What is Health Insurance ?
Health insurance is an arrangement with an insurance company that can help you afford the costs of health care. Health insurance works by spreading the cost of care among large groups of people. So insurance paid by one person helps pay for the care of the next in addition to spreading financial risk.
Health insurance has another important function. It improves access to care, meaning more people can seek buy and pay for health care services.
Type of Health Insurance
There are a few ways to get health insurance. First, there is group health insurance, otherwise known as employer-based coverage. This type of insurance offers discounted coverage for a large pool of mostly healthy people and the cost of premiums is split by the employer and employee.
Another type of insurance is individual. Health insurance, which covers a single person or family, it's paid for entirely by the purchaser. In this case, premiums can vary based on the age of the purchaser. They typically offer fewer benefits than group insurance, both group health insurance and individual health.
Insurance Company's
Insurance plans are commonly referred to as commercial insurance plans. But there are government-sponsored health insurance plans as well, like Medicare or Medicaid.These plans are obtained through a government agency or program and usually cater to those who have special circumstances like children. The elderly veterans or active service members, and those with low incomes in these plans costs are split between the government and the insured.
Now that you know how to obtain insurance, let's talk about what plans exist.
However, you'll be required to have a primary care provider (or PCP) acting as a kind of home base for your medical needs. Before visiting any specialist with your HMO network you will need a referral from your PCP.
On the complete other side of the spectrum a fee-for-service or -big word- indemnity type of plan will provide you with lots of freedom, but costs will follow close behind. While you will be allowed to have your choice of your medical providers, you won't need referrals to be covered.
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