Health insurance is a way for people to get help paying for medical expenses. It works like this: you pay a certain amount of money each month to the insurance company, called a premium. In return, the insurance company agrees to help pay for your medical bills if you get sick or hurt.
When you go to the doctor or hospital, they send a bill to your insurance company. The insurance company looks at the bill and decides how much they will pay and how much you will have to pay. This is called a deductible, and it’s the amount of money you have to pay out of your own pocket before your insurance kicks in.
After you’ve paid your deductible, your insurance company will pay a portion of the remaining medical bills, and you’ll pay the rest. This is called co-insurance, and it’s usually a percentage of the bill.
Some health insurance plans also have a maximum out-of-pocket limit. This is the most you’ll have to pay in a year for medical expenses, and after you’ve reached that limit, your insurance will pay for the rest of your medical bills for the rest of the year.
It’s important to have health insurance because medical bills can be very expensive, and without insurance, you might not be able to afford the care you need. Health insurance helps make sure that everyone can get the medical care they need, even if they can’t afford to pay for it all on their own.
