Health Insurance Basics

Health insurance can seem complicated at first, especially since there have been many changes over the last few years. However, once you understand a few basics, it really isn’t that complicated.

What is Health Insurance?

Health insurance is a plan that you can purchase that will provide you coverage for medical care. This can include things like surgery, doctor’s visits, hospital stays, medications, and more. The concept behind health insurance is simple: medical care can be expensive, and most people can’t pay for it out of pocket. So, people group together to each pay a set amount each month, regardless if they need it or not, and the risk of needing medical care is split amongst everyone. This is the basic principle of how health insurance works.

Do I really need it?

Yes! Even if you are an incredibly healthy person, you still run the risk of being seriously injured. Healthy people are in accidents, need stitches, or get sick all the time. There are many things you just can’t control. So, everyone needs and should have health insurance.

What if I have a health problem?

Currently health insurance companies can’t deny anyone coverage because of preexisting health conditions.  This allows everyone to get health care coverage.

Terms you should know

There are many terms that are used in conjunction with health insurance, and it is important to know these so you can better understand your coverage.

  • Deductible

The deductible is the amount of money you must spend on health care before your insurance policy will cover the expense. The deductible could be anywhere from hundreds of dollars to tens of thousands. The size of your deductible will change how much your monthly payment is.

  • Premium

Premium is the amount of money you spend each month for your health insurance policy

  • Co-pay

Co-pay means that you pay a portion of medical costs, and the insurance company will pay the rest. Some insurance plans have co-pays, and this is something you will want to check into. So be aware that you may not have everything covered when you need medical care.

  • In-network

This is an important portion of your policy, since not every health insurance policy will cover all doctors and hospitals. You will want go to doctors or hospitals that accept your health insurance. If you don’t, then you may have to cover the entire amount on your own.

There are many other terms that can be helpful, but these are some of the most important! The other important thing to do is talk to a health insurance agent! You don’t have to be an expert in health insurance! It is completely free to work with me, and you’ll find the best health insurance policy for you!