Health insurance is a sort of insurance which covers either a major part or the entire risk of the individual incurring healthcare costs. As with any other forms of insurance, the risk you pose to an insurance company is also considerable risk amongst most people. This means that health insurance companies have an inherent interest in ensuring as many people as they can. This ensures that the company will make as much money as possible from you and this is why they offer such low premiums. The way that the insurance companies make money is by keeping out as many people as possible who are simply not risk worth, meaning that they will not necessarily need to make a claim on the plan.
In the United States Medicare and Medicaid are two of the major programs that provide healthcare insurance plans for the elderly and/or for people with disabilities. The coverage provided by Medicare consists mainly of hospitals, surgical and long-term care facilities, and certain other services. Medicaid, on the other hand, is for the people who are incapable of earning an income and/or paying for their own healthcare. Both of these programs are managed by the state and are funded partly through general taxes.
As there are two main health insurance plans in the United States, both of which are popular and which have a significant influence on the health care industry, it is important to understand the differences between them. There are two primary classifications of health insurance plans. They are managed care plans and fee-for-service plans. A managed care health insurance plan is a contracted deal between a health care provider and a health insurance company; here, the company that underwrites the contract takes care of all the details such as billing, underwriting, etc… They have the option of picking their own health care providers for their employees, so as a result of the provider’s costs are covered completely.
On the other hand, fee-for-service health insurance plans are managed care plans, but the insured person only pays the deductibles and coinsurance, along with some out-of-pocket expenses. There are many people who buy health insurance plans purely for the out-of-pocket expenses. Their monthly premiums are usually high, but they are able to pay it off because of the large deductibles. Some people who buy health insurance plans are those who had to change jobs recently, or those who had unexpected medical expenses during the course of their employment. Another example is the military, where active duty members are allowed to enroll in a health plan, while those on leave are not eligible.
As a general rule, health insurance covers emergency medical care, but it does not cover preventative medical care such as cholesterol screening. If you are injured in an accident, the hospital will pay for your medical costs, but if you are injured at home, you will have to pay for this on your own. Usually the only people who suffer from this are those who visit the hospital “out of their luck”. Usually, coverage must pay for just minor medical care in order to be considered “adequate”.
Currently, Medicare supplement insurance has been given a bad name. Although many people believe that the program is very expensive, the fact is that it provides affordable care to millions of Americans. Although the government does provide for supplemental medical expenses, it does not cover preventive care like cholesterol screening, which is why most people do not consider it necessary. However, according to the new Affordable Care Act, this coverage will be required for every individual who is currently receiving Medicare.
