Health insurance or health care insurance is an affordable type of medical insurance that pays a portion or all of a patient's potential medical costs after he or she becomes ill. As with all other forms of insurance, however, health care insurance also is risk among many people. For instance, suppose a man in his fifties visits a chiropractor for the first time in his life and gets a terrible backache. Suppose that after three days the back ache doesn't go away, but instead increases in intensity. That man now has two options: He can either stay at home and wait to get better or he can go to his doctor and pay whatever the doctor wants to pay for his back pain.
Both of these options would be bad for him because neither will give him peace of mind. Neither will he have a choice because if his health insurance plans don't cover his doctor's bill, he will end up having to go to a doctor himself or take money out of his own pocket just to pay for his doctor's bill. On the other hand, suppose he has no health insurance at all. He will have to decide between the free services that most hospitals provide against his own bills and the expensive medical treatment that he will have to pay for himself. This scenario is not very farfetched.
A growing number of people are finding themselves in this predicament because managed care insurance plans are not yet widespread. Because it doesn't offer a blanket policy covering everything, people who choose managed care insurance plans must carefully assess their own situation and the kind of coverage they want. Managed care plans must pay for almost everything, from doctor visits, tests and hospital stays, to medication, doctor's fees, emergency room visits and more. Therefore, people must pay more than normal for the coverage they desire.
Health insurance coverage also comes with a deductible. The deductible is the amount an insured pays out of his own pocket before the insurance company begins paying the expenses incurred on his behalf. An uninsured person would have to come out of pocket by a certain amount. But for those who buy health insurance plans, the deductible will be set at a low level so the expenses incurred would be less. If you have a high deductible, your monthly premium payments could be much higher than average.
One of the most popular types of health insurance plans are hospitalisation plans. These cover all medical and surgical expenses incurred by the insured within the period of coverage. Different companies have different policies as to how hospitalisation plans work. But generally, these cover a period of 30 days after a person is diagnosed with a pre-existing medical condition unless the person is declared fit by a medical doctor within this period.
Another type of health insurance plans insurance is coverage for accidents or illnesses. This type of coverage will not cover any expenses incurred in the treatment of an insured accident or illness. Most health insurance company will provide coverage for some basic hospitalization fees up to a maximum limit depending on the insurer. There are also insurers that provide cover for both accidents and illnesses. If the insured is diagnosed with an illness before he is declared fit by a medical doctor, the insurer could pay all expenses pertaining to his illness.
Employer sponsored health insurance coverage is another type that is commonly taken by employees. In this type, the employer will pay a percentage of the monthly premiums. As a employee, you will have to pay a portion of the premium yourself. There are certain advantages of taking this type of policy like in the case where an employee has a pre-existing health condition. In this case, the insurance company will pay all medical costs for the period the employee is covered under the policy.
Most insurance companies offer both types - in-patient and out-of-pocket costs coverage. Many insurance providers will also offer services like prescription drugs free of charge or at a low cost. Some health plans available also include vision care coverage, dental care, hearing aids and maternity benefits. As with any insurance plan, it is important to compare different health insurance providers prior to signing up for one.