What is Health Insurance?
Health Insurance is the assurance of financial support by the Insurance Company, in case if you got some health problems. It covers illness, fatal injuries, hazardous disease, accidents, surgeries or operation expenses, and sometimes even dental expenses too.
Health Insurance is a commitment to yourself by you placing your health at priority. You need to pay a small amount while insuring your health as premium money. This premium amount works as the safety of your savings from medical bills. Most of the Insurance companies have a tie-up with the hospitals and doctors. When you are insured, they pay the larger portion of your medical bills directly to hospitals. Some Insurance companies also provide the facility of reimbursement for their customers (first pay then claim policy).
What is public health insurance?
This is the health insurance done by federal or state governments of the U.S. and all the medical expenses are bearded by them. They provide two types of health insurance to their citizens. First is Medicare and second is Medicaid. Medicare category is established for senior citizens above 65 years old and the person with certain exceptional disabilities. On the other hand, Medicaid is for low-income people or the person with common disabilities. In the U.S.A, 35% of the health insurer is insured with public health insurance.
What is private health insurance?
When you go and purchase health insurance for you or your family on your own, this is called private health insurance. The private entity takes responsibility for the payment of your medical expenses. The medical contract is made between you and the private insurance firm without any intervention of the federal government. Over 65% of health insurer takes insurance service from private health insurance.
What is group health insurance?
The persons who are doing jobs, get a group health insurance plan mandatory by their employers. A part of the health premium is paid by your employer in this case and sometimes the employer wishes to pay the whole premium amount. The group health insurance has the benefits that meet the essential coverage requirement of the affordable care act.
The evaluating risk of insurance company gets distributed among the group members because of which subscriber gets premium at a reduced rate. Just understand you are sacrificing a little amount of money for a long term financial safety in the situation of medical bankruptcy. In the USA, the affordable care act is raising awareness about the importance of Health Insurance and helping people a lot. They had put a capping over the own pocket expenses in the medical bill which is $6600 for individual and $13200 for a family.