What Is Health Insurance?
<lingo>Health insurance is a type of insurance that covers medical expenses for enrollees. Health insurance may also be referred to as medical insurance. There are different types of health insurance, and a wide range of plans are available. All plans require a fixed monthly payment to an insurance company called a premium.
A predetermined deductible amount refers to the maximum an enrollee must pay out-of-pocket for non-preventative health care costs before their insurance company kicks in to cover claims. The goal of health insurance is to safeguard against the exorbitant medical expenses that may arise due to various injuries, illnesses, and chronic conditions, ultimately giving enrollees peace of mind.</lingo>
Health Insurance Clearly and Briefly Explained
Health insurance may be provided as a benefit from an employer or purchased independently by an individual for themselves and their family. Some employers defined as “large employers” are required by law to insure their full-time employees and their families. Large employers are those who regularly employ 50 more full-time employees. Smaller employers are not required to provide insurance to their employees.
If you work for a smaller employer, are only employed part-time, or are self-employed, you may need to purchase individual health insurance. Individual plans can be purchased directly from any insurance company who operates in your area.
<twitter>Health insurance is a type of insurance that covers medical expenses for enrollees.</twitter>
Depending on your income, the Affordable Care Act may assist you in paying your insurance premiums. Some individuals also qualify for Medicare or Medicaid, both of which are government programs.
Medicare is generally for individuals who are 65 and older, but others may qualify as well. Medicaid is for individuals who have low or no income. Specific requirements must be met to qualify for each of these government health insurance programs.
Choosing a health insurance plan largely depends on your health care needs and how much you wish to allocate to insurance. There are trade-offs for different plan options. High deductible health plans (HDHPs), for example, have high deductibles but low monthly premiums.
Health insurance can only be purchased during the Open Enrollment Period, which is generally around November and December each year, unless extenuating circumstances apply.
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