Why Is Health Insurance Important?

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The Importance of Health Insurance

Health Insurance is one of the most important components of your overall financial plan. In an economy with rising costs including healthcare expenses, health insurance is a necessity to make sure your body, finances, and family are taken care of. First and foremost, you need health insurance to protect your personal and financial assets from a catastrophic illness or injury. Second, health insurance is important to help defray the cost of routine healthcare expenses. As overall healthcare costs continue to rise, getting the right plan is imperative. The Health Insurance Advisors has numerous programs to help people get quality health care at an affordable rate.

Health insurance is a legal agreement between an insurance company and an individual where the insurance company pays a portion or all the insured person’s healthcare expenses in exchange for a monthly premium. The health insurance coverage chosen by an individual will determine this. There are various types of health insurance plans that an individual can acquire:

  • Private health insurance offered directly to the individual
  • Public health insurance offered through the Market Place Exchange.
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Resources to Learn About Health Insurance

The process of finding and managing health insurance plans can be intimidating for many. However, there are numerous resources available to help evaluate, purchase and manage an individual policy. Here are 5 resources you can use in addition to this blog for health insurance information. These sources provide unbiased information that is meant to educate and promote greater understanding among consumers.

1. Health Insurance Agents

The first number you should call to learn more about health insurance is that of your Health Insurance Agent. The Health Insurance Advisors have a team full of experts to help you better understand health insurance. A health insurance agent is a good resource as he or she is a licensed professional who should understand all of the coverages being presented to you. You can check your agent’s license with the State Department of Insurance to determine if they are in good standing. A licensed health insurance agent is required to meet ongoing continuing education requirements set by the state to ensure they are up to date with the constantly changing health insurance marketplace. 

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2. Department of Insurance

Since insurance is regulated at the state level rather than the federal level, there is a separate department of insurance in each state. The National Association of Insurance Commissioners provides a good map of the country with a link to each state’s insurance department website. The department of insurance not only regulates health insurance companies and insurance brokers, but also provides valuable information for consumers. This agency can help explain the health insurance industry and assist consumers with claims issues. If necessary, the department of insurance will take disciplinary action on behalf of consumers.

3. StateHealthFacts.org

The Henry J. Kaiser Family Foundation’s Statehealthfacts.org provides free, up-to-date health data for all 50 states. Covering more than 700 health topics, Statehealthfacts.org is a great resource for information on healthcare reform and other issues.

4. National Association of Insurance Commissioners (NAIC)

The National Association of Insurance Commissioners (NAIC) is an organization consisting of the insurance commissioners from all 50 states. The NAIC works to set policy and standards for the health insurance industry and to serve as a resource for consumers. The NAIC website is another source of health insurance information for the average consumer.

4 Reasons You Need Health Insurance

The importance of individuals having health insurance cannot be understated, you need to consider being under the most appropriate coverage for the following reasons.

1. Better, Reliable Healthcare Provider Access

With proper health insurance, you will have access to the best healthcare providers because their fee is guaranteed by the insurance company. Enrollment in coverage supports the health and well-being of individuals and communities. This gives you more access and availability to treatments medicines and consultations.

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2. Less Expensive Care and Treatment

Having health insurance makes necessary treatment less expensive. When you purchase health insurance, you start benefiting immediately from network discounts, and insurance benefits. Even if your plan has a deductible, the out-of-pocket amount you need to pay before your coverage fully kicks in, you will pay significantly less for office visits than you would without insurance, assuming the health care providers you see are within your network. Some health plans offer reduced-price generic drugs and free disease management programs. In addition, having health coverage can help you to prevent or spot difficult and often costly illnesses early on.

3. Stay Healthy

Routine and Preventive healthcare helps you stay healthy. All plans purchased through the Market Place Exchange include free preventive care, such as annual check-ups and immunizations. Chronic disease management is also covered, and other health screenings are free, such as those for blood pressure, diabetes, cancer and depression. Even if you eat right, exercise and are currently healthy, the risk of accident or illness is always present. Having health insurance is essential for receiving treatment for health issues. Without insurance, many people cannot afford to pay for necessary medical care, which can lead to serious health problems down the road. 

4. Protect Your Emergency Funding

Having a health insurance policy can help you to protect your assets like your home and savings whenever an illness or injury that results in a high amount of expenses arises. You will be protected from dipping your hands into your savings, and you will be able to receive adequate health care and use your savings for its intended purpose.

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No one is immune to accidents, no matter how young or healthy they are. Having confidence and peace of mind comes from knowing you are covered in the event of an injury. This allows you to do the activities you love without stress or worry.

Many Americans Are Still Uninsured

The number of uninsured Americans has been dropping since the Affordable Care Act (ACA) was enacted in 2010. The ACA expanded Medicaid and offers health insurance to people who lack job-based coverage through a mix of subsidized private plans. Roughly 26 million people remain without health insurance in the U.S. Just under 2 percent of children are now uninsured. The difference between being insured and uninsured is just access to the right resources. Reach out to an licensed and certified expert today to make sure you are properly taken care of.

Impact of the Uninsured on the Health Care System

The high rate of uninsured individuals in the United States puts stress on the broader health care system. People without insurance often put off needed care and rely more heavily on hospital emergency departments, resulting in scarce resources being directed to treat conditions that could have been prevented or managed in a lower-cost setting. Being uninsured also has serious financial implications for individuals, communities, and the health care system.

In 2017, hospitals provided $38.4 billion in uncompensated care to patients, however they also absorbed an additional $76.8 billion in underpayments from Medicare and Medicaid. These factors dramatically reduce the resources available to hospitals to provide charity care. Collectively, if we all do our part to learn about and enroll in a health insurance plan, we can put less strain on the health care system and help everyone get the care they deserve!

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Health insurance is a policy for everyone, as it helps you to limit your medical expenses and get quality health care when the need arises. No one should jeopardize their health by not having health insurance coverage. It should be a high priority for everyone in all states to have health insurance and to live a healthy lifestyle!

If you are looking to learn more about health insurance from qualified experts, reach out to us today! Converse with an expert about the importance of health insurance. 

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