Health insurance is a financial plan that covers medical expenses. It helps individuals and families manage the costs associated with illness, injury, and preventive care.

Types of Health Insurance

1. Employer-Sponsored Health Insurance:
   • Offered by employers as part of employee benefits packages.
   • Often includes a variety of plans with different coverage levels and costs.
2. Individual Health Insurance:
   • Purchased directly from an insurance company.
   • Offers flexibility but can be more expensive than employer-sponsored plans.
3. Government-Funded Health Insurance:
   • Medicare: A federal health insurance program for people aged 65 and older, as well as younger people with disabilities.
   • Medicaid: A joint federal and state program that provides health coverage for low-income individuals and families.¹

Key Components of Health Insurance

• Premium: The monthly or annual cost of the insurance plan.
• Deductible: The amount you pay out-of-pocket before your insurance coverage begins.
• Co-payment: A fixed amount you pay for a specific medical service, such as a doctor’s visit.
• Coinsurance: A percentage of the cost of a medical service that you pay.
• Out-of-Pocket Maximum: The maximum amount you’ll pay for covered medical services in a year.

Choosing a Health Insurance Plan

When choosing a health insurance plan, consider the following factors:

• Coverage: Ensure the plan covers the services you need, such as doctor visits, hospitalizations, and prescription drugs.
• Cost: Compare premiums, deductibles, co-payments, and out-of-pocket maximums.
• Network: Choose a plan with a network of healthcare providers that includes your preferred doctors and hospitals.
• Flexibility: Consider factors like telehealth coverage and flexible spending accounts.

Maintaining Good Health

In addition to having health insurance, it’s important to maintain good health through:

• Regular Check-ups: Schedule regular check-ups with your doctor.
• Healthy Lifestyle: Eat a balanced diet, exercise regularly, and get enough sleep.
• Preventive Care: Get recommended screenings and vaccinations.
• Stress Management: Practice stress-reducing techniques like meditation or yoga.

By understanding health insurance and taking proactive steps to maintain your health, you can protect yourself and your family from unexpected medical expenses.