Health insurance
Health insurance or Medical insurance is an important element of financial planning and security. It can help protect you and your family from the financial burden of medical bills if you become ill or injured. There are various types of health insurance plans available, so it’s important to research and compare the different coverage options available to find the one that best fits your needs and budget. A licensed health insurance agent or broker can help you evaluate and compare plans, so be sure to contact one if you need assistance.
A health insurance policy is:
- A contract between an insurance provider (such as a company or the government) and an individual or his or her sponsor (that is an employer or a community organization). In the case of private insurance, the contract can be renewed (annually, monthly) or lifelong. In the case of national plans, it may also be mandatory for all citizens. The type and amount of health care costs that the health insurance provider will cover are specified in writing, either in a member contract or "Evidence of Coverage" booklet for private insurance or in a national [health policy] for public insurance.
- (In the United States) There are two types of health insurance in the United States:
(i) Taxpayer-funded and
(ii) Private-funded.
An employer-sponsored self-funded ERISA plan is an example of a private-funded insurance plan. Generally, the company advertises that they have one of the major insurance companies. In an ERISA case, however, the insurance company "does not engage in the act of insurance," but rather administers it. As a result, ERISA plans are exempt from state law. ERISA plans are governed by federal law and are overseen by the United States Department of Labor (USDOL). The Summary Plan Description contains information about the specific benefits or coverage (SPD). An appeal must first be routed through the insurance company, and then through the Employer's Plan Fiduciary. If the Fiduciary's decision is still required, the USDOL can review it for ERISA compliance before filing a lawsuit in federal court.
Types of Health insurance
There are several types of health insurance plans available. These include;
- Employer-sponsored plans,
- Individual and family plans,
- Medicaid and CHIP,
- Medicare, and
- Short-term health insurance plans.
Employer-sponsored plans
Employer-sponsored plans are provided by employers and typically cover the majority of medical costs for the employee and their dependents.Individual and family plans
Individual and family plans are available for those who are not covered by an employer-sponsored plan, and may cover a range of medical costs.
Medicaid and CHIP
Medicaid and CHIP are government-funded programs that provide health coverage to low-income individuals and their families.
Medicare
Medicare is a government-funded program available to those aged 65 and over, as well as some people with disabilities.
Short-term health insurance plans
Short-term health insurance plans provide coverage for a limited period of time and can be an option for those who are not eligible for other types of health insurance.