Health insurance or medical insurance, as with many other forms of health insurance, is insurance against risk. This risk is provided by the health care provider and is known as the "guaranteed issue". Because of this there are some risks that are included in health insurance policies, but these risks are very small and rare.
Health insurance premium is determined by a number of factors. The deductible and co-pay amount will be two of the biggest determinants of the overall cost of the premium. The insured will have to pay this amount out-of-pocket before the health insurance company will take over the cost of medical care. This is also called the co-payment or deductible.
Co-insurance is also another factor that health insurance covers. This is where the insurer pays a percentage of the total cost of medical bills up to a certain amount. Again, the insured will have to pay this out-of-pocket amount before the insurer will take over the remaining cost.
Another type of coverage that health insurance plans offer is the benefit package. This is where the insurer will cover all medical costs for a specific disease or accident. Typically, the diseases or accidents covered are dental and hospital bills. Many times these benefit packages are required when the insured is considered to be a high risk individual.
A final type of coverage is the critical illness plan. This plan offers comprehensive insurance coverage. Often times, this coverage includes everything from hospitalization to medicines to advanced procedures. The policyholder will be responsible for paying for anything that isn't covered under the critical illness plan. A critical illness plan typically covers diseases, accidents, and critical care procedures.
It's important to realize that there are several different types of health insurance plan offers tax benefits. Some are more prevalent in certain states than others. For instance, Medicaid, which is provided by the federal government, is a major plan offered tax benefits. While state governments usually have some sort of coverage too, they are limited. Usually, states don't offer such tax benefits unless the plan is extended to their residents. However, they do offer some tax benefits if the individual lives in the state and at least 18 years old.
Another option for coverage is employer-sponsored health care coverage. An employer will select the health care coverage for his or her employees. Most employers do offer some coverage, but it is usually very limited. Some employers offer medical benefits as part of a group health care program. However, most employees don't get this type of coverage because their income is just not high enough to justify the premium costs.
The three major types of health coverage are Medicaid, employer-sponsored insurance programs, and state-licensed private insurers. Each has its advantages and disadvantages. Health insurance coverage should be selected with an objective eye to meet your present and future needs, but avoiding penalties if you choose a policy that doesn't meet your needs. There are many options out there, so it pays to do some research.
Medicaid is a federal program that provides coverage to people who are eligible based on their financial ability to pay a certain premium. It does not cover medical expenses, prescriptions, or any other services. Although it is popular, it does have a few disadvantages. Medicaid is popular because its rates are low, but its long-term impact on the health care costs of a family is not clear.
Employer-sponsored coverage is another popular option. It offers the lowest premiums compared to all the other plans. However, most of the employers I have spoken with do not offer any long-term benefits. Short-term coverage plans can be expensive if you take advantage of them. Also, these plans typically have very high deductibles and co-pays, which can also increase your monthly insurance premium.
Private health insurance coverage is another option. You can purchase this type of insurance from an individual or through an employer. There are many advantages to purchasing private medical insurance. For one, you will know exactly what your medical expenses will be every month. For another, if you need to see a doctor that is outside of your network, you will have to pay the cost. If you go outside of your network, your out-of-pocket expense could be higher.
In addition to purchasing health insurance policies from your employer, you can also get coverage from an insurer of your choice. One advantage to shopping for insurance policies by yourself is that you will know the facts about every insurance policy you apply for. Another advantage is that you will be able to compare the cost and premium of each and every insurer. These policies will cover most, if not all, of the covered items and services that you receive from your insurer, including doctor visits, emergency rooms, hospital stays, surgical procedures, and dental care.