The term health insurance refers to the kind of insurance policy which pays for the expenses made for medical needs. It included several divisions like the long-term nursing or covering disability or even the custodial needs. Health insurance can be availed either for an individual or for a group or family depending on the needs. In both the cases, premiums are calculated accordingly and paid over to secure themselves from any kind of health care needs and expenses.
The primary source of coverage of most of the Americans has been the private and also the not-for-profit health insurance. According to the estimations based on the United States Census Bureau, it has been found that around 84% of Americans have health insurance. In account to this, around 60% is purchased through the employer where as the rest of 9% percent get it themselves. Even government agencies provide coverage to about 27% of the individuals. The other estimation proves that around 41.2 million people in the US are not insured and the major reason has been considered to be high and expensive health insurance plans.
Some of the primary coverage offered includes that for the low income children, the seniors and also for those families who just meet their daily requirements. Some of the major programs include the federal social insurance program for disabled and seniors, Medicare, Medicaid and many others. Some of the public programs include the TRICARE which is the military health benefits, Indian Health Service as well as the Veterans Health Administration. There are also certain additional health programs and insurance started for those low income individuals in different parts of US.
The exact definition of health insurance cannot be explained as there are different formats available. Deductibles are often present with the health insurance policies which are the amount to be paid upfront before starting with the insurance policy. Co-payments are another option where the routine procedures get divided between the insured as well as the company so that they do not take up the entire expense from their behalf.
The major reason for the increasing cost of health insurance is mainly due to the rise in medical cost as well as the selection process. The major principle on which the health insurance revolves is that the insurance premiums are being paid by a huge number of healthy people and the money collected together pays the expense of the insured that gets ill. The entire phenomena keep continuing and the money keeps on rolling.