Definition of Health Insurance
Health insurance can be expensive. Monthly premiums, co-payments and deductibles can really add up, especially for those with poor health. However, not having health insurance can cost you a significant amount of money or even lead to financial ruin. If you are financially unable to cover the costs when accidents happen or diseases develop, this may cause you to cease treatment.
Function
Health insurance is coverage that is provided for medical care. Most medical costs incurred from a routine doctor's visit to a visit to the emergency room are the responsibility of the insurance carrier. Partial or full payment of the monthly premium is typically deducted from an employee's wages. The covered individual usually has some out-of-pocket expense, such as a co-payment or deductible.
Types
Generally, health insurance is offered as part of a benefit package provided by an employer. The employee may choose to enroll in an individual or family plan. Sometimes individual and family health insurance is provided by government programs such as Child Health Plus, Family Health Plus, Medicaid or Medicare, if certain eligibility requirements are met. Workers without health insurance or those who are unemployed pay their health care premiums directly to the insurance company or via a broker.
Benefits
Having health insurance allows individuals to get the care they need to treat an illness or injury without incurring the exorbitant cost of the treatment. It can also provide individuals with a piece of mind knowing that in the event of an accident or an injury, they know what they would be responsible for paying. This allows patients to focus on their treatment and recovery without the distraction of financial burden.
Warning
Living without health insurance puts you at risk physically as well as financially. One trip to the emergency room can cost thousands of dollars. Also the cost of medications can be a financial burden, especially if you are taking a maintenance medication. Yearly physicals by your family doctor, annual gynecological visits and other preventative care might be avoided due to the cost, making you vulnerable to the progression of an otherwise preventable condition.
Considerations
When choosing a health insurance carrier, read all the information very carefully. Be clear on exactly what is covered and what is not. For example, if you take one or more medications daily, make sure that you are covered for prescriptions and what your financial responsibility will be for the specific medications you are taking. Also, keep in mind that not all policies cover treatment for mental health conditions. Check to see what your co-payment and deductible amounts are, if any, and find out if the doctors that are currently treating you accept this insurance plan.
