Keeping an impeccable body health is never that easy but very crucial. If only we can live all our lives without ever going through sicknesses then perhaps we would have no reason to buy a health insurance policy.
People who buy this policy without a quarrel understand the contingencies life can bring right when we are broke and desperate. There are many benefits that are associated with this kind of insurance policy.
Learn the basics of health insurance
Brief history
The concept of health insurance was proposed originally in 1694 by the Hugh the elder Chamberlen. Accident insurance only came up in 19th century and operated more like the modern disability insurance and was utilized in the United States by Franklin Health Assurance Company of Massachusetts.
Ahead of the development of medical expense insurance, patients had to pay to pay all other health care costs out of their own savings, under what is known as the fee-for- service business model.
During the middle to late 20th century, traditional disability insurance evolved into modern health insurance programs.
To date most comprehensive private health insurance programs cover the cost of routine, preventive and emergency health care procedures as well as most prescription drugs, though it was not always the case.
The predecessors of today's Health Maintenance Organizations (HMOs) originated beginning in 1929, through the 1930s and on during World War.
Definition
The term health insurance is generally used to describe a form of insurance that pays for medical expenses.
It is at times used more roughly to consist of insurance covering the disability, long-term nursing or custodial care requirements.
Health insurance policy
This is a contract between an insurance company and an individual. This policy can be renewable annually or monthly.
How it is provided
Health insurance can be provided through a government sponsored social insurance program or from a private insurance company. Also it can be provided through social welfare programs funded by the government.
How it can be purchased
It may be bought on a group basis; for example by a company to cover its employees or purchased by an individual consumer.
In each case, the covered groups or individuals pay premiums or taxes to relieve themselves from huge or unanticipated healthcare expenses.
Type and amount of health care costs
They type and amount of health care costs that will be covered by the health plan are normally specified in advance, in the member contract or Evidence of Coverage booklet.
Forms of individual policy holder payment obligation
The individual policy holder payment obligation can take several forms that include the following:
Premium - this is the amount of consideration or pay to the health insurance plan that the policy holder is expected to honor every month. It confirms the purchase of health coverage.
Deductible - this is termed as the amount that the policy holder must pay out own personal accounts ahead of payment from the health insurance plan.
In other words before the health insurer starts paying for the policy holders medical care, they might have to do it by themselves.
Co-payment - it is the amount that the policy holder must pay each time the doctor pays him a visit to issue prescription or whatever care out of his own savings.
Coinsurance - instead of paying a co-payment (fixed charge); the policy holder must pay a percentage of the total cost.
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