Around the world, there are different types of health care systems in place that provide health care services to its citizens. Here in the States, we have a health insurance system in place that helps individuals pay for their medical expenses. Like car insurance provides protection against unforeseeable accidents, likewise health insurance provides protection against the cost of medical services.
There are basically two types of health insurance programs: private and social insurance programs. These two types of programs provide different levels of financial protection, and the scopes of coverage vary widely depending on the individual. Private insurance programs are either purchased by individuals or provided to them through their place of employment. Companies that provide private healthcare insurance that you may be familiar with include: Aetna, Blue Cross Shield, Aflac, Cigna, etc. Social insurance programs on the other hand provide assistance to individuals who can’t afford medical coverage; social welfare programs that you might be familiar with include programs like Medicare and Medicaid.
Most of us are covered under our parent’s insurance,—which is private insurance that is either provided through their employers or that they pay for—so we don’t really think much about insurance till we are either off to college or we start our first full time job. But having an understanding of health insurance is very important to help determine the amount of coverage that you might want your health insurance company to provide you.
There are many things that go into determining what kind of coverage that an individual or family might need. As we know, everyone’s spending plans/habits are unique based on their goals, needs and wants. The same concept applies to how people determine how much coverage that they need. Take my mum for example; she pays a lot for her health insurance plan because she wants to make sure that the family’s health expenses are covered. Also, she has a pre-existing medical condition; as a result she pays more money than some of her colleagues to make sure that she her health insurance plan covers her routine medical visits, blood work, prescriptions, etc.
In addition to that my mum pays into a health spending plan account that gives her money to cover co pays and other expenses that her insurance plan might not cover. Recently, I went to purchase new pair of eye glasses and had to pay $150 out of pocket after insurance, but because my mum had that spending account that cost was covered.
Everyone’s health insurance plan is going to differ, and without insurance the price of medical care can be very expensive. You never know when you might have a medical emergency; the last thing you want to be worrying about is the medical bill you will be paying due to your lack of health insurance.
In our society, having the right amount of medical insurance coverage is very important to an individual’s health and wellbeing. You never want to be under insured, because that can also lead to very pricey medical bills. You might not need this information now, but know that one day when you are searching for health insurance coverage or can’t afford health insurance coverage there are programs that are available to you. Also, make sure when you get health insurance coverage one day that you thoroughly read your plan to make sure that you have the right amount of coverage.