What is Health Insurance?

health insurance

What is Health Insurance?

July 16, 2015

health insuranceHealth insurance is very important in every family. It helps protect the individual from incurring high risk medical expenses in the event that one get sick or needed medical attentions. Health insurance is defined by the Health Insurance Association of America as a “coverage that provides for the payments of benefits as a result of sickness or injury. It includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment”. The company, which is the insurer, will estimate the overall health risks of the individual together with the system health expenses within the targeted group of individuals. The insurer will develop a routine financial structure like premiums or tax payroll, to make sure that there is always money available for health care benefits in cases the insured needed it, as stipulated in the insurance agreement contracts. A Government entity, private health insurance providers or not-for-profit entity are the central organizations that administers the benefits.

A health protection plan is a contract between the health insurance provider (insurer) and an individual (insured), in which the insurer agrees to pay part of the medical expenses whenever the insured needed it. An evidence of coverage or known as policy is being given to the insured (you) that contains the specific details regarding the health insurance coverage that the company (insurer) agrees to pay. In United States many individuals, get their health coverage through their employers and most of the time the employers pay a part of the premiums, although it is important to note that health protection plan is can be bought and paid by individuals. A person who can meet the required qualifications can qualify Government health coverage like the Medicaid and Medicare.

It’s very essential that in getting your health coverage you got the following benefits.

  1. Application – when you apply , application help is free and available
  1. Outpatient care – a medical care that is provided even if you are not hospitalized, this includes consultation, observation, diagnosis, intervention as well as rehabilitation services.
  1. Preventive care – like vaccines, screenings, as well as check-ups
  1. Inpatient Care – a medical care wherein you condition needs admission to the hospital, especially when the insured is extremely sick or having a severe physical trauma.
  1. Pre-natal and Post-natal care for women
  1. Mental Health – that includes behavioral counselling, health treatment, plus psychotherapy
  1. Services and cares that can really help you recover if you are injured or experiencing disability or chronic disorder. These consist of physical and occupational therapy, psychiatric rehabilitation, speech-language pathology, and more.
  1. Pre-existing illness –even if you have pre-existing conditions they will not deny your applications
  1. They provide explanations of your plan and benefits with no hidden costs. All explanation should be easy to understand.
  1. Wide Scope of Coverage – the plan should cover important remunerations, like doctor appointments, hospitalizations, prescriptions, and many more.

Do not think that because you are healthy and vigorous now, you don’t need health insurance coverage. Family history plays a big part in your health and it can make you vulnerable to same illness they maybe experiencing. So, be wise and smart, get health protection now than be sorry later.