Health Insurance

What is Health Insurance?

Health Insurance is essentially a kind of insurance coverage that covers most of your medical and surgical bills in case of a medical emergency. The health insurance company estimates the risk by assessing the person’s overall health, financial status, and other variables, and then helps the insured create a financial plan.

This financial plan then dictates the amount of monthly premium that the person has to pay, which then distributes the cost and therefore also distributes the risk of paying an excessive medical fee in case of a medical emergency.

Why is Health Insurance Important?

Metlife Health Insurance is extremely important since it is essentially a relief from financial stress that can occur during medical emergencies and health issues. Since some countries like the United States of America have really expensive medical procedures and medications it helps people distribute the cost of their medical bills instead of paying an excessive amount of money at one point.

Furthermore, the importance of health insurancecan be seen by how it helps the insured pre-plan so that they don’t have to worry about expenses in case of an accident or any sudden medical emergency.

Types of Health Insurance:

There are different types of Health Insurance plans design for people according to their need. These include Private and Public Health Insurance plans. Public Health Insurance Plans, as the name suggests, are insurance plans that are put forward by the government. For example, Medicare in the US.

Private Health Insurance plans are put forward by Private insurance companies like the United Health Group in the US. It is important to note that the more expensive the insurance policy the more likely it is to be available within a greater number of providers.

Popular Types of Insurance plans include

  1. Fee for Service

The fee for service plan is also called the indemnity plan. The best thing about this plan is that it allows for the insured to choose the place they want to be treated in (i.e. the provider). This plan also leads to the insurance company approximately 80% of the costs and the insured has to pay the rest of the 20% which makes it an extremely convenient insurance plan.

  • Point of Service Plans (POS)  

The Point of Service health insurance plan is more concerned with the progress of the treatment. This means that it allows for the insured to choose whether they want to be treated by their primary care physician, any hospital in the insurance network, or even any hospitals and clinics that are out of the insurer’s network.

  • Preferred Provider Organizations (PPO)

As the name suggests, the Preferred Provider Organization health insurance plan allows the insured to receive treatment from any provider they choose.

This health insurance plan is similar to the indemnity plan. However, if the insured person chooses a provider that is out of the insurance company’s network then they might have to pay slightly more compared to what they would pay if they chose a provider from within the insurance company’s network.

Health Insurance in America

Health insurance in America is an absolute must for every citizen since the cost of medical expenses is very high. There are many people who have gone bankrupt trying to pay off their medical bills in America. Most American citizens rely on Private Health Insurance plans.

However, citizens from low-income families, older citizens, and war veterans who are not financially stable and cannot afford Private Health Insurance are given the option of Public Health Insurance programs such as Medicare and Medicaid.

Health Insurance in Lower Income Countries.

There are very few low-income countries that have the option of health insurance for their citizens.  Rwanda is one of those few countries that provide Health Insurance to its citizens at very low costs. They do this through community-based insurance plans which has led to a significant population of the country (i.e. almost 90%) having access to Health Insurance.

Health Insurance has repeatedly proven to be extremely effective in helping people get safe, cheap, and effective treatment throughout the globe. It is extremely common in developed countries such as the USA, UK, and Canada. Despite this, health insurance is not as common in lower income countries, however, efforts are being made to inculcate effective Health Insurance Plans in poorer countries. This will lead to improvements in their standard of living.

Thus, health insurance has proven to be an extremely useful initiative for all kinds of people around the globe.