One can hardly predict medical emergencies and dealing with endless bills and fees can be draining, both mentally and financially. But health insurance policies can take care of the latter.
Insurance has two classifications: commercial insurance and private health insurance. Read to understand these insurances.
What is Health Insurance
Health insurance is the kind that takes care of your weighing medical expenses when you find yourself in the hospital.
You could be suffering from several illnesses or ailments or could have met with an accident.
From hospital bills to medication and consultation fees, health insurance is what makes your life a little easier.
What is Commercial Health Insurance?
Health insurance policies that are not part of the government extended programs such as Medicare, Medicaid, Indian Health Service (IHS), the State Children’s Health Insurance Program (SCHIP), the Veterans Health Administration, or TRICARE fall under commercial health insurance.
For-profit companies and organizations are usually the ones who provide you with commercial health insurance. At times you might also find non-profit organizations offer you this insurance.
How Does Commercial Health Insurance Work?
When you apply for a commercial health insurance policy, the insurer asks you to confirm one of their offered plans.
You select one that offers you services that you can afford to cover under your monthly premium.
So, it would be best to keep in mind that the deductibles are also a factor in your decision-making.
When you visit the hospital, it checks if your insurance covers the services you need. Depending on that, they decide whether to charge you or not and, if yes, how much.
After submitting a claim to your insurance company for all the services you need, the insurer reimburses the charge to you.
What Is Private Health Insurance?
If a private entity extends a health insurance policy towards you, it counts as a private health insurance policy.
So, unlike commercial health insurance, this one is covered by a private organization. That leaves out state or federal governments as well.
Some of these private entities could include insurance brokers and companies.
How Does Private Health Insurance Work?
Like any other insurance policy you sign up for, you have a set of options before you. You can pick your choice depending on what you need and what you can afford.
You have several options and ways in which you can enroll for such health insurance policies. They are as follows:
- Licensed agents
- Group Health Plan offered by your employer
- Policies and plans related to federal and state marketplace
Following the procedure from before, you apply for one of these plans. And the next time you go to the hospital, the office checks out your health insurance policies.
If they are good for covering your bills and fees, your insurer reimburses you.
You can never tell when you might find yourself in a hospital, dealing with a severe ailment. And when you do, the need for financial security is very pressing.
Now, physical or mental stress can only be dealt with gradually. But what about all the swampy medical expenses? We might not always be able to cover them on our own.
Luckily for you, applying for the right health insurance policies can help you get rid of these financial burdens.