Health insurance is a specific type of insurance coverage that covers medical and healthcare expenses. Health insurance reduces financial risk by reimbursing individuals or paying the provider directly for predefined costs in exchange for monthly premiums. Health insurance covers healthcare costs.
What are My Health Insurance Options?
In the US, the most common health insurance plans are PPOs, HMOs, and HDHPs. These plan structures are compounded with tiers, networks, and varying deductibles to create hundreds of coverage options for you to select from.
What Does Health Insurance Cover?
Health insurance is designed to cover all or a portion of healthcare costs. This often includes preventative care, doctor’s visits, prescriptions, lab work, or surgical requirements.
Health insurance coverage and cost varies greatly based on provider, tier and of course network designations. Finding health insurance is the easy part, understanding what your health insurance will cover might require some work on your end.
Do You Need Health Insurance?
That is up to you and your financial needs. While obtaining health insurance is still mandated, the penalty for not having it has gone away, so you can choose or decline coverage from your employers or from private health insurance providers.
Health insurance creates an opportunity to limit unexpected healthcare costs but requires you to pay set monthly premiums. These two costs are combined to create your yearly expected out-of-pocket health costs.
Finding health insurance that is right for you likely combines your medical and financial needs. Make sure you read the fine print so you are covered for all of your expected individual or family health costs.
This covers the basics for how to plan to health costs this year, but what about next year, or years to come? Don’t just think about health insurance costs one year at a time, consider long-term health savings options as well.
If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.