Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. It can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. Health insurance can be provided by private companies, employers, or the government.
There are different types of health insurance plans, such as fee-for-service, health maintenance organization (HMO), preferred provider organization (PPO), and point of service (POS) plans. Each plan has its own set of rules and regulations, and may offer different levels of coverage and benefits.
When you have health insurance, you pay a monthly premium to the insurance company. In exchange, the insurance company agrees to pay for some or all of your medical expenses, depending on the terms of your policy.
If you need medical care, you will typically have to pay a deductible, which is a set amount of money you must pay out of pocket before your insurance coverage kicks in. After you meet your deductible, your insurance will cover a portion of your medical expenses, and you will be responsible for paying the remaining amount, which is called your co-pay or co-insurance.
Having health insurance can provide many benefits, including:
If you don't have health insurance, you may be responsible for paying for all of your medical expenses out of pocket. This can be very expensive, especially if you need medical care for a serious illness or injury.
Under the Affordable Care Act (ACA), also known as Obamacare, most Americans are required to have health insurance or pay a penalty. However, there are some exemptions to this requirement, such as for people who cannot afford coverage or who have certain religious beliefs.