Health insurance is one of the most basic needs an individual should go for in other to ensure great medical health care.

What is Health Insurance?

Here is the basic meaning of health insurance and its importance just as many companies may have it.   There's a much more deep-rooted explanation to it according to many sources. Wikipedia gave it a more maligned and clear definition.

Here it says that "health insurance is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses."Health insurance is an undertaken contract that needs an insurer to pay some or all of a person's healthcare costs in exchange for a premium.

It is also vital to note that health insurance literally pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

What are the functions of health insurance?

Health insurance has a very large bunch of functions but here I will be explaining a white few of them;

1. Financial cover for individuals with calamitous health events.

Health insurance, like car insurance, protects individuals from economic and monetary calamitous events.

Like house demolition, calamitous health events are both rare and difficult to predict, and their costs are far beyond most people’s means.

Drugs to treat sickness or multiple sclerosis can run more than $20 000 per month, a crushing amount for all but the few.

Organ failure requiring a transplant can lead to hundreds of thousands of dollars in costs. Policies aimed at improving this function of health insurance include capping annual out-of-pocket expenses, ending lifetime benefit limits, and ensuring coverage for people with preexisting conditions.

2. Wide access for small usage fees.

the more customary function of health insurance in America is far more similar to a club membership than car insurance.

In exchange for an annual fee, beneficiaries receive access to free or low out-of-pocket cost services, such as routine doctor visits.

These services are largely predictable—such as well-child visits for people with children or medication refills for people on lipid-lowering medications.

3. Negotiating health services.

Health insurers grasp their market power to obtain price concessions from clinicians or hospitals and health care systems or, alternatively, to screen out high-cost providers from their networks.

Covered patients benefit from these discounts even when paying out of pocket for services (with the exception of prescription drugs, for patients often pay list prices even when they have insurance).

4. Enhancing and ensuring the quality of clinicians and hospitals.

Both commercial and government insurers have developed measurement efforts that aim to monitor and improve the quality of hospitals. Examples include both quality ratings that help patients and plans select which hospitals to engage and exclusion of certain hospitals from providing types of services based on quality.

5. Nudging individuals toward staying healthy.

Health insurers for the past decade have experimented with benefit designs that encourage healthy behavior.

What are the types of health insurance?

There are different types of health insurance services that some individuals choose to apply for.

meanwhile, an Individual Health Insurance plan is basically for a single person.

As the name implies,that is to say it can be bought by a single individual. The individual who gets himself insured with this plan is compensated for the expenses incurred for illness and medical expenses.

These types of medical insurance plans cover all the hospitalization, surgical, pre and post medication expenditures till the insured limit is up.

1. Family Health Insurance.

Popularly known as the Family Floater Plan, however Family Health Insurance Policy secures your entire family under a single cover. Health insurance plans for family cover all the members of your family including your spouse, kids, and elders.

Only one member of the family has to pay the premium, and the entire family gets insured separately

2. Critical Illness Insurance.

The Critical Illness Insurance plan ensures the person by contributing a chunk sum amount of money for life-threatening diseases.

therefore as a result of this, at the time of buying the insurance, the chosen health problems are included, and if you get affected by any of the pre-selected conditions, you can claim your insurance.

3. Medicare health insurance hospitalization plans.

This is the most basic type of health insurance plan. It covers the cost of treatment when you are admitted to the hospital.  That is to say, the payout is made on actual expenses in the hospital when you submit original bills.
Most of these plans cover the entire family up to a certain limit.

Benefits of health insurance.

The cost of treating the illness can cause several financial strains on the savings you have accumulated over time. Today, the cost of medical treatment is constantly increasing.

When choosing a good health insurance plan.

Anyone who has a health insurance policy will tell you that buying one is one of the clever economic or monetary resolutions by any earning individual.

However, now that you have decided to buy a health insurance policy, you need to know how to select a good health insurance plan that will take care of all your needs.

Here is a list of benefits a good health insurance plan should offer you.

Protection against a large number of critical illnesses flexibility to choose your health cover. Moreover, No increase in premiums during the policy term even if your health condition changes long policy term that covers you even in your old large hospital network for easy access to medical treatment.

Summary.

However, as we all have come across health insurance and we come to know that health insurance helps to cover the medical expenses of the insured or the policyholder. The insurer pays for the medical bills of the policyholder which the insured pays yearly.