How Health Insurance Works

Health insurance works by protecting your assets from the high cost of medical care. The united states currently are one of the countries with the highest healthcare cost. Without health insurance, if any of your family members fall ill, you can be exposed to the risk of losing your entire assets only with one bill.

Reason

Health insurance is necessary for Americans to pay for the high cost of health care. You will need it unless you are very wealthy, over 65 (you will be covered by medicare) or very poor (you will be able to qualify for Medicaid).

Everyone else will have to purchase health insurance in order to protect themselves from the risk of medical bankruptcy.

Choosing your health insurance

There are many health insurance companies that provide a lot of choices. There are a couple of important requirements that you have to pay attention to in order to keep you and your family ready for health insurance 2020:

The affordable act stated that out of pockets payment can not exceed $6600 for individuals or $13,200 for a family.

It can be quite complicated for you to pick the right insurance plan. A healthy person might want the lowest premium possible and a higher deductible.

History of health insurance

If you are asking for the reason that Americans are so dependable for medical care, it all happened after world war II. Before it, most Americans had no health insurance. The policies that existed only covered the cost of the hospital room and board.

After the war, however, the federal government instituted a wage freeze to curb inflation. But because that also implies that most of the companies can not raise the wages of their employees, they introduce additional benefits such as health insurance.

Now, there are many other systems that are adopted by other countries. Most of the European countries have adopted universal health care, where the government would pay for health care. The downside of this system is that it takes a long time to see a specialist or receive a non-emergency operation. However, by using this system, no one should have to worry about dying from a disease because they can not afford treatment.