Introduction
Health insurance helps an individual to insure himself against the risks of medical expenses. An estimate is taken out of the overall health of the interested individual, to see whether the person is capable of receiving an insurance individual health or not. This provides the insurer with a financial structure in the form of monthly premium, through which the person is at ease because he knows that his money is safe and available for healthcare benefits whenever he requires them. The insurance individual health was let out by government agencies, nonprofit entities and private businesses for their employees or for other individuals as well.
History
Basically an insurance individual health policy is a type of a contract between the insurance provider, which can be the insurance company or the local government, and the sponsor, which can be the employee or an organization. This contract is of the renewable sort and can also last for lifelong, in the case of private insurance. It can also be mandatory for the citizens. The amount to be paid as premium is decided in the contract and is written down in a member contract or in the booklet for private insurance, which is called the Evidence of Coverage. It can also be covered in the national health policy for public insurance.
Features
The insurance coverage is generally provided by the employer to its employee in the form of an ERISA plan, in which the insurance companies say that they do not engage in the act of insurance but they just administer it. These plans are not subject to the laws of the state and are governed by the federal law. The benefits and coverage details can be read from the summary plan description. The sponsor has a lot of obligation towards the insurer, which can be anyone, either the government or a private company; these are the premium, which is an amount the sponsor pays to purchase the health coverage. The obligation also includes the deductible, which is an amount the person pays out of his pocket. An example for this can be that the policy holders deduct $500 per year before the insurance individual health care is covered by the insurer. Co-payment is another amount which the insurer pays for a visit or service. This amount has to be paid each time a service is obtained therefore this is an amount which is paid frequently.
Tips and comments
Another amount which must be paid is the coinsurance, in which the amount that is fixed and a percentage of the total cost needs to be paid. Next is the coverage limit, in which the person insured has to pay any amount which is in excess of the health plan amount. The excess amount has to be paid, apart from this; some of the insurance companies have schemes which are annual or life time coverage maximum. If your case falls in these categories then the health plan will stop and the remaining payments must be paid at all costs. Insurance individual health is a good way to secure your future.
