Health Insurance Coverage Explained

Having good health insurance coverage is important for everyone, no matter what their age. Not only can it ensure that you are protected in the case of a serious medical emergency, but it can also come in handy for routine doctor visits for testing and checkups. With the increasingly exorbitant costs of medical care in the United States today, health insurance coverage is a must to avoid racking up huge bills. Those who are considering health insurance coverage should learn as much as possible about the various plans, what they mean, and how they can help.

What is Health Insurance?

Health insurance coverage provides financial assistance for medical services to those who have purchased a health insurance plan. There are health insurance plans for general medical services, dental, optometry, and other services. In order to purchase health insurance, a user must disclose all preexisting conditions to the insurance company, which will then determine how much the user will have to pay for their coverage. This coverage can be purchased by individuals or obtained through their places of business or the government.

How Premiums are Set

Premiums are a monthly amount paid to the insurance company. They are established at the initial sign-up, and are determined by the individual’s medical history. Individuals are required to disclose their full medical history to the insurance company, and the company will set the premiums based on risk analysis. There are laws in the works that will eventually keep insurance companies from being able to deny health insurance coverage based on medical history. Premiums can be purchased for individuals, their spouses or partners, or an entire family.

How Co-Payments Work

Co-payments, at a predetermined dollar amount, are paid to a health care provider by the individual in order to obtain a certain medical service. If this is done, the individual’s health insurance policy might provide complete coverage of medical bills from that particular service. An emergency room co-payment could be around $125, while an urgent care visit could cost about $50 in a co-payment, perhaps encouraging the insured to obtain urgent care before an ER trip. A co-payment for a normal trip to a doctor’s office could cost from $20 to $35.

Who Can Benefit from Health Insurance Coverage

Most people can benefit from health insurance coverage, even healthy people. No matter how healthy a person may be, everyone is prone to the occasional accident that requires emergency medical care. Having a good health insurance plan in place can save you from having the lifelong stress of exorbitant medical bills. Many employers provide general health and specialized insurance to their employees and their families. In addition to this, there are also many reasonable plans for the individual, no matter what their situation or medical history.