Health Insurance
Health insurance basically buys you full or partial protection against medical expenses for which one pays according to the type of the insurance plan purchased or subscribed to. Just like the companies providing any other kind of insurance, health insurance companies also depend on the subscriptions received from a large number of people while having to pay for only a fraction of the number of total subscribers.
Health insurance rates have been increasing consistently and the health insurance plans have been becoming more and more complex. Health insurance is also the costliest and one that affects almost every family. The way many European nations provide health care is different than what is available in the United States.
Health care in the US is paid by several different sources, which makes the health insurance so complex. A doctors visit is paid in part by the patient and part by the insurance company. The health insurance is paid off part by the patient and by the employer providing the health benefits to the patient or to the patient's family. Then there are government subsidies involved. No wonder, this all makes the health insurance system so complex and as a result there are many different health insurance rates.
Who needs health insurance?
The simple answer is – everyone. Even though one might be absolutely healthy, accidents can never be predicted. Most hospitals may not provide more than just emergency services if one does not have health insurance or makes payment before starting the treatment. Health care costs in the US can run into thousands of dollars for treatments for even minor accidents. Such unexpected expenses can potentially ruin the family's financial condition. Even though health insurance is not cheap, at least today, it is worth having it to keep our family members safe and healthy.
The stark reality is that today there are hundreds of thousands of people who cannot afford health insurance and as a result they forgo important health checkup and even medical treatments just so that they may feed their children or keep a roof to live under.
Types of Health Insurance
There are commonly two broad types of health insurances – group health insurance and individual health insurance.
If you are employed, your employer buys a group insurance from a health insurance providers. You as employees are offered that group health insurance benefits as part of the employment benefits where the employer pays a part of the premium. In some cases, the organization or the employer may not pay any part of the premium but you can get a premium that is lower than an individual health insurance premium because you are a member of a large group that has bought the insurance from an insurance company.
Individual health insurance plans are bought directly by you from the insurance company for yourself and your family. Since no employer is involved in this case, you are also responsible for the entire insurance premium to be paid. This makes the individual health insurance plans have a higher premium than group health insurance plans. People who are self employed often buy their own individual health insurance.
What does health insurance cover?
Health insurance coverage depends on the types of the health insurance plan you purchase. Generally, a health insurance covers the following:
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Hospital expenses
Room and board costs
Hospital services and supplies
Operating room charges
Nursing services charges
Laboratory charges, X ray charges
Ambulance service
Outpatient service charges
2. Physicians charges
Doctor visits
Tests performed at the doctor's office