Health insurance is a contract between you and an insurance provider; typically private or public plans offered as employee benefits. In return for paying a monthly premium, they agree to cover a portion of any medical costs should illness or injury occur.
Health insurance has been linked with improved health outcomes, including higher rates of screening and treatment of chronic illnesses. Unfortunately, however, many Americans remain without coverage.
Health insurance is a contract between you and an insurance company.
Health insurance allows you and an insurance provider (commonly referred to as a payor) to share in the costs associated with medical treatments, thereby spreading risk across more people and protecting all parties involved from expensive treatment that would otherwise be unaffordable.
Most plans contain deductible, co-insurance and co-pay costs that represent your out of pocket expenses for services received. While these expenses may seem low at first, they can quickly add up when receiving multiple services at once.
Some individuals choose higher deductible and lower monthly costs because they tend to remain healthy most of the time, yet without healthcare coverage it could become difficult to make ends meet if illness strikes.
It helps you stay healthy.
No matter your age or health status, health insurance has something for everyone. From free preventive care and prescription discounts to discounted generic medicines.
A key advantage is protecting you and your family against unexpected medical expenses, particularly for people who have preexisting conditions such as diabetes, high blood pressure or heart disease.
Dependent upon the circumstances of your employment or individual plan purchase, health insurance may either come through an employer plan or purchased individually. While states regulate health insurance businesses with some federal laws also applying, it’s a good idea to understand all of its complexities prior to becoming bill paying zombie. Using online comparison shops or consulting an experienced professional may help you weigh your options and find the best possible plan that fits you and your family best.
It helps you get the care you need.
Health insurance provides protection from the rising costs associated with medical care. You pay a monthly premium and most of your health bills up to their specified limits will be covered by the insurer. Your out-of-pocket costs could include deductibles, copays and coinsurance (see definitions below).
Health insurance can help protect you financially when seeking medical treatment, but it’s essential to know what you are getting into before purchasing coverage. There are various strategies for making the most out of your policy such as using preventive care services and enrolling in well-being programs to receive discounts on products and services related to medicine and health. You should ensure your policy fits with your lifestyle, family size and medical history – making sure no-claim bonuses, value added benefits and special features (such as maternity coverage) are taken advantage of as much as possible before investing in coverage.
It helps you avoid financial ruin.
If you or a member of your family needs medical treatment for an existing health condition, is diagnosed with an illness, or is involved in an accident, medical expenses can quickly add up and are usually beyond the means of people without health insurance coverage.
Health care and insurance work together to protect you financially. They do this by connecting you to regular sources of care, helping prevent and manage illnesses, decreasing accidents and emergencies risks and decreasing out-of-pocket healthcare expenses.
Dependent upon your plan, depending on its requirements you may have to pay an annual deductible before insurance covers medical costs for you. Copays and coinsurances will then need to be made for certain services like doctor visits and prescriptions – though these costs can add up over time they save huge debts which would otherwise arise without health coverage; without it a serious illness or injury diagnosis could incur thousands in expenses that you simply can’t afford!
