Insurance Health: Common Types of Health Insurance Policies

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What is insurance health? Are you looking for how to get a funded hospital bills and how to access good medical care? When searching for health insurance, whether from an insurance broker or marketplace, you will have to choose a health plan with benefits. Let me show you how to use the health insurance plans for your medical care.

Insurance Health

Insurance Health

Health insurance is the financing of medical expenses by contributions or taxes paid into a common fund to pay for all or part of health services specified in an insurance policy or the law. The key elements common to most health insurance plans are advance payment of premiums or taxes, pooling of funds, and eligibility for benefits on the basis of contributions or employment.

Health insurance may apply to a limited or comprehensive range of medical services and may provide for full or partial payment of the costs of specific services. Benefits may consist of the right to certain medical services or reimbursement to the insured for specified medical costs.

Insurance Health Policy

A health insurance system that is organized and administered by an insurance company or other private agency. It comes with the provisions specified in a contract that is known as private, or voluntary, health insurance.

Private health insurance is usually funded on a group level, but most plans also provide for individual policies. Private group plans are usually financed by groups of employees whose payments may be subsidized by their employer, with the money going into a special fund.

Health Insurance hospital costs are the most prevalent form of private health insurance coverage; another type is major medical expense protection, which relief burdens involved in insuring small costs.

Government Health Insurance

Government health insurance or social insurance is a system that is financed by legally mandated compulsory contributions or by taxes and whose provisions are specified by legal statute. This type of medical insurance plan dates from 1883 when the government of Germany initiated a plan based on contributions by employers and employees in particular industries. In the United State, Medicare and Medicaid.

The medical insurance for the poor and elderly citizens respectively are government insurance programs. The distinction between public and private programs is not always clear, because some governments subsidize private insurance programs.

Quite different, however, are government medical care programs (which are sometimes characterized as “socialized medicine” in the United States). In these systems, which are usually financed from general tax revenues, doctors are employed, directly or indirectly, by a government agency, and hospitals and other health facilities are owned or operated by the government. The National Health Service in the United Kingdom and the Veterans Health Administration program operated by the U. S Department of Veterans examples are such systems.

Common Types of Health Plans

There are various types of health insurance plans. Each plan carries its cost and deductible amount. The plans are:

  • Platinum – it covers 90% on average of your medical costs, you pay 10%
  • Gold – it covers up to 80% on average of your medical costs, you pay 20%
  • Silver – it covers 70% on average of your medical costs and you pay 30%
  • Bronze – covers 60% on average of your medical costs you pay 40%
  • Catastrophic – With this policy, you pay after you have reached a very high deductible ($8,150 in 2020). Also, the catastrophic plans must cover the first three primary care visits and preventive care for free, even if you do not have yet met your deductible.

Each insurance brands will likely cover one or more of these four common types of plans:

  • Preferred Provider Organization (PPOs)
  • Health maintenance organization (HMOs)
  • Point of Service (POS) plans
  • Exclusive Provider Organization (EPO)
  • High-deductible health plans (HDHPs), which may be linked to health savings account (HSAs)

Knowing how these plans work will enable you to pick one that fits your budget and meet your health care needs.

Health Insurance Plans Explained

In the United States, health maintenance organizations (HMOs) became popular in the late 20th century. As a means to control medical costs, that is through the use of pre-negotiated fees for medical services and prescription medicines.

Another one as an alternative to the HMO is the preferred provider organization (PPO), also known as a participating provider option. They offer features of traditional fee-for-service insurance plans, such as the ability of patients to choose their own health care providers. But also follows the lower-cost strategies of HMOs.

For example, those enrolled in a PPO can see any medical provider at any time, without a referral from a primary care physician. However, if the insured uses one of the insurance company’s “preferred providers,” the company generally pays a higher percentage of the cost.

In both HMOs and PPOs, the insured is usually responsible for a certain portion of the cost of the medical services, with a co-payment fee (paid by the insured at the time of an office visit) being one of the most common charges. For further reading click here.

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