Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly.
It's
often provided by employers, but you can also purchase it individually.
In some countries, health insurance is provided by the government.
Having
health insurance can protect you from high medical costs, ensuring you
get the medical care you need when you need it. It can also provide
access to a range of specialists and treatments you might not otherwise
be able to afford.
The details of what health insurance covers
can vary based on the specific plan. Typically, health insurance plans
have a network of providers, and you may pay more for care from
providers outside this network.
Each health insurance plan also
has different cost-sharing elements such as premiums, deductibles,
co-payments and out-of-pocket maximums. Premium is the amount you pay to
your insurance company every month or year for your insurance coverage.
Deductible is the amount you must pay out of pocket for health care
services before your health insurance begins to pay. Co-payment is a
fixed amount you pay for a health care service after you’ve met your
deductible. Out-of-pocket maximum is the maximum amount you would have
to pay in a year for covered health care services. Once you've reached
this limit, your insurance will cover 100% of all your health care costs
for the rest of the year.
Many countries have laws that
require residents to have health insurance. Failure to have adequate
health insurance coverage can result in fines or penalties.
