What Is Health Insurance

An Introduction

What is health insurance? Health insurance is a form of risk-mitigation which protects the buyer against unplanned medical expenses. Just like other insurance products, the buyer has to buy this product, usually by paying premiums, which in turn will "cover" the buyer against costs incurred due to pre-specified illnesses and medical conditions. Usually medical insurance is purchased privately, but in some countries and jurisdictions, the government may provide the citizens with health insurance or medical care.

History

The first modern health insurance product were made available in the 1850s when the railway and mining workers had the option of buying what was called accident insurance. The buyers were protected from costs incurred due to an accident while on work - which was quite hazardous for both railway-workers and miners. From such beginnings the modern health insurance arose - its affect can be seen in the prevalence of disability insurance, and from the fact that health insurance is referred to as disability insurance under California State law.

Terms

Here are some of the well known concepts and terms from the domain of Health Insurance:

• Cover this is the maximum sum that the provider will provide for the wellness of the policy-holder.
• Premium This is the sum that the policy-holder, who is the buyer, pays to the provider for the cover provided
• Deductible This is the sum that the insured shall have to pay before the provider starts paying their expenses in a given year. This can be a flat sum, such as $500, which the insured would need to spend before they get any expenses covered. A related term is Co-Payment, which is the sum that is paid by the insured as part of a single visit to a doctor etc.
• Exclusions There are diseases or services that are not covered by a particular insurance policy. The insured will have to pay for them completely out of their own pocket.
• Comprehensive vs Scheduled Insurance Comprehensive plans pay for the medical costs for the insured after a deductible has been paid by them. These can cover catastrophic events as well as normal day-to-day expenses. In comparison, Scheduled Plans are a watered down insurance plans that only pay to a limited extent, and are usually supplemental to the comprehensive insurance plans.

All these will vary from plan to plan, and to know more about your plan, refer to the offer document.

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By Donnie Otis

Health Insurance

Nothing is more precious to us than having good health. Everyday people are getting more aware of the importance of having good health in order to be able to l8ive life to the fullest. But as the saying goes nothing is certain in this world, we will always have uncertainties and surprises good or bad in our life. We do get sick once in a while flu or even some major illness, or get ourselves involve in accidents. What ever the case may be these events when they happen to us could deplete our savings or even push us to bankruptcy. With the rising cost of hospital fees, laboratories and doctors' fees it is now expensive and complicated. This is where health insurance could benefit us all. Yes, health insurance may cost a lot but having no health insurance at all cost more. Medical bills incurred from an accident could burn a hole in your savings. And in cases of cancer treatments, with all the doctors' check ups, laboratory tests, and chemotherapy that one has to go through it could ruin you financially.

Health insurance could help you pay for the cost of a regular medical check ups, surgeries, contact lenses and glasses and even emergency treatments. There are two basic kinds of health insurance plan, the indemnity plan and the managed care plan. Indemnity plan is also called the fee for service plan. It has wider freedom and flexibility in the choices of the insured. He gets to pick the doctor, hospital and laboratory and other medical service provider of his choice. As long as the medical service is included in the health contract. But, the catch is the plan doesn't pay for the entire charges, instead the insured shoulders the 20 % of the payment. This kind of plan covers only illnesses and accidents but preventive care like flu shots and birth control are not included. And coverage of the cost of prescription drugs and psychotherapy will depend on the policy and the company.

Managed Care Health insurance differs from the indemnity plan in a lot of ways. First, choice of doctors, hospitals, laboratories and other medical service provider is

limited to only those who have contracts with the HMO -Health Maintenance Organization--.Medical services is received only if authorized by the plan. If you insist on engaging on non authorized medical service provider then the cost of service or care provided will not be paid by the company. Preventive care and mental health treatment are covered by the plan.

Due to the rising demands for better and wider health insurance coverage, the health insurance is offering hybrid plans. Wherein, they combine the benefits of HMOs and indemnity coverage. The method is you can use the network of medical service providers that have contracts with the HMO but you are allow to choose someone outside of the network and pay for a higher percentage in the fee.. Managed Care plan also allows open access theory, where one can see a network medical specialist without any referrals from HMO.

You need to decide carefully in choosing the right health insurance plan for you and your family needs. You need to have a careful evaluation on what your family needs and extensive research for the right health insurance company that will provide for those needs. Keep in mind that the lowest premiums don't really mean it's the cheapest plan. Remember the cheapest plan is the policy that will give you the best benefits that your family really needs in case of emergencies and illnesses.

Are you looking for more information regarding health insurance? Visit http://www.whatisinsurance.com/ now for more information.

By Lindsey Jenkins