Loss of health means loss of productivity and if your condition doesn’t allow you to work, it can also mean unaffordable medical expenses. For this reason, health insurance is the best proactive approach to take timely preventive measures, such as routine checkups to avoid costly bills down the road.
Health insurance is a contract between you and the insurance company that allows you to make prior financial arrangements for unexpected illnesses, requiring expensive treatments. Although you are required to pay a monthly premium along with co-payments and deductibles, in some cases, the overall cost of healthcare expense may be far lesser than what you would have to pay out-of-pocket.
How the System Works
Health care insurance is a healthcare program managed through government agencies or private businesses. The insurance provider manages a pool of fund to divide the expenses among the policy holders in a program. The cost of those availing large sum of insurance is compensated by the ones taking none. Since every subscriber may not incur large unexpected expenses, the cost of the program is spread among individuals to make healthcare affordable for everyone.
People who are not covered through private insurance providers, like seniors and those with disability, may get healthcare benefits through government-run programs like Medicare, Medicaid, and SCHIP.
Health insurance may offer numerous benefits to individuals as well as the community, at large.
Health Insurance Can Reduce Your Financial Burden
Healthcare offers you financial support you may need at the time of illness or accident. Besides this, it may also help you prevent serious health issues by giving you convenient access preventive care, like periodic checkups, vaccines, and screenings, for maintaining a healthy life.
By reducing your financial burden, health insurance protects you against high medical costs in the event of an unexpected medical need.
Avoid the Penalty for Not Having Insurance Coverage
If you don’t have qualifying health coverage, you may be required to pay a penalty known as the individual shared responsibility payment. Qualifying coverage includes health insurance purchased from an insurance company or through Health Insurance Marketplace, coverage provided by your employer, and government sponsored coverage. As per the recent rate, you may be required to pay a penalty amounting to 2.5 percent of your household income or $695 per adult – whichever is higher – when you file your federal income tax return. This means, if you don’t have health insurance, you need to pay a penalty or pay for your healthcare yourself.
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