Health insurance, or medical insurance, is a contract between you and a health insurer. It covers some or all of your healthcare costs in exchange for a monthly payment. The monthly cost of the insurance you pay is called the premium.
Having health insurance can be referred to as being covered or being insured. Health insurance can protect you from having to pay large medical bills. It is often better to pay the premium every month than suddenly get a huge bill from a hospital.
Health insurance plans typically pay for the following services:
- Medical visits and screenings
- Labs, imaging, and immunizations
- Mental health services
- Urgent care and emergency services
- Prescription drugs
Health insurance companies offer multiple plans for different premiums. Each plan has specific coverage and conditions for a set monthly premium. Some health insurance providers also pay for vision and dental care.
Often, the insurance company does not pay for all of the expenses. You might have to pay a deductible when you get care. A deductible is an amount you have to pay before your insurance starts paying for your healthcare.
You may also have to make co-payments for certain medical services and prescriptions. Each plan also specifies which doctors and healthcare facilities you can visit.