Health Insurance

When you have health insurance, many of your expenses are paid when you receive preventive care services, such as yearly checkups and regular screening tests. Many medical providers and health plans will even remind you when you need preventive care. It is important because preventive care often makes it possible to identify any health concerns early, when there is plenty of time to treat the concerns and preserve your good health.

Health insurance can shield you from overwhelming financial strain, too. While medical providers keep costs down as much as possible, they are not able to completely eliminate high medical bills, especially with major illnesses or in the event of an emergency. If you have health insurance, you will have a great deal of assistance with covering your medical bills.

These two benefits—greater control over personal health and fewer medical expenses—are also offered to your family when they are a covered dependent under your health plan.

When you purchase a health insurance plan, you will pay a premium, which is a fixed monthly amount, much like you pay for car or life insurance. The premium is determined by the type of plan you have, as well as your age, your geographical location, and whether or not you use tobacco products. In addition, you may have to pay deductibles, copayments, or coinsurance amounts when you see your doctor or buy prescription drugs.

Generally, you will pay higher premiums for plans that include out-of-network benefits; plans that have low or no deductible, copayment, or coinsurance amounts; or both. You can choose to lower your monthly premium by purchasing a plan with a higher deductible. The type of plan you purchase should be determined by your anticipated health needs

Health insurance is tax deductible if you are self-employed or have a health savings account. If you are self-employed, the premiums that you pay for health insurance for yourself and your dependent can be deducted from your taxes. If your dependents are covered under another insurance plan, you cannot deduct that premium.

A health savings account (or HSA) is used in conjunction with a high deductible health plan. You typically must buy these plans from an employer, although they are also offered through private insurance companies. Any amount of money that you contribute to your HSA account, up to a certain limit, is tax deductible