Health insurance has become a hot topic in the 21st century. Many can't afford coverage, and many others can only afford minimal coverage. Those with a limited budget may chose "basic health coverage."
Basics of Insurance
Insurance is a system in which medical costs are spread throughout a community of people by collecting a "tax" or "premium" monthly from everyone in the community. This collection of money is used to pay bills too large for an individual to pay.
Insurance may be obtained from a group plan, through an individual plan, through worker's compensation, or for special populations through government plans such as Medicaid or Medicare. Basic health insurance is usually through individual plans and may be either fee-for-service or managed care programs. Fee-for-service means the patient pays the doctor, and if there is an indemnity plan, then the insurance company pays the patient back for some or all of their expenses. In managed care, the physician works for a flat fee and is paid by the insurer directly. The patient may pay the overages.
"Basic"
"Basic health insurance" is not an industry-specific term. The term means different things in each state. In Colorado, for instance, "basic health insurance" refers to the government mandates to insurance carriers to offer four group health plans: the basic PPO, the standard PPO, the basic HMO and the standard HMO. Similarly, Washington state has a "basic health" care plan that is state sponsored and covers low-income people.
Generally, if someone says he has basic health insurance, he means that he has coverage that offers doctor office visits but may limit the number per year. It offers hospitalization coverage but only to a certain point and for certain types of conditions. It may also offer some emergency room and surgery benefits. Basic health insurance is designed for people in good health on a limited budget.
Supplemental
Someone who has basic insurance may also have supplemental insurance. This is a secondary insurance, meaning that the customer must already have insurance to obtain it. Under this definition, as a supplemental insurance, it covers much of the deductible and much of what is not covered in the first type of insurance.
Ideal Insurance
Ideal coverage goes beyond "basic" and is called "comprehensive." Insurance carriers describe it as "robust." It covers almost all medical treatments plus well-patient visits. It covers hospitalizations and specialists. The reason everyone doesn't have this coverage is because it is the most expensive. It also usually requires physical exams and no pre-existing conditions.
Considerations
Medical insurance plans vary widely. There are catastrophic programs, student health programs and short-term programs. There are also programs that exclusively cover specific diseases and conditions. Check with your local insurance agent to find out what basic health coverage is available in your area and determine what level of insurance best fits your health and financial status.
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