Health Insurance
In the 21st century, medical insurance is an absolute necessity. Medical costs have risen tremendously in the last 30 years and there is every indication that they will continue to increase in the near future. Most individuals, at some time in their lives, require major medical expenses, and inadequate insurance or even worse—no insurance—can lead to financial ruin. To avoid this, it is essential that individuals research the types of insurance and choose the insurance that fits their income and lifestyle.
There are basically two types of insurance offered in this country, a fee-for-service plan and Health Maintenance Organizations.
Fee-for-service plans cover only part of your medical bills—usually 80%—after a deductible has been met, and the insured (you) pay 20%. Some plans offer routine care, but most cover only major medical expenses with hospitalization.
The Health Maintenance Organization (HMO) provides care with a group of doctors contracted with the HMO. HMOs usually provide preventative and routine medical care only within the contracted physicians and facilities. The costs of care are covered by the HMO after a minimal payment, called a co-pay, is made by the insured at the time of treatment.
Once a person reaches 65 years of age, Medicare is available. Medicare is health insurance provided by the federal government. Medicaid is federal medical insurance for those whose income is below a certain level.
Medicaid is federal medical insurance for those whose income is below a certain level. Medicaid services may be rendered through clinics and hospitals, or in some states by individual physicians as part of a plan. Different states have different plans.
