Health Insurance: Where Does It Come From?

Perhaps you have your ideal health insurance plan already mapped out in your head and you’ve properly budged for it and everything. Now you want to begin comparing insurance quotes so as to find the best bargain possible. But the price of your policy will largely depend on where you get your health insurance from.

There are four basic sources of health insurance. Here is your guide to the different health insurance providers out there.

1. Medicare

You hear the term “Medicare” all the time in the news; it’s a political issue in every presidential campaign. But what is it exactly? If you don’t know the answer to this question, that probably means you are not yet 65-yrs-old, as Medicare is designed for those who are 65 and older and for those who have disabilities. Medicare is a federal health insurance program – hence the attention it gets in political debates! There are also ways a person can supplement their Medicare with a private insurance program though. In fact, this is an aspect about Medicare that has been gradually changing over the years.

2. Medicaid

Medicaid is another federally funded health insurance program, but it is for people of low incomes. You don’t have to be 65 to get Medicaid. Actually, children and pregnant women are the best candidates for Medicaid, as they are deemed the neediest. What is unique about Medicaid, as compared to Medicare, is that it is run by the State.

3. Individual policy

If you are self-employed, hired for contract pay, or simply employed by a company that does not offer health insurance benefits, then you will need to get an individual policy insurance plan. It is one of the more expensive plans out there. However, with an individual policy, you can essentially customize your benefits to suit your specific, personal needs. You also have more choice in what health care provider insures you. Still, an individual policy can be pricy and it is often difficult to qualify for one and even process claims.

4. Group policy

A group policy health plan is probably the most popular, as it is a lot more affordable and reliable than an individual policy. You typically obtain a group policy through your employment. The advantages are that you will almost always qualify, will get comprehensive coverage (with deductibles that can sometimes just be cut out of your paycheck), and you will have low premiums, if any at all. A major disadvantage, however, is that if you leave the employer, you may suddenly find yourself without health insurance; though in the 1980’s an act was passed that gives an insured person the choice of paying the premium themselves for a limited period of time. Another disadvantage of a group policy, though, is you get a broader, more general coverage, rather than something that might be more beneficial to your personal health situation.

So, now that you have a better grasp on where you will get your health insurance coverage from, you can better navigate your many choices for policies and be an informed buyer.