What is Health Insurance and do You Really Need it?
There are lots of different kinds of health insurance. Plan that cover medical services and prescription medicines, plans that cover dental expenses, disability insurance that replaces income lost due to extended illness or injury, long-term care, and so on. In the United States, people typically refer to the plans that cover medical expenses as health insurance, and these plans are usually bought by employers and offered to employees as part of their compensation, or benefits.
Health insurance plans are usually sold once, then renewed on an annual basis. So when a consumer buys health insurance (either directly or through an employer), the insurer agrees to pay for health expenses as long as the premiums are paid on time and the account is in good standing.
When considering which health insurance to buy, there are many things to consider. Does the scheme have options for hospital cover, how much do you need to pay before the scheme becomes active and whether medication is considered are among the many things that should be looked at when purchasing health insurance.
While employer-paid health insurance is a nice benefit, the fact is that only about 54% of Americans have that coverage. The rest of those insured either self-insure through individual health plans, or rely on the limited benefits of Medicare or Medicaid. And about 16% of Americans remain completely without health insurance.
Health insurance is a means of sharing the expense of health care with an insurance company. Insurance companies typically offer many different insurance plans to suit the many different needs of people of various ages and degrees of health.
Individual and family insurance plans typically fit into four categories: PPOs, HMOs, POSs and HSAs. They are described in detail below.
Individual health insurance products typically cost one third to one half of group insurance. This price difference is mostly due to medical underwriting, whereby insurance companies can deny or limit coverage based on an applicant’s health status. In addition, individual and family health insurance policies often have high deductibles, limited maternity and limited prescription drug coverage. As you shop for health individual or family health insurance please pay particular attention to these items.
Do I need health insurance?
If you are young and healthy, you may wonder if you really need to have health insurance. After all, if you only see the doctor once a year, you might think it’s not worth it to pay premiums every month.
But yoυ really do need to haνe heаlth insurance. Nο mаtter hoω healthy yοu arө today, yoυ arө onө hospitalization away from a financial disaster that сould affect you for years to cοme. There’s simplү no way of predicting whether you аre going to havө appendicitis οr take a naѕty fall whіle you’re out гock climbing. Life happens, and you need tο be prepared, just in case.
Very simply, so you can pay your medical bills. Assuming you are a normal healthy human being living an accident and illness free existence, you may not require health insurance. The problem is that we live in a high accident rate and virus ridden world and things tend to go wrong. Remember Murphy’s Law?
A single accident resulting in a broken leg or arm can cost you a fortune. You arrive at the hospital and are rushed from one department to another, all checking to make sure you are all right. But each stop costs hundreds. How will you pay? Health insurance guarantees that the bills will be paid.
Health insurance is something you should have. You run the risk of financial ruin without it. Even if you are relatively healthy, if you are involved in a serious accident or suddenly develop appendicitis, you may end up owing tens of thousands of dollars in medical bills before you are done. If your employer covers you, you should take advantage of that plan, if you are self-employed you may want to consider high deductible health insurance as a money saving option.