|Health insurance helps pay for routine doctor visits as well as care for serious illnesses and injuries. Without, you could face huge bills, which makes it an extremely important insurance coverage to have.|
What is it?
A health policy is a type of insurance that helps pay medical bills you incur from illness or injury. It also pays for preventive care to try to ensure you stay healthy.
Who is it for?
Every person should have a health policy. Even people who are very healthy need to have insurance, because you never know when you could be seriously injured or contract a serious illness.
How does it work?
Health insurance works a little bit differently than other types of insurance. With home or auto insurance, for example, the policies work on a per-claim basis. With a health policy, there is a per-claim element, but it also is cumulative. For example, you might have a deductible you have to pay each time you see a doctor or have a procedure, but you also might have co-insurance which is a percentage of the bill you must pay. Co-insurance usually goes away once you have paid a certain maximum amount.
Different types of coverage
There are many different types of health policies. Private policies are those that you get through work, through a broker or through a health exchange. These policies can vary widely. Some have high deductibles in exchange for lower premiums, while others have high premiums but require you to pay much less out of pocket when making claims. There also are government insurance programs that cover certain groups of people. Medicare pays for health care for people 65 and over. Medicaid is a government insurance program for people who meet certain income requirements. It offers free medical coverage. Certain states also run insurance programs that cover children of people too poor to have insurance.
The biggest benefit of having a health policy is that you have protection against expensive medical bills that could be difficult to pay on your own. Another benefit is that health policies are required to pay for preventative care