Health Insurance Basics
Health insurance helps cover the cost of medical care, from routine doctor visit to major surgeries. It protects you financially and ensures access to care when you need it.
Types of Health Insurance
- Employer-sponsored insurance – Often includes group plans with shared costs between employer and employee.
- Marketplace (ACA) plans – Government-regulated plans with income-based subsidies.
- Private plans – Purchased directly from insurers; may offer more flexibility but less subsidy.
- Medicare/Medicaid – Government-funded plans for seniors, low-income individuals, or those with disabilities.
How Health Insurance Works
Health insurance is a contract between you and an insurer. You pay a monthly premium, and in return, the insurer covers part of your medical expenses.
Key terms:
- Deductible – Amount you pay before coverage kicks in
- Co-pay – Flat fee you pay per service (e.g., $25 per doctor visit)
- Co-insurance – You pay a percentage of the bill (e.g., 20%)
- Out-of-pocket maximum – The max you’ll pay in a year; after that, insurance covers 100%
Why It Matters
- Helps pay for unexpected medical expenses
- Reduces cost of routine care and prescriptions
- Prevents medical debt from piling uo
- Encourages preventive care and early treatment
What Coverage Suits Your Needs?
Choose based on:
- Your health status and age
- Doctor/hospital preference (in-network vs. out-of-network)
- Medication needs
- How often you use healthcare services
- BUdget for premiums and deductions
How to Avoid Overpaying
- Compare multiple plans before enrolling
- Choose plans with in-network providers
- Use preventive care benefits (usually free)
- Don’t over-insure – choose coverage that reflects real usage.
Top 5 Most Important Health Insurance Tips
- Understand your plan’s deductible and out-of-pocket costs before you use services.
- Verify what’s covered before scheduling care
- Use online tools to track claims and costs
- Don’t miss open enrollment (unless you qualify for special enrollment)
- Avoid coverage gaps – lapses can mean higher costs or penalties
Ready to find the right policy? Check out our recommended providers