Health Insurance Basics
Over the last few years, medical science has undergone various developments and has also made use of new technology. With the advancement in medical science and the new methods that are used these days for treating and curing illness and diseases, health care has become very expensive. For all people it has become very difficult to bear the medical expenses these days. This is the reason why health insurance has gained so much popularity over the last few years.
The type of insurance which covers all types of medical expenses and health care expenses that people bear is known as health insurance. This insurance can be provided by private firms and agencies or by government funded agencies who deal in insurance policies. Health care insurance can be purchased either individually or by many people together as a group.
When people purchase an insurance policy for covering their own medical expenses, it is an individual health care insurance plan. When a firm or an organization purchases an insurance plan to cover the health care expenses of a group of employees, it is a group health care insurance plan.
Health insurance is basically a contract between a person and the insurance company. The insurance company may be a government agency, a private company or even a non profit organization. The insurance company evaluates the risks and the health care expenses. On the basis of this projected cost, a financial plan is developed. This financial plan may be developed on a monthly basis in the form of monthly premium or it may be on an annual basis in the form of annual tax, depending upon the requirements of the person getting insured and also on the discretion of the insurance company and its policy.
Health insurance can be of different types. Employment based health care plans are for employees of an organization.
Direct purchase plans are individual health care insurance plans. These plans can be purchased by any individual. And is individually underwritten.
Comprehensive plans are the ones which pay only a percentage of the total amount of the medical expenses incurred by an individual or the insured person. These plans are often called catastrophic plans and will cover major medical stays.
On the other hand a scheduled insurance plan covers the health care expenses on a daily basis. Mostly known as PPO or HMO plans. They typically cover well and sick visits as well as hospitalazation.
Tags: Womens Health
