What is Health Insurance and Why People Have to Get It
Insurance is something essential right now because some people invest their money for the future by choosing the right type of protection. There are so many types of insurance and one of them is health insurance. It goes along together with life insurance and those are the most popular types among people. Health is something you can never underestimate because no one wants to get sick but some people can be diagnosed with the worse diseases they can’t cure.
How Health Insurance Works for Covering The Costs of Medical Treatment
Just like the name, health insurance covers the cost of the insured person’s medical and also surgical bills or expenses. In the insurance world, the term “provider” in health refers to laboratory, doctor, hospital, clinic, pharmacy or healthcare practitioner that cures or treats a person. Meanwhile, the term “insured” refers to the person who has the insurance policy and also being covered by the insurance of health. The coverage can be different depending on the type and the difference is located on the payment.
As the insured person, you can pay the costs out with your own money and after that, the insurance company will pay you based on the amount you spent or called as reimbursement. Another way is the insurer will pay directly for the expenses to the health providers. United States as the country with no universal health coverage, the insurance is basically included inside the packages of employer benefit. In 2016, American people with insurance generally decreased to fewer than about 28 million while in 2013, people with insurance was about 44 million based on Kaiser Family Foundation.
Types of Health Insurance You can Get
In 2011, Commonwealth Fund reported that ¼ of US people in working age experienced the insurance coverage’s gap. Many people who did the survey lost the insurance of health once they were unemployed or they changed their jobs. Meanwhile, if you talk about the treatment level due to emergency, it can be varied depending on the insurance types they have. Talking about types, insurance of health has 2 different types as the following:
- Public health or governmental insurance
This type will depend on the government. It means, the state will subsidize all healthcares as the exchange for the premium. The examples of public insurance of health found in US are Indian Health Service, Veteran’s Health Administration, Medicaid and Medicare.
- Private insurance
If you find about public insurance, there must be a private one. CDC or The Centers for Disease Control and Prevention said that healthcare system of US relies on private insurance. Based on the survey done by National Health Interview Survey, the researchers found about 65.4% of people especially those who are under 65 years old in US have this kind of insurance to get the best and most perfect coverage.
Why Do You Need Health Insurance in These Days?
However, many people want to know why health insurance is so important and why people should consider having it as soon as possible? In the big city such as United States, having insurance especially the health one is so important and necessary in order to pay for the high cost of medical care or treatment. You really need it except if you are so rich or wealthy, you are over 65 years old or you are so poor. The rich people can afford or pay the cost of their medical treatment easily especially when it comes to chronic ones.
However, what about the ordinary people? They must keep the body health from any disease because they think they don’t have much money to treat the illness. That is why, you have to get the insurance, and otherwise, you will go bankrupt after paying the medical expenses especially for chronic disease. Health coverage is not different from other similar types of insurance such as apartment, home, car or life. It works by saving your money from suffering cost of major disease and emergency at one.
Choose The Right Health Insurance Because All Companies are Different
However, you still get the best treatment when you really need. Why you need it? Simply, if your car is broken, then you can go to your office by bus or other public transportation until the car is fixed and you can ride it again. On the contrary, when you break the leg, you need much money to see the doctor to treat your leg. Perhaps, you can go right away to get medical treatment but to pay all of them, it is another story you need to find the solution. Also, you have to choose it perfectly.
Though the main coverage might be the same, different companies may have different premiums, policies, terms and conditions when it comes to health insurance. That is why, you have to know and get more knowledge before choosing and getting the right insurance. Once you have it, it is hard to cancel it.