Many people find it tempting to go without coverage as health insurance costs a lot, particularly those who never get sick. In addition, with the high monthly cost and out-of-pocket expenses, people are unsure if they need health insurance.
When you rarely see a doctor and are financially tight, it may seem practical to eliminate health insurance expenses from your budget. Instead of worrying about the premiums and copayments, it’s tempting to think that you can pay for your medical expenses as you go.
However, this won’t be easy if you have an accident, a severe health condition, or an ongoing health problem, as the costs can increase significantly. For this reason, everyone should have some form of health insurance.
What is Health Insurance?
Generally speaking, health insurance is one of the best ways to pay for healthcare costs and medical expenses. But unfortunately, many people cannot afford to pay out-of-pocket for all their health care needs.
Health insurance is an easier and faster way to pay for your health care expenses and help you get the care and services you need.
Why Do I Need Health Insurance?
Health insurance provides coverage for medical care costs and protects you from costly expenses. Aside from that, it offers several benefits that you might need.
Access to Health Care
When you buy a health insurance plan, the insurance provider agrees to pay part or all of your medical expenses when you are hurt or sick.
Healthcare plans provide free preventive care, such as check-ups, screening, and vaccines. They also cover some expenses for prescription drugs. Furthermore, it helps protect the costs of managing any chronic diseases you may have, such as heart disease, diabetes, or depression.
Providers usually offer disease management programs for these conditions.
Most importantly, you have access to healthcare providers who can help you and provide you with the medical services you need easily and quickly.
Protects You From Expensive, Unexpected Medical Expenses
Accidents and emergencies may happen anytime. Therefore, it is essential to keep a budget for this situation.
However, if you do not have any savings, this can be a significant financial burden.
Emergency care, surgery, lab work, prescription drugs, scans, and examinations are just some of the costs that can add up quickly. To make matters worse, healthcare expenses can undoubtedly cause one to go bankrupt or turn down the care they need just because they cannot afford the out-of-pocket cost.
However, you will not have to face those expenses with health insurance as an individual. Instead, the insurance plan will help you cover the costs and navigate the confusion of medical billing.
How Health Insurance Coverage Works
In a nutshell, those with health insurance benefit from sharing the total healthcare costs with the insurance provider. For instance, here are some of the expenses that you will still have to pay:
Premium: This is a fixed amount you usually pay to your insurance plan every month, regardless of whether you have received medical care in that month or not.
Deductible: When you need medical care, the deductible is the amount you pay out of your pocket before the insurance provider begins to pay its share. Once you meet your deductible, the provider covers some of your medical care expenses.
Plans with low deductibles have higher premium costs, while those with higher deductibles have lower premium costs. Meanwhile, some offer preventive services and other care even before meeting your deductible.
Co-insurance: Co-insurance is a percentage of the costs you pay for a medical service. For example, your medical bill is £150, and you’ll need to pay 20% of that. Therefore, you will still need to shoulder the £30 while your coverage pays for the rest.
Co-pay: This is a fixed amount you will pay for medical services. For instance, medical consultations may cost £150 if you do not have health insurance.
But if you have one, you may only pay £25, and the plan would cover the rest of your medical expenses.
What Will Happen If You Do Not Have Health Insurance?
Several things may happen if you do not have health insurance, such as:
You will be responsible for paying the overall cost of your medical care if you get sick, injured, or develop severe disease.
You are more likely to turn down recommended preventive care to minimise your expenses.
If you do not acquire “Minimum Essential Coverage,” you may also have to pay a tax penalty.
Is Health Care Insurance Essential?
Health insurance may cost a lot, especially if you have to pay for the plan every month. However, it is essential to everyone. It protects you from the financial burden caused by expensive medical expenses and helps you get the best care you need.
It covers essential health benefits vital to maintaining your health and treating diseases. Also, you get free preventive care, such as vaccines, check-ups, and screenings, that are important in keeping your body healthy.
