Health Insurance Explained
Health care has become very expensive these days. This is because medical science has gone through a lot of advancement and development over the past few years. This has resulted in the development of new methods that are used to treat ailments and cure various types of diseases. The rising costs of health care have become a problem for all types of people. This is why people go in for what is called health insurance.
Health insurance is an answer to most people's problem of covering medical expenses. It is a type of insurance that pays for all health care expenses that are incurred by people these days. This insurance is provided by government agencies as well as many private companies and firms whose business is to sell insurance plans.
Individual health care insurance covers the medical expenses of the individual who has purchased the insurance. Group insurance policies are more common in organizations and firms where a single insurance policy covers the medical expenses of a group of employees of an organization.
Health insurance can be defined as a contractual agreement between an insurance company and an individual. An insurance company is either a government agency or a private firm. A non profit organization can also work as an insurance company. The basic function of an insurance company is to find out the cost of health care that a person is likely to bear. Once the company has an idea about the cost, the company develops a financial plan on a monthly basis or annual basis. When a plan is made on monthly basis, the money is paid in the form of premium and in case of an annual plan; money is paid in the form of annual tax. The type of plan is decided by the insurance company and also is based on the requirements of the person getting insured.
There are different types of health insurance plans that one can opt for. An employment based health care insurance plan is the one which is provided by the employer or the organization for which a person works.
Direct purchase plans are individual health care insurance plans. These plans can be purchased by any individual. And is individually underwritten.
Comprehensive health care insurance plans are the ones which pay a percentage of the medical expenses or the expenses which are left or not paid for after the insured person has paid some of the amount of the medical expenses. Also known as Catastrophic coverage. Meaning mostly used to cover major medical occurances.
The scheduled health care insurance plan are the ones which cover the health care expenses which are incurred on a daily basis by the insured persons. Such as; well visits, sick visits and routine exams. Most commonly known as PPO or HMO plans. - 21396
Health insurance is an answer to most people's problem of covering medical expenses. It is a type of insurance that pays for all health care expenses that are incurred by people these days. This insurance is provided by government agencies as well as many private companies and firms whose business is to sell insurance plans.
Individual health care insurance covers the medical expenses of the individual who has purchased the insurance. Group insurance policies are more common in organizations and firms where a single insurance policy covers the medical expenses of a group of employees of an organization.
Health insurance can be defined as a contractual agreement between an insurance company and an individual. An insurance company is either a government agency or a private firm. A non profit organization can also work as an insurance company. The basic function of an insurance company is to find out the cost of health care that a person is likely to bear. Once the company has an idea about the cost, the company develops a financial plan on a monthly basis or annual basis. When a plan is made on monthly basis, the money is paid in the form of premium and in case of an annual plan; money is paid in the form of annual tax. The type of plan is decided by the insurance company and also is based on the requirements of the person getting insured.
There are different types of health insurance plans that one can opt for. An employment based health care insurance plan is the one which is provided by the employer or the organization for which a person works.
Direct purchase plans are individual health care insurance plans. These plans can be purchased by any individual. And is individually underwritten.
Comprehensive health care insurance plans are the ones which pay a percentage of the medical expenses or the expenses which are left or not paid for after the insured person has paid some of the amount of the medical expenses. Also known as Catastrophic coverage. Meaning mostly used to cover major medical occurances.
The scheduled health care insurance plan are the ones which cover the health care expenses which are incurred on a daily basis by the insured persons. Such as; well visits, sick visits and routine exams. Most commonly known as PPO or HMO plans. - 21396
About the Author:
Author Jeff Cline is a leading expert in insurance of any type. Whether it be home, medical, auto or life insurance he has made sure to offer the best options. Jeff also specializes in speciality types of insurance, such as; aircraft, event, missionary and travel. No matter your needs with insurance he can help you find what meets your needs and budget. Call today 866-526-9669.
posted by X - Men @ 3:07 AM
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