Health insurance is a type of insurance used to protect a person from medical expenses incurred by loss, injury, or illness. There are many types of health insurance available in the market, covering a variety of needs. Health insurance is usually provided by two sources: the government, or private insurance companies. Insurance provided by the government covers a range of plans that have been funded by various levels in the government, such as at the local level, state, or federal.
Government provided health insurance has several categories: The first of which is Medicare, a program administered at the Federal level. Medicare helps fund the health costs of individuals aged 65 and above, although in many cases they also help those below 65 if they are living with permanent or long-term disabilities.
Medicaid, a state-run program, supports the less-fortunate and the needy. Examples of those who can qualify for a Medicaid program are the blind, the disabled, the elderly, and families with dependent children who have very little financial resources. The name Medicaid may vary from state to state but generally have the same policies.
Another type of government health insurance is the State Children’s Health Insurance Program, which is a state-run program as well. This provides quality health care to children from low-income families, and whose parents do not qualify for the Medicaid program.
The government also provides health insurance to the military, of which there are three subcategories. One is TRICARE or CHAMPUS, which stands for Civilian Health and Medical Program of the Uniformed Services. This benefits both active and retired members of the military as well as their survivors and families. The second type of military health care is CHAMPVA, a program which the Department of Veteran Affairs aids in shouldering financial costs of medical needs of qualified veterans, their dependents, and their survivors. And the last subcategory is the VA, wherein eligible veterans of the Armed Forces are provided medical aid by the Department of Veteran Affairs.
Depending on the state, they may also provide their own type of health insurance individuals with no insurance and who have low-income. The last type of government health insurance is the Indian Health Service (IHS), which benefits eligible American Indians. They can avail of medical services in IHS facilities, but the HIS also helps cover the costs of some health care services in non-HIS facilities.
On the other hand, an individual may purchase private health insurance as provided by a union or their employer from a private health insurance company. There are 3 types of private plans: employment-based, own employment-based, and direct purchase plans. Employment based is provided by a union or an employer to an individual and in some cases, his relatives. Own-employment based refers to persons who have their own businesses although only he can be covered by the plan. And lastly, direct purchase plans are those purchased directly from a private company by an individual.