Health insurance is a kind of insurance which covers either a specific portion or all of an individual’s risk in the event that he or she incurs medical expenses. As with any other forms of insurance, though, health insurance is risk on the part of many people. This risk can be increased by health conditions which are pre-existing or are not known to everyone. It can also be increased by health conditions which are not known to anyone at all but are common among large numbers of people. Either way, though, health insurance protects individuals against the possibility of catastrophic medical bills that could drain any other income they may have.
One form of catastrophic medical care is hospitalization. In this case, the insured person will be unable to work while receiving medical treatment at a certain hospital. Some people may also lose their jobs if they are hospitalized for an extended period of time because of their illness. In cases like these, hospitalization costs may be very expensive.Another example of a potentially catastrophic medical expense is death from an illness. If someone suffers a terminal illness before they reach the age of 65, they are ineligible for health insurance.
Once eligible, however, they can begin buying insurance to cover their final medical expenses until the time they die. Although dying is often inevitable, some people choose to be healthier and avoid putting themselves at such a disadvantage by taking out longer-term health insurance policies. Long-term care is a less common form of health insurance. Long-term coverage is offered through Medicare and Medicaid programs. These programs are designed to supplement the low-income, frail, and elderly population of our country.
While Medicare and Medicaid offer great help with medical bills and emergencies, both programs have some drawbacks that need to be considered before signing up for coverage. Short-term health insurance plans fall between Medicare and Medicaid, the federal government’s primary healthcare program. Like Medicare and Medicaid, short-term health insurance policies are intended to fill in the gaps left by these more comprehensive programs.
However, short-term plans tend to have fewer benefits than most Medicare and Medicaid programs, which can make them more expensive to incorporate into one’s budget. Furthermore, the poor tend to have shorter life expectancies than those of better off people, so the need for long-term health insurance coverage in this scenario is even greater. Some people cannot afford to pay for health insurance plans. In these cases, they can either cut back on non-medical expenses in order to bring down their overall expenditure, or enroll in subsidized insurance plans offered by the government. Health insurance plans are meant to supplement, not to supplant, existing health plans.
In order to get the most out of them, it is important to do your research, compare prices and coverages, and take into account how the plan will affect your finances. Also consider that in cases where you become ill, the medical coverage will only pay for a fraction of your medical bills – there will be no extra out-of-pocket expenses for illnesses that you would have been able to pay with private insurance. Lastly, if you are employed and covered by a group health plan, then the costs may be shared between all members of the group.