Health Insurance Explained
To say that you fully understand how the health insurance system works in the United States of America would be an overstatement, at least. With its policies, regulations and everything in between, understanding this system is like understanding Mathematics, Physics or Science, and we all know that these are not subjects one can easily and fully understand.
In this article, we will try to shed some light over this topic and explain, as simple as it can get, how the health insurance system really works.
Do I Need Health Insurance?
Unless you’re part of that one percent of the world’s population who has so much money that it doesn’t know what to do with, unless you’re over 65 and qualify for Medicare or very poor and qualify for Medicaid, then you need health insurance more than you need air.
The costs for health care in the United States of America can reach astronomical figures and the only way to afford medical aid without going bankrupt is by purchasing a health insurance plan.
Unlike other types of insurance available on the market, health insurance should be on top of everyone’s lists. If your uninsured car gets damaged, worry not, you can still use the public transportation system until you gather enough money to pay for its repairs.
However, this cannot be said about a broken bone, for example, which will not wait for you to find money to “fix it”.
What Are the Options?
Now that we’ve established that you need health insurance, it’s time to see how it actually works. First of all, you need to know that there are many options in choosing your health care plan and the costs can vary.
The most common would be the monthly insurance for which, just like the name says, you pay every month, even if you get sick or not. This is what the health insurance companies are mostly looking into – people who will pay monthly subscriptions.
Then there are the deductibles, and these refer to the amount of money you are willing to pay until the company has to step in.
Most of the time, healthy people who are looking to cover just some presumable accidents will look for monthly payments which are as low as possible and will agree to pay higher deductibles.
The other option is copayment and refers to the money you will pay for every doctor’s visit until you meet the required deductible. Last but not least, there is coinsurance that refers to the percentage you will pay for procedures.
All these deductibles or copayments were created so the health insurance company can rest assured that you’re not going to run to the doctor every time you feel like coughing a bit harder.
What Will It Cover?
The health insurance plans are required nowadays to provide their beneficiaries with some essential health benefits such as tests, hospitalization, emergency room services, maternity care, newborn care, prescription drugs, and others.
The Bottom Line
In conclusion, understanding health insurance is hard, but once you get the gist of it, premium, deductibles and other similar words will not seem as sci-fi anymore. Thus, you’ll be able to get a health insurance plan suitable for you.