Why you Need Health Insurance?

The United States does not have socialized medical care. If a person does not have health insurance coverage, he / she have to pay for health care out of their own finances at the time of service. This can run into many thousands of dollars for serious illnesses

One buy’s health insurance for the same reason one buy’s other kinds of insurance, to protect one self financially. With health insurance, an individual and their family are protected in case of any medical care that could be very expensive.

One cannot predict what his medical bills would be. In a good year, costs may be low but if he becomes ill, medical bills could be very high. If he has insurance, many of medical costs are covered by a third-party payer, not by the individual. A third-party payer can be an insurance company or, in some cases, it can be the employer.

Many people in the United States are enrolled in some sort of managed care plan. This is an organized way of both providing services and paying for them. Different types of managed care plans work differently and include preferred provider organizations (PPOs), health maintenance organizations (HMOs), point-of-service (POS) plans and fee-for-service plans.

Individuals enrolled in health care plans pay a monthly or quarterly fee as insurance for the time when they will need medical attention. At the time when a service is provided, the health insurance organization pays part or the entire fee, minimizing the amount an individual have to pay at the time of service.

Choosing the right insurance plan that best meets financial circumstances will depend on information like, whether an individual is married or single, have children or no children. Definitions of the health insurance terms used are included in the section called Understanding Health Insurance Terms.