What Are the Different Types of Health Insurance?
Health plan coverage is financial protection for individuals or families, who need to protect themselves from health risks and liabilities in the future. Health coverage is not limited to those with insurance plans, but it also applies to those without insurance plans.
Health insurance is basically an insurance policy that covers a part of an entire risk of an individual incurring medical costs, distributing the risk among several people.
Health coverage is provided by employers as an employee benefit. In addition to health insurance, most employers also offer health care benefits to their employees.
These Health plan benefits include
- Dental care
- Hospital visits
The costs of these benefits depend on the type of insurance policies being offered by the employer. Health care plans can be of many types, each providing a different level of coverage. There are
- Group health care plans
- Private health care plans
- Individual health insurance plans
- Medicare-providing health plans
- Medicaid-providing health plans
- Catastrophic health plans.
Each type of health plan is designed to fulfill a specific need
- Group health insurance is generally provided by employers for a group of people. They usually cover all the members of the organization for a particular medical need. Health benefits are offered at a lower cost to employers than to individual employees.
- Individual health insurance plans provide medical coverage for an individual to cover his/her own medical costs. It is typically paid by the monthly premium, which can vary according to the age, gender, medical history, smoking habits, and income level of the individual.
This type of health insurance is usually not purchased by employers because it can be a great financial burden on them. However, many individuals purchase this type of health plan on their own.
- Private health insurance plans are sometimes called HMOs (health maintenance organizations). They provide a high level of coverage to a patient through a large network of doctors. The health care providers are chosen based on the quality of service provided by them.
- A catastrophic health plan is usually obtained only by those who have a long history of medical bills and are unable to pay for health expenses.
These plans cover major medical illnesses like
- Heart disease
- Diabetes, etc.
- They also cover emergency medical expenses. In certain cases, a health plan may also include prescription drug coverage.
Health insurance plans vary in their levels of coverage
You should carefully evaluate the needs of your family, choose the right health insurance plan for you and your employees so that you can fully protect yourself and your family against possible health risks.
High deductible health insurance plans are normally available in group and individual health plans. In group health plan, you get a health insurance policy for all the members of your family.
The members pay a fixed monthly premium that is usually less than the monthly salary. The deductible amount of the insurance policy is based on the income level of the policyholder. For example, those with a higher income need to pay higher premiums.
An individual health plan is available to people who are self-employed. It is similar to a group health plan, except that you don’t need a lot of income and don’t require a lot of dependents. The premiums paid are based on the ability to pay.
In addition, you can also obtain health insurance through an HMO (Health Maintenance Organization). where a group of health care providers participate and offer a health plan for their members.
Usually, you get a health insurance plan that covers you, your spouse and your children. You and your spouse share the premium, and the provider will pay the remaining balance of the policy for you, your spouse, or your children.
There are many websites on the internet that will help you find affordable health insurance for your current needs. They have access to a wide variety of health insurance plans that will meet your needs.
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