Understanding Health Insurance in 2017

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No one, anywhere, ever wants to get sick or get hurt. But that doesn’t mean that it is never going to happen. Even those who eat extremely healthy and exercise on a regular basis still suffer like the rest of us and get the flu, or have an accident where they become injured. This is why it is so important to have health insurance because you are protected against large medical bills that could arise at any moment.

Defining Health Insurance

Health insurance is a plan that covers medical bills that you incur, including doctor visits and surgeries that you many need. Depending on the type of health insurance that you have will depend on how you pay for the services that you receive.

You might have to pay for the services out of pocket and then wait for the insurance company to reimburse you the money, or, the company could pay the entire bill and then you will have to make payments back to them to repay what they do not cover.

But no everyone has health insurance. In some countries, like the United Kingdom, health insurance is viewed as a fundamental human right and is given to every single one of their citizens. It is seen the same as the police, firefighters and public education – something that everyone is entitled to. While here in the United States we have taken a different approach to providing health care to our citizens. The U.S. has the viewpoint that it is your responsibility to carry your own health insurance.

Obama signing the Affordable Health Care ActMedical Coverage Laws

The laws surrounding health insurance have changed a lot since the beginning of the Obama administration, where his goal was to make sure that every person was offered affordable health care. No one should have to worry about how they are going to be able to afford to pay for medical treatment that they desperately need. Nor should they have to stress about the cost of getting better when they need rest. And they should be able to afford to take the medicine that they need to get better without having to make difficult decisions like whether or not they are going to have enough money for food or to pay their rent.

And because of some of the laws that the Obama administration was able to put into place, insurance companies are no longer allowed to cut patients off of medical care because they have reached their lifetime limit on services. Nor are they allowed to deny coverage to someone who has an existing issue, or charge them extra because of that.

No one ever wants to get sick, or worse, get hurt. We all want to make sure that we are healthy, and able to do the things that we want and need to do. But that isn’t always the case, and that is where having health insurance comes in handy. If you’ve got the flu and need to be seen, you can do that without paying an arm and a leg for a visit. Health insurance is an important part of how we keep ourselves healthy and keep us from being buried in medical debt when we do get hurt or sick.

What Is Health Insurance?

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Insurance, in general, refers to protection from monetary loss. An individual or firm will get coverage through a contract with an insurance company. In return for monthly/annual payments, you will be assured of financial reimbursement by your insurer if you incur financial loss. Health insurance, then, is a type of coverage that caters to costs incurred through health care.

Family medical insuranceWhat Does It Cover?

It is worth noting that health coverage doesn’t just cover medical procedures. Depending on what plan you settle for, your coverage could also include outpatient care, post maternal care, preventive services, prescription drugs, vision, dental, travel, life cover, and disability.

Types of Health Insurance

Medical coverage can be broadly grouped into private and public health coverage.

1.  Public health insurance is typically run by the national government or some form of local authority. The premiums for public health insurance are lower than most private owned insurers.
2. Private health insurance could be individual, family, children’s, joint or (employer’s)group coverage. This type of insurance is provided financially for profit; they have little to no affiliation with the government or its plans. Individual coverage is the most common type of insurance. It is underwritten to cover one individual’s medical care needs. Family Private Medical protection covers members of a family, usually at a discount. Children’s insurance is underwritten to cover children’s medical care needs. Joint private medical protection covers two policyholders at the price of one. It is ideal for couples or friends looking to cut costs. Employer’s group private insurance is usually provided by your employer (though not compulsory) as an employment benefit. Employers can get discounts from insurers as they register many policyholders at a go.Each of the stated examples has their different plans and descriptions depending on the institution you choose to work with.

Health Insurance Plans

Health insurance thru employers• Health maintenance organization
This plan only provides medical cover through healthcare specialists. The policyholder does not pay directly for services to healthcare providers. Instead, your insurer pays a set premium to medical providers in its HMO network. Some services require copayments. For example, if your doctor’s visit costs $200, you’d be needed to pay a fixed amount of $30 while your insurer will foot the rest of the bill.

• Indemnity plans
The policyholder is free to visit any doctor of their choice. After the procedure, the doctor or health center will then seek reimbursement from your insurer. The insurer pays for at least 80 percent of the bill while the policyholder is expected to foot the remaining 20 percent in a system called coinsurance.

• Preferred provider organization(PPO)
The insurer puts together its preferred pricing and invites health care providers willing to work for those prices to join the PPOs network of vendors. The policyholder is free to seek health care within members of the network.

Conclusion

The greatest benefit of any medical insurance plan is that it lowers the cost of accessing regular health care and reduces the load that comes with emergency medical operations.It also gives one peace of mind when unplanned medical emergencies occur.