What is a Health Insurance policy?
A health insurance policy is a contract between an individual and an insurance company. The insured person pays a monthly or annual premium in exchange for the coverage provided by the health insurance policy. Health insurance policies typically cover medical care, hospitalization costs, prescription drugs, and certain other healthcare expenses that may arise.
Types of Health Insurance
There are different types of health insurance that can help you to pay for your medical care and related expenses. Some of the most common types include:
Medicare is a health insurance program for people 65 years of age and older, as well as for those with certain disabilities. It is administered by the Centers for Medicare & Medicaid Services (CMS).
Medicare consists of four parts: Part A covers hospital care; Part B covers outpatient care; Part C includes private health plans that offer additional coverage; and Part D provides prescription drug coverage.
Affordable Care Act
The Affordable Care Act, also known as Obamacare, is a federal law that requires all Americans to have health insurance. The law also provides subsidies for low-income individuals and families to help them afford coverage.
Short Term Health Insurance
Short term health insurance plans are designed to provide health coverage for a limited period of time. These plans are ideal for people who are between jobs and not eligible for employer-sponsored health insurance, or for those whose needs exceed the maximum duration allowed under COBRA guidelines. Here’s what you need to know about these plans:
Most short term health insurance plans last from 30 days up to 12 months. However, some insurers may offer coverage that lasts longer than 12 months if needed.