Insurance that is taken against the risk of bearing medical expenses is known as Health Insurance. What a health insurance plan does is that it makes a rough estimate of the health care expenses that are generally borne by an individual and based on that, allows the insured to get for him an insurance plan. The insurer allows for a regular payment structure designed to be taken out of the insured’s monthly payroll or earnings in the form of a premium to make sure that the sum is available for the insured in their time of need.
The insurer can be a government agency, a private entity or a not-for-profit organization. Apart from being a tool of incurring medical expenses, health insurance plans also cover the losses that happened from an accident, disability or accidental death.
Health Insurance In The United States
In the United States, a health insurance plan (also called a health care plan or health care coverage) is a basic program that covers all the medical expenses. It may be administered by a social insurance program given by the government or may be available to the insured by a privately purchased insurance provider. Apart from covering medical expenses, a health insurance plan also covers disability expenses and custodial care and nursing expenses.
Government Health Insurance Plans
In the United States, there are prominent health insurance plans provided by the government themselves. Some Government health care plans are:
- Federal Employees Health Benefits Program
- Indian Health Service
- Veterans Health Administration
- Military Health System / TRICARE
- Medicaid / State Health Insurance Assistance Program (SHIP)
- State Children’s Health Insurance (CHIP)
- Program of All-inclusive Care for the Elderly (PACE)
- Prescription Assistance (SPAP)
Private Health Insurance Plans
Apart from government assistance, there are private agencies that provide health insurance plans
- Health insurance providers provide Consumer-driven health care plans to the insured
- Flexible spending account (FSA)
- Health reimbursement account
- Health savings account which includes High-deductible health plans and Medical savings account
- Private Free-for-Service (PFFS)
- Managed care
- Health maintenance organization (HMO)
- Preferred provider organization (PPO)
- Exclusive provider organization (EPO)
- Medical underwriting
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How To Choose A Health Care Plan
When it comes to choosing the insurance plan you want, you have many choices. If you are buying your insurance from the health care marketplace, then you have the choice of plan and the level of insurance guarantee that you want to opt for, based on the premium amount of your convenience.
Health plans have four levels based on the benefits and the coverage provision: Bronze, Silver, Gold and Platinum.
- Bronze health care plans have the least coverage with around 60% of your medical expenses.
- Silver health care plans cover 70% medical expenses.
- Gold health care plans cover 80% medical expenses.
- Platinum has the most health care coverage with 90%.
Best Health Insurance Plans In The USA
1. Health Maintenance Organizations
This health plan gives you the least freedom to choose your healthcare provider but it also allows you to admit lesser paperwork comparatively.
2. Exclusive Provider Organizations
More freedom to choose your healthcare provider but no coverage at all if the insured opts for an out-of-network hospital.
3. Preferred Provider Organizations
Slightly more freedom to choose your choice of healthcare unit but more paperwork in comparison. Also, if the insured opts for an out-of-network hospital, extra costs will be incurred.
4. Point-of-Service Plans
This insurance plan is the blend of the HMO and the PPO plan. Moderate freedom to choose your healthcare provider and comparatively lesser paperwork needs to be filed as well. The person has the choice of visiting a doctor of their choice.