Health insurance is not as complicated as you think it is. It only serves as a bridge between you and affordable health care, making it easy for you in case of any health issues.
A much simpler way to understand how health insurance works are to view it as similar to car insurance. Health insurance helps reduce the cost you would pay for medical treatment if any serious health arises in the future. This agreement must be between you and the health insurance company.
How Does It Work?
This is how health insurance works:
You will pay a monthly premium to the insurance company. Keeping up with this premium will ensure your policy stays active and you receive coverage. Depending on the health plan, you might also have to pay a deductible. This is the cost you will have to pay for your health care until the coverage from your plan kicks in.
The cost of medical care can be pretty expensive, which is why you need health insurance to cover your medical care and make it more affordable. Getting health insurance would reduce the risk of losing your savings to a fatal accident, a chronic disease, or any other emergency.
Types of Health Insurance
There are two main types of health insurance: private health insurance and government health insurance. Private health insurance is health plans that are provided by private companies that can be purchased for individuals or for groups. Government health insurance, also referred to as public health insurance, is provided by the government, typically for low-income families and individuals, the elderly, and others who may qualify due to other specific reasons.
Services Covered by Health Insurance
One of the best ways to know what your health insurance covers is to review the policy and confirm the covered services. Some of the most common services you can receive coverage for include:
- Outpatient care
- Emergency treatments
Services that are not typically covered by health insurance include:
- Cosmetic surgeries such as liposuctions, plastic surgeries, etc.
- Alternative medicines such as acupuncture, herbal medicines, etc.
- Experimental procedures, such as those with no proven outcomes