductible. Please do not confuse this with the deductible. Without a policy that pays a hundred percent for everything, you must pay a coinsurance amount.
- Copayment: Copayment also known as copay is a flat fee that you pay whenever you go to the doctor or fill a prescription. It is usually a small amount and does not count towards your deductible.
Those are some of the terms of health insurance.