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Health Insurance - What It Is, And Why You Need It - Part 1
By: Brenda Carruthers-Smith
[Word Count: 591 words] [Viewed: 30 time(s)] [Don't forget to rate this article]
The purpose of health insurance is to help you plan for unexpected, costly
emergencies. Compare prices from leading insurance companies and choose the
affordable health insurance plan that's best for you. In other words, once
you've taken price into account, choose the health insurance plan that best fits
your needs.
History of Health Insurance
Market-based health care systems such as that in the United States rely
primarily on private health insurance. Therefore, health insurance was not
really "insurance." Instead, it was prepayment for the consumption of medical
care. Statehealthfacts.org provides the latest data on health insurance costs,
managed care enrollment, state consumer protection laws, and more.
Unsurprisingly, economists have found that rising health care costs correlate to
drops in health insurance coverage.
Millions of children don't get the health care they need because they have no
health insurance. The increasingly price of health care combined with the
increasing cost of health insurance has combined to create real problems for
many families.
Health Insurance Coverage
The most common way that Americans get health insurance coverage is through
their employer. Premiums are generally lower for group coverage. From an
employer's point of view, it is important to choose continuation coverage, or
the group health insurance coverage will end. Many employers currently continue
health insurance coverage for their workers for a limited time during spells of
temporary unemployment. This enables unemployed workers continue their health
insurance coverage during brief periods of joblessness. The eligibility rule
requires workers to have nine months of strictly continuous employment-based
health insurance coverage through their most recent month of employment.
As health insurance costs soar, employers cut benefits, or jobs disappear -
millions of people slip through the cracks and lose their coverage. Employers
might consider implementing a health insurance policy to recruit and keep good
employees.
If you are an employee, it is important to obtain proof of previous health
insurance coverage from your employer.
For couples and families, having your spouse receive health insurance in his or
her name, and including the family on the policy is desirable. International
students who are able to prove that they have comparable coverage under an
American health insurance plan may waive this requirement. It is important that
international visitors purchase adequate health insurance coverage for the
duration of their stay in the United States.
Group Health Insurance or Individual Health Insurance
The health insurance scheme could either be a personal scheme or a group scheme
sponsored by your employer. Employers use group health insurance benefits in an
effort to attract and retain quality employees. Restrictions on the use of
genetic information in health insurance may address the use of genetic
information in individual insurance, group insurance or both.
Cost of Health Insurance
Employees who work between 20-29 hours per week are eligible for health
insurance, but they are responsible for the total cost. Companies add the cost
of the fringe benefits, including health insurance, to the price of their
products and services. The cost of health insurance has increased dramatically
over the past decade, far surpassing the general rate of inflation in most
years. Sadly, with so few restraints the cost of individual health insurance and
medical inflation began to grow out of control. There is no such thing as cheap
health insurance but you may still be able to find low cost health insurance.
Health Insurance as a Fringe Benefit
Most people who work for large companies receive health insurance as a fringe
benefit. These days, most companies give the benefit of health insurance to the
employees.
(c) 2006, Brenda Carruthers-Smith
About the Author:
Brenda Carruthers-Smith writes occasionally on the topic of Health Insurance.
You'll find Part 2 of this article here:
www.medical-insurance-facts.com/health-insurance-plan.html
And for more information on health insurance topics, click here:
www.medical-insurance-information.net |
