With each passing day, healthcare gets more complex and cost-heavy, and along with these changes comes increased struggles for individuals who must pay for it. Luckily, health insurance is a way for people to access health coverage without breaking the bank or putting their finances at a major risk. In this guide, you’ll learn what this type of insurance is, how it works, as well as how it can help you!
What is It?
In its most basic sense, this type of insurance is an agreement that ensures health coverage from a company in exchange for a premium that is paid regularly by a policyholder. The coverage offered heavily depends on the policy.
Who is It For?
In the United States, individuals are penalized who do not carry some form of insurance on their health, per the ACA (Affordable Care Act). However, from a more general standpoint, there is not a single person alive who wouldn’t stand to benefit from insurance. Paying for health services out of pocket without coverage can and would dramatically add up over time.
How Does It Work?
Insurance for your health is designed to help you cover the costs of healthcare comfortably and affordable. Depending on your policy, you might receive help paying for doctor’s office visits, stays in the hospital, medical devices, prescription drugs, and much more.
There are multiple types of insurance coverage, and the one you ultimately choose will depend on your needs and personal circumstances. Types of insurance include:
HMOs – Health Maintenance Organization plans
PPOs – Preferred Provider Organization plans
EPOs – Exclusive Provider Organization plans
POS – Point of Service plans
HDHPs – High Deductible Health Plans
Short terms plans
The most obvious benefit of health insurance is coverage for when the least expected happens, but other benefits include free preventative care, a lessened strain on your finances, avoidance of the ER, and peace of mind. Today, it’s more difficult than ever to finance the costs of healthcare; insurance helps make it more affordable and manageable.