Different Types of Health Insurance
Mastering Health Insurance in the USA :- Employer-sponsored: This is the health insurance coverage provided by your employer. It allows you to split the cost of monthly premiums with your employer and includes cost-sharing payments.
Individual and family plans Also known as Affordable Care Act (ACA) plans or Obamacare plans, these are available to everyone and can be purchased through state or federal marketplaces, health insurance companies, or brokers.
Medicare :- A federal health insurance program for senior citizens aged 65 and older. Beneficiaries can choose coverage through private insurance companies with Medicare Advantage plans (Part C) or through the government.
Short-term: Temporary health insurance plans that bridge gaps in coverage for a few months to three years in some states.
Dental: Separate dental insurance plans are required for routine dental care like cleanings or root canals.
Vision: Separate vision plans are needed for routine vision care such as eye exams, glasses, and contacts.
Major Health Insurance Terms Explained
- Premium: The amount paid each month to the health insurance company to maintain coverage.
- Deductible: The amount paid out of pocket before health insurance begins covering healthcare services.
- Copay: A fixed out-of-pocket payment for specific healthcare services or medicines.
- Coinsurance: A percentage of the cost of healthcare services or drugs paid out of pocket after meeting the deductible.
- Out-of-pocket maximum: A limit on the total amount paid out of pocket for healthcare in a year. Once reached, the insurer covers all covered care for the rest of the year.
Health Insurance Metal Levels
ACA plans are categorized into metal levels based on coverage
- Bronze: Plan pays 60% of covered care, and the individual pays 40% with high out-of-pocket costs and low premiums.
- Silver: Plan pays 70% of covered care, and the individual pays 30% with moderate out-of-pocket costs and premiums.
- Gold: Plan pays 80% of covered care, and the individual pays 20% with lower out-of-pocket costs and higher premiums.
- Platinum: Plan pays 90% of covered care, and the individual pays 10% with the lowest out-of-pocket costs and highest premiums.
Cost of Health Insurance
Health insurance costs vary based on plan type and coverage level. Premiums can change from year to year. According to a study by eHealth, the average premiums in 2023 are $484 for individuals and $1,230 for families. Prices depend on factors like zip code, age, gender, and more.
Where to Buy Health Insurance
You can purchase health insurance from different sources
- State or federal marketplace: Access plans through the official marketplace websites.
- Insurers: Buy directly from health insurance companies.
- eHealth: An independent online health insurance marketplace offering over 10,000 plans from 180+ insurance companies. Provides assistance in finding the right plan and offers customer support.
- Types of Health Insurance in the USA
There are two types of health insurance in the USA: private and public. Most people utilize a combination of both. Public health insurance includes Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP). Health insurance for dependents of international students is also available.