Health insurance is insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. It may be provided through a government-sponsored social insurance program, or from private insurance companies. It may be purchased on a group basis (e.g., by a firm to cover its employees) or purchased by individual consumers. In each case, the covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses. Similar benefits paying for medical expenses may also be provided through social welfare programs funded by the government.
By estimating the overall risk of healthcare expenses, a routine finance structure (such as a monthly premium or annual tax) can be developed, ensuring that money is available to pay for the healthcare benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity.
» How do I pick a health plan?
» What are my health insurance choices?
» Are there any other sources for covering medical expenses?
» Are there any specialty health insurance policies?
» What can I do if I am having trouble settling my claim?
» Should I participate in my employer’s health insurance program?
» How can I determine the quality of the insurance plan I am looking at?
» If my employer does not offer health insurance, can I buy an individual policy?
» How can I lower my health insurance costs?
» Can I deduct my health insurance premiums on my income tax return?
