Health Insurance

Overview

Health insurance pays for medical expenses. It is provided through a government sponsored social program or a private insurance company. The concept of health insurance was first proposed by Hugh Chamberlen in 1694. In the late 19th century, another kind of health insurance, called accident insurance, emerged. It operated much like modern disability insurance. Accident insurance was first offered in the United States by the Franklin Health Assurance Company of Massachusetts.

Cost/Pricing

The share of health care cost that will be covered by the health insurance company is specified in advance in the contract. Medical expenses include fees paid to doctors, payments for hospital services, long-term care services and laboratory fees. The cost of drugs is deductible only for drugs that have a prescription, except for insulin. The premium amount you pay and the plan you choose, determines the extent of the coverage of the policy.

How It Works

A health insurance policy is a contract between an insurance company and an individual. You can renew the contract monthly or annually. There are various kinds of health insurance schemes. In the comprehensive health insurance, the insurance company pays a percentage of the expenses, after a certain amount is paid by the insurer. Scheduled health insurance plans are more of a basic policy for day-to-day health care, such as going to the doctor or getting a prescription drug. There are also special schemes which may provide benefits for hospitalization and surgeries, but these benefits will be limited. Sometimes, the organization that you work for may provide you a health insurance cover.

Benefits

Medical care expenses are rising every day. Even a minimal amount of health insurance coverage would help you when you have to have emergency treatment or long time medical care. If you are taken to the hospital and have zero health coverage, the entire bill will be your responsibility, and this can sometimes be a burden on you. Though expensive, having a health insurance will certainly benefit you and your family in the long run.

Companies/Industries

There are many companies that provide health insurance coverage. Municipal jurisdictions and states around the United States have begun offering different levels of health insurance coverage to help people who cannot afford medical expenses. Health insurance companies that offer these types of policies include: Blue Cross Blue Shield, Aetna Health, Humana Healthcare, United Healthcare, Unicare, as well as a number of other companies across the nation.

Timing

The sooner the better! If you are fit and healthy, then it's the right time for you to get a health insurance.