You buy health insurance for the same reason you buy other kinds of insurance: to protect yourself financially. With health insurance, you protect yourself and your family in case you need medical care that could be very expensive.
Having health insurance is important for several reasons. Uninsured people receive less medical care and less timely care, they have worse health outcomes, and lack of insurance is a fiscal burden for them and their families. Moreover, the benefits of expanding coverage outweigh the costs for added services. Safety-net care from hospitals and clinics improves access to care but does not fully substitute for health insurance. These findings are supported by much research, although some cautions are appropriate in using these results.
Types of health insurance
The differences among these plans include the choice of health care providers (doctors, etc.), out-of-pocket costs for covered services (the amount you will pay when you need healthcare) and how bills are paid. There is not one “best” plan for everyone. No one plan will pay for all the costs associated with your medical care.
There are three main types of health insurance plans:
- Indemnity plans (fee-for services)
- Managed care plans
- Government sponsored plans
