The Silver Lake Editors - Hassle-Free Health Coverage: How to Buy the Right Medical Insurance Cheaply and Effectively (How to Insure Series)

Health coverage refers to a collection of insurance policies and government programs which pay for a range of costsfrom doctors and hospitals to more specific needs, such as long-term care expenses or disability insurance (which replaces lost income if you cant work because of an illness or accident).

Health insurance doesnt just cover medical ex penses. It provides payment of benefits for the loss of income and/or the medical expenses aris ing from illness or injury. So, health insurance is sometimes called other things, like accident and sickness insurance or accident and health insur ance. The different kinds of health insurance cov erages vary according to the methods of under writing, the injury or illness covered, types of in surers, types of benefits and services provided, types of losses covered, and the amount of ben efits available.

When people refer to health insurance , they usually mean group insurance offered by employersinsurance that covers such things as medical bills, surgery, and hospital expenses. Insurance companies call this comprehensive or major medical coverage, because of the broad protection it offers.

When health insurance first appeared in the United Statesin the mid-1800sit was sold by casualty insurance companies on a stand-alone basis and as an add-on to life insurance policies. Early policies covered losses due to accidental injuries. Later ones provided benefits due to illness as well as accidents.

Today, health coverage includes insurance policies and government-provided benefits. Most consumers are familiar with some of these. The terms fee-for-service and managed care appear just about everywhere. The specific kinds of managed care plans health maintenance organizations (HMOs), preferred provider organizations (PPOs), and pointof-service (POS) plansare also fairly common. But what do these terms mean?

Both fee-for-service and managed care plans cover an array of medical, surgical, and hospital expenses. Most offer some coverage for prescription drugs; and some even include coverage for dentists and other providers. But because there are differences that will make one or another plan right for you, it is important to understand each kind of plan.