Health insurance helps you pay for your health care costs. Having insurance can help protect you from high medical costs, and it may help cover expenses if you need unexpected care. It also can make it easier to have routine doctor visits and preventive care. Insurance sometimes helps pay for prescription medicine costs.
Health insurance pays some, but not all, of your medical costs. Some plans pay more of your costs than others.
Many people get a health insurance plan through their work. The employer often helps pay for the plan. Some people buy health insurance on their own, directly from an insurance company, rather than getting a plan through an employer.
The United States government provides health insurance for people who qualify, such as seniors, people with certain disabilities and health problems, and some people with low incomes. Medicare and Medicaid are government insurance programs that help pay certain medical expenses for people who are eligible.
There are different kinds of health insurance plans to choose from. To get the best care, it's important to read your insurance plan closely. Be sure you understand the plan's rules and costs, how it works, and which medical services are covered.
Private health insurance is often offered through employers or other organizations. Some employers offer only one type of health insurance plan. Others may allow you to choose from more than one plan.
Buying health insurance on your own, instead of getting a plan through an employer, usually costs more. You pay for the plan yourself, rather than sharing the cost with an employer.
Some insurance plans work with certain health care providers and facilities, which are part of the plan's network, to provide care at lower costs. This is called managed care. There are different kinds of managed care plans:
Indemnity (fee-for-service) plans are different from managed care plans. The choice of doctors or hospitals you can use for your care is not restricted. Your health care provider is paid a fee each time you get medical care covered by the plan. The costs you have to pay on your own (out-of-pocket) could be higher than they are with some managed care plans.
Medicaid is a state-run, government insurance program that helps some people with lower incomes pay for medical care. Medicaid pays your health care provider. You may have to pay a small amount for certain medical care.
Medicaid is available only to certain low-income people and families who are eligible. Rules about who is eligible and what services are covered vary from state to state. To learn more about Medicaid, go to www.cms.gov.
Medicare is health insurance provided by the government for people age 65 or older. People who have certain disabilities or health problems, such as long-term (chronic) kidney failure treated with dialysis or a transplant, also may get insurance through Medicare. It covers some, but not all, medical costs for people who qualify.
Medicare has four parts:
To learn more about Medicare, go to www.medicare.gov or call 1-800-MEDICARE.
When you are choosing a health insurance plan, carefully consider the plan's rules and policies. Find out the cost of the plan (premium), what medical services are covered, how the payments work, and how much choice you will have when choosing providers and hospitals. Ask for a summary of the plan's benefits.
Read the plan's brochure closely before you sign up. Ask questions about parts you don't understand. It may be helpful to know these terms:
It's a good idea to contact your doctor's office to find out which health plans are accepted and how the payments work.
Find out how your insurance covers medicine costs. In general, you'll pay less for generic medicines than for brand-name medicines. Some insurance companies require prior authorization from your doctor before they'll help you pay for a medicine. For instance, this may be the case if you'd prefer to take a brand-name medicine over a generic one in the same class of drugs. With some plans, you may have to pay more for medicines that aren't on the plan's list of preferred medicines (formulary). Some insurers cover medicines that are bought only at certain pharmacies.
A formulary may put drugs into three
groups, or "tiers," based on how much
your health plan will pay and how much
you will have to pay.
If you have a choice between plans, check what your co-pay for prescription drugs will be, the maximum amount the plan will pay in a year, and other details.
Some organizations, such as the National Committee on Quality Assurance (NCQA), give reports on insurance companies. This may help you choose which plan is best for you. Find out more at www.ncqa.org.
When you are choosing a health insurance plan, think about questions you want to ask. For example:
After you get a health insurance plan, keep your insurance card with you. Save your insurance company's phone number in your phone's memory so that you have it available.
Many plans require you to contact your insurance company before having an elective procedure, such as a surgery or certain medical tests, or for a hospital stay. If you have a medical emergency, get help for the problem first. After the emergency is taken care of, contact your insurance company as soon as you can.
Many people in the United States don't have health insurance. Although many people get insurance through their employer, many others don't have this coverage or can't afford the cost of health insurance.
Federally funded health centers provide medical and dental care for people who don't have health insurance. Health centers may offer services such as checkups, pregnancy care, immunizations for children, and other medical treatment. The amount you pay for care depends on your income.
Many states offer programs that help people get health insurance. Medicaid provides health coverage for certain families or individuals who are eligible. The Children's Health Insurance Program (CHIP) provides low-cost insurance for children whose families don't qualify for Medicaid coverage but cannot afford private insurance.
There are also ways to get help with medicine costs. Find out whether the drug company that makes your medicine has a patient-assistance program. Some companies offer free or discounted drugs for people who cannot afford them.
Find resources and information for the uninsured at:
This U.S. Health and Human Services website has information and tools about health insurance and the health care system. For example, you can find quality of care ratings for hospitals and other medical centers. You can learn about health care reform in America and health insurance options. You'll also find tips and tools for staying healthy.
The Medicare Rights Center is a national, nonprofit organization that helps people make the best use of Medicare. The center provides resources and information to help people understand Medicare and its benefits in order to get quality health care.
The Patient Advocate Foundation provides resources, information, and other services regarding access to health care and health insurance. This foundation helps patients resolve financial issues relating to health care costs.
Other Works Consulted
Roizen MF, Oz MC (2006). Take control of your health insurance. In You, The Smart Patient, and Insider's Handbook for Getting the Best Treatment, 1st ed., pp. 317–342. New York: Free Press.
August 13, 2012
Anne C. Poinier, MD - Internal Medicine
& E. Gregory Thompson, MD - Internal Medicine
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