Facts

• According to the U.S. Census Bureau, more than 201 million people had private insurance in 2008, which is down from 202 million in 2007. Also in 2008, 176 million people were covered under an employer-based plan and 87 million were insured through a government-sponsored program. More than 46 million people were without coverage that year, which was up from 45 million in 2007.
  
  

Types

• There are two main types of health care plans in the United States: Indemnity Health and Managed Health Care. Indemnity health plans allow its members the freedom to seek medical care from any doctor regardless of cost or location. Managed health care have three types of plans: Health Maintenance Organization (HMO), Point of Service (POS) and Preferred Provider Organization (PPO). These plans provide its members with a network of contracted physicians who perform services at a discounted rate. These plans can be obtained individually or through an employer-based plan. Government-sponsored plans such as Medicare and Medicaid are entitlement programs to those who meet age, health and income-level requirements.
  
  

Benefits

• Having health care insurance allows the insured(s) to seek medical help when they become ill or injured without worrying about paying the entire health bill. Those who have insurance can visit their physician to receive preventive care, which can catch diseases and other medical conditions in its early stages. Depending on the type of plan purchased, policy owners can take advantage of incentives that may be offered, such as discounts on premiums for having a gym membership.
  
  

Considerations

• When considering the applicant's costs for health insurance, insurers determine the premium amounts by reviewing several factors such as their age, gender, job occupation and health history. To lower premium payments, applicants can increase out-of-pocket expenses such as deductibles, coinsurance and co-payments amounts. Employer-sponsored plan premiums is based on the size of the group and the company's claim history. Members of government-sponsored health plans such as Medicaid and Medicare Part A do not have to pay premiums.
  
  

Warning

• Health insurance premiums have been rising steadily over the past decade. According to the National Coalition on Health Care, employer-based premiums have risen over 131 percent the last 10 years. The average premium share amount for employees is $3,515, up from $1,543 over the same time period. However if the applicant is considered too great of a risk by the insurer, coverage will be denied.