Health insurance FAQ
Q: Is health insurance mandatory?
A: No. Health insurance is not mandatory in the United States. However, not having health insurance can put you in a very serious financial situation. Medical costs are very high and if you happen to have a serious health condition it may lead to astronomical bills after you visit a hospital. Having health insurance coverage will help you get adequate healthcare assistance without wasting huge amounts of money on it.
Q: What is health insurance is all about in the first place?
A: Health insurance is a contract between you and the insurance provider stipulating coverage of specific medical costs denoted in the insurance policy in return of a specific sum of money called premium. To put it simple, you pay the insurance company so that they would pay for your medical bills. Why complicating things when you can pay for your bills on your own? Well, if you have ever been to a hospital without health insurance coverage you have certainly observed how costly it turns out. Not everyone have thousands of dollars to spend on healthcare services. However, health insurance is much cheaper than the medical bills, and you only use the coverage included with the policy when you really need it. So it's a very good way to get adequate treatment without going bankrupt.
Q: What is better: group or individual health insurance?
A: That depends. Group health insurance plans are usually provided by employers, who pay a part of the premium, which allows substantial savings compared to individual plans. However, with group plans not all types of coverage or specific health conditions are included and you might want to get more. Individual health insurance plans allow tailoring the policy just as you like, giving you a greater degree of freedom but for a higher price. Quite often, if your employer does not provide group plans or you are self-employed, individual plans are the only options to get health insurance.
Q: How can I get cheap health insurance?
A: The easiest way to get cheap health insurance is to shop around. There are numerous sites where you can compare the quotes and conditions on health insurance plans from different providers, so getting the most competitive offer is fairly easy. You can also raise the deductible of your plan in order to lower the premiums. However, make sure that you set the deductible to the level you can actually afford, in order to avoid situations when you can't pay the deductible in order to receive healthcare services. Try modifying your plan if you can, by dropping specific types of coverage against conditions you don't expect to have anytime soon.