Types of Health Insurance in United States
October 29, 2010 | In: Health Insurance
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Health insurance is an insurance that pays for medical expenses, which also covers disability or long term nursing needs. In United States, there are THREE main types of health coverage, i.e. Public Healthcare Coverage, Employer-Sponsored Medical Insurance and Private Healthcare Coverage. In each case, the insured groups or individuals pay premiums or taxes to protect themselves from high healthcare costs. Now, let’s take a closer look at some facts about these 3 types of medical coverage.
Public Programs
These programs are aimed to provide the primary source of health coverage for most senior citizens, children as well as low income families who meet certain eligibility requirements. Below are some medical programs provided by the US government:
Medicare – An insurance program for senior citizens and disabled citizens
Medicaid – An insurance program for children from low income families
Children’s Health Insurance Program
TRICARE – A program that provides military health benefits
and many more
Employer-Sponsored Programs
These programs are fully paid for by employers on behalf of their employees as part of their employee benefit packages. According to the Centers for Medicare and Medicaid Services, nearly 100% of corporations in United States offer health insurance to their employees. There are about 60% of Americans and their families covered through their employers.
Private Programs
According to the United States Census Bureau, there are about 9% of Americans purchasing their own individual healthcare plans. The cost of obtaining this type of insurance is the highest among the 3 options. There are 2 main types of private coverage, i.e. managed health care and indemnity health plans. These 2 plans provide the choices between having health coverage at a reasonable cost or the flexibility to control medical care decisions.
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