Health Insurance

What is Health insurance?

Health insurance - covers against the risk of incurring medical expenses among individuals. It is a type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured. Health insurance can either reimburse the insured for expenses incurred from illness or injury or pay the care provider directly. Health insurance is often included in employer benefit packages as a means of enticing quality employees.

Health insurance basics

Health insurance doesn’t always cover 100% of your costs. In fact, it’s designed to share costs with you up until a certain point, called the out-of-pocket-limit After you hit the out-of-pocket limit, health insurance will pay 100% of your health care costs.

There are a few ways that health insurance companies might share costs with you, and they make up major features of your health insurance plan that you need to be aware of: your deductible, your, yourand your out-of-pocket limit. We’ll discuss them in more detail in our “Key features” section below.

All health insurance plans need to cover the ten essential benefits. In addition to the ten essential benefits, health insurance plans must meet certain affordability standards, as well as other rules that vary on a state-by-state basis, in order to be included on a government-run health insurance exchange. Off-exchange plans, so called because they are not sold on government-run exchanges, must also cover the ten essential benefits and meet certain federal standards in order to be considered qualifying health coverage. These consumer protections closed loopholes that caused financial problems for policyholders in the past.

Through 2018, as outlined in the(the ACA, also known as Obamacare), all American citizens needed to have qualifying health coverage, fee on their federal tax return. The tax fee was calculated in one of two ways, and you would have paid whatever was higher:

  1. 2.5% of your household income or
  2. $695 per adult and $347.50 per child under 18

However, as of 2019, the individual mandate has been suspended. There is no longer any penalty for not having health insurance.

Who should buy health insurance?

Literally everyone should buy health insurance because medical expenses are simply too high to cover. Medical bills are a leading cause of consumer debt and related financial problems (e.g., bankruptcy and home foreclosure).