What is Health Insurance?
A Health insurance policy is a procedure within which an individual becomes eligible for the receipt of Health benefits through the undertaking of Health insurance coverage; akin to the traditional ideology of insurance, a Health insurance policy allows for supplemental protection offered that exists as a contingency plan in the event of unforeseen circumstances. Upon the formulation of an individual Health insurance plan, the individual covered under the Health insurance plan in question will furnish payment in exchange for Health insurance coverage.
Types of Health Insurance
Within the Health insurance field, there exist a vast expanse of options concerning the structure and components of a Health insurance plan; a large majority of Health insurance plans vary in accordance to the setting within which that plan is offered, the individual classification of the individual interested in coverage, as well as the type of coverage requested:
Managed Health Insurance vs. Fee-for-Service Health Insurance
Although the multitude of Health insurance plans and policies are subject to variation with regard to the individual applicant, the 2 overarching types of Health insurance plans – within which the vast majority of specialized insurance plans exist – range from general to private in nature:
General or managed Health insurance policies are furnished on a universal basis, typically fashioned in a uniform manner; this means that in the event that the individual recipients do not wish to furnish supplemental payment for specialized coverage, those recipients will be required to conform with the terms and conditions expressed within a general Health insurance policy
In contrast, a private Health insurance policy – also known as a ‘fee-for-care’ policy – is fashioned with regard to an individual applicant, and uniquely structured in a personalized manner in order to meet the needs of an individual applicant
Health Insurance Premiums vs. Health Insurance Deductibles
The following comparison is furnished in order to clarify the differences between these key terms:
A Health insurance premium is the amount of payment required by a prospective policyholder in order to finalize Health insurance coverage; the determination of an insurance premium will result from a wide range of classifications and detail, including the range of network, the type of coverage, as well as the profile of the individual seeking coverage.
A Health insurance deductible is an expressed amount of payment required by an individual policyholder prior to the enactment of Health insurance coverage – however, an Insurance deductible varies from an insurance premium. An Insurance premium is payment required by the policyholder in order to be eligible for coverage; in many cases, a premium is viewed in accordance to a fee for a service:
In contrast, a deductible is the amount of payment required by the policyholder prior to the furnishing of financial restitution enacted by the individual insurance provider
Oftentimes, the term ‘co-payment’ is used as a reference to a deductible – a co-payment furnished by an individual policyholder will be required in order to precipitate monetary coverage furnished by the individual insurance provider