What is Health Insurance: Covers, Benefits and Best Companies

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Health insurance is one very important coverage everyone needs to get.

If you get sick or hurt, health insurance can help you pay for medical expenses.

The beautiful thing is that you can get an insurance cover based on your budget, and the options accessible in your area.

In this article, we’ll be looking at health insurance; Covers, Benefits and Best companies in 2023.

What Is Health Insurance?

Health insurance is a contract requiring an insurer to pay some or all of a person’s medical bills in exchange for a monthly premium.

According to Investopedia, health insurance typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly.

What Is Covered By Health Insurance?

Health insurance coverage varies from one provider to the next, and even within a single carrier’s individual policies.

Here are the general covers by most insurance companies:

  • Pregnancy and delivery services,
  • prescription drug coverage,
  • mental health services,
  • outpatient hospital care,
  • preventative care, and
  • emergency treatments.

Why Do I Need Health Insurance?

According to ndtv.com, here are some reasons for getting a health insurance:

1. Changing lifestyle:

There are a plethora of reasons to have a health insurance policy in place. The shift in our lifestyle has made us more prone to a wide range of health disorders.

Commuting, hectic work schedules, wrong eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems.

2. Rising medical costs:

The medical costs have dramatically risen lately. So, in case of a medical emergency, consumers end up spending their savings, which takes a toll on their future plans.

Reports highlight that Indians primarily depend on their own savings when it comes to tackling health emergencies.

3. Income tax benefit:

Payments made towards health insurance premiums are also eligible for tax deductions.

4. Coverage of pre and post hospitalization expenses:

Not only mainstream medical costs, but also the cost of OPD (out-patient department) expenses, diagnostic tests have also risen in recent times which have made it even more vital for one to buy a health insurance policy.

Note that the medical policies not only cover the hospitalization costs but also the expenses incurred towards OPD and diagnostic tests before and after a stipulated time period as prescribed by the policy.

5. Additional benefits:

One also gets benefits such as ambulance coverage, coverage for day-care surgeries, coverage for health check-up and vaccination expenses.

These days’ insurance companies also offer health insurance for Ayush treatment.

What Are the Types of Health Insurance

According to Medicalnewstoday, there are two main types of health insurance: private and public, or government. There are also a few other, more specific types.

The following sections will look at each of these in more detail.

#1. Private health insurance

The Centers for Disease Control and Prevention (CDC) say that the U.S. healthcare system relies heavily on private health insurance.

In the National Health Interview Survey, researchers found that 63.7%Trusted Source of people under the age of 65 years in the U.S. has a type of private health insurance coverage.

#2. Public, or government

With this type of insurance, the state subsidizes healthcare in exchange for a premium. Medicare, Medicaid, the Veterans Health Administration, and the Indian Health Service are examples of public health insurance in the U.S.

Other types

Some people may also define an insurer by the way it administers its plans and connects with providers. Here are some examples of the types of plans available.

Managed care plans

With this type of plan, the insurer will have contracts with a network of providers to provide lower cost medical care to its policyholders. There will be penalties and additional costs added to out-of-network hospitals and clinics, but they will provide some treatment.

The more expensive the policy, the more flexible it is likely to be with the network of hospitals.

Indemnity, or Fee-for-Service, plans

A Fee-for-Service plan covers treatment equally among all providers, allowing the insured to choose their preferred place of treatment.

The insurer will typically pay 80% of costs on an indemnity plan, while the individual pays the remaining costs as a coinsurance.

Health Maintenance Organization plans

These are organizations that provide medical care directly to the insured. The policy will usually have a dedicated primary care physician who will coordinate all necessary care.

Health Maintenance Organization (HMO) plans will usually only fund treatment referred by a family doctor and will have negotiated fees for each medical service to minimize costs. This is usually the cheapest type of plan.

Preferred Provider Organization plans

A Preferred Provider Organization (PPO) plan is similar to an indemnity plan in that it allows the insured to visit any doctor they prefer. The PPO plan also has a network of approved providers with which it has negotiated costs.

The insurer will pay less for treatment with out-of-network providers. However, people with a PPO plan can self-refer to specialists without having to visit a primary care physician.

Point-of-Service plans

A Point-of-Service plan functions as a combination of an HMO plan and a PPO plan.

The insured can choose between coordinating all treatment through a primary care physician, receiving treatment within the insurer’s provider network, and using non-network providers.

The type of plan they have will dictate the progress of treatment.

What is the Right Age to Buy Health Insurance

People often wonder the right age to buy a health insurance policy. However, there’s no right age to buy one. But, if one buys health insurance policy at an early age, one will have to pay less for the policy.

Premiums for a health policy increase with one’s age; that’s because the associated risk increases.

Premiums for health plans are determined by the age, medical history, city of residence, etc. of the insured. So, if you buy a health plan early it will help you save on the premiums you will pay.

How Do You Choose the Best Health-Care Plan?

Purchasing health insurance may be a time-consuming and perplexing task, especially with so many options and rates to consider.

If you want to make the search a little easier, ask yourself a few questions. They are as follows:

1. Is coverage provided by my company, or will I have to shop for coverage on the health insurance marketplace?

If available, a corporate plan may be less expensive than purchasing an individual plan.

2. How often do I expect to use my insurance?

If you only go to the doctor for routine/preventative treatment, you’ll need a different strategy than someone with a chronic illness or a child with special needs.

3. What kind of expenses might I anticipate?

high deductible or higher premiums are often the two options available to you.

A plan with a high deductible can save you money all year if you don’t intend to use your coverage much and can handle the out-of-pocket expense if you do require serious care.

Paying a little more for premiums in exchange for a smaller cost-share/deductible may be the less painful alternative if you and your family visit the doctor frequently.

3. What if I require immediate medical attention especially while traveling?

Before picking a plan, you should carefully look at the coverage options, especially if you often travel to other states. When it comes to receiving treatment while away from home, some plans have tougher limits than others.

Who Needs Health Insurance?

Everyone needs health insurance. Health insurance covers the expenditures of small and significant medical difficulties, such as operations and treatment for life-threatening ailments and disabling conditions.

Why Do You Need Health Insurance?

If you’re young, healthy, and lucky, your monthly premium may exceed your insurance costs. If you (or someone in your family) has or develops a recurring ailment that requires treatment, is wounded in an accident, or develops a disease, you may incur medical expenditures that you cannot afford.

What Is the Cost of Health Insurance?

There are numerous personal elements that go into calculating your coverage cost.

When it comes to health insurance rates, you must consider the differences between employer-sponsored and Marketplace-purchased plans, the difference between single-person and family coverage, and whether your income qualifies you for a tax credit on your Marketplace plan premiums.

However, there are a few elements that go into determining the cost of health insurance across the board. Your age, location, plan category, individual vs. family enrollment, and whether or not you use cigarettes are all factors to consider.

If you smoke or vape, for example, you may anticipate your premiums to rise by as much as 50% whether you buy an employer-sponsored plan or one on the Marketplace.

When you consider that annual healthcare premiums for single people average around $7,470 and $21,324 for families, a 50 percent increase may seem enormous.

Best Health Insurance Companies

Here are the best health insurance companies:

  1. Aetna
  2. Blue Cross Blue Shield
  3. Cigna
  4. Humana
  5. Health-Care Plan
  6. United Heathicare
  7. Health Partner
  8. Harvard Pilgrim’s Progress
  9. Molina Healthcare 


This is what healthcare insurance is all about. We hope you enjoyed reading.



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