In short, health insurance is a type of policy that covers a portion of your medical expenses. In addition to getting a plan for one person, you can also get a family plan that includes a spouse or children. This coverage is for anyone who needs help paying medical expenses.

Different types of plans exist.

1. Employer based coverage is obtained through your job. The employees and employer share in the cost of the premium.
2. Affordable Healthcare Act also known as Obamacare. These plans are purchased from a marketplace often at a discount.
3. Government Plans include Medicare and Medicaid. Medicare is for elderly people 65 and older and those with disabilities. Medicaid is for low income individuals and families. Medicare part A is typically free and Medicaid is free or in some cases low-cost.
4. Catastrophic Plans are high deductible plans that have lower premiums. This plan is attractive to some because of the lower premiums. But remember the tradeoff is a high deductible.


You will likely have to pay deductibles, coinsurance and co-pays. The deductible is what you pay before the insurance company does its part. Coinsurance is the cost you share with the insurer in covering your expenses. Your half will be less than the insurer’s half. You might pay 10 percent while the insurance company pays 90 percent. Your copay is a fixed amount that you pay for certain services before treatment.

Major Benefits

The best thing about health insurance is you get help paying your medical bills. Without coverage you might find it impossible to get the medical care you need.