Health insurance is a type of protection that helps people afford medical treatments, consultations, prescription drugs and other services that are often very expensive. In addition, it protects them against unexpected medical bills and debt. It can also help with a range of other related issues, such as mental health problems and disabilities, and enables them to access important preventive healthcare. It’s important to find a plan that is right for you and your family. Generally speaking, the more you pay in premiums (the monthly payments you make to the insurance company) the less you will have to pay out-of-pocket when you need care. Cost sharing is captured in the form of deductibles, copayments and/or coinsurance.

Deductibles are fixed upfront amounts that you must pay for healthcare before your health insurance starts to pay. These are usually based on the type of service you receive. For example, a deductible for an MRI might be $500. After you meet the deductible, the insurance company will then cover 80 percent of the costs until you reach your annual out-of-pocket maximum. Some plans may have different deductibles for different types of care.

Typically, when you choose a health insurance policy you must select whether or not to have a deductible. You should also consider the copays and coinsurance as well as any pre-authorization requirements. You should also look for additional benefits such as a 24/7 nurse line, telehealth services or discounts on wellness programs. It is also important to check that a specific healthcare provider is included in your plan.

You should also consider whether or not a particular procedure is considered “medically necessary.” In general, an insurance company will only cover healthcare that is deemed by a physician to be’medically necessary.’ This will often include care such as hospitalization and surgery for serious illnesses or injuries, as well as medications. However, there are a number of exceptions. These include elective surgeries and procedures, as well as experimental treatments that have not been proven to be effective.

Many studies have shown that having health insurance significantly reduces healthcare costs. This is because the costs of untreated illness are significantly higher than those that are treated. For instance, a study that followed matched cohorts of adults with hypertension who lost their Medi-Cal coverage and those who maintained it found that those without coverage suffered from more severe, and ultimately more costly, symptoms than those who had it.

While it is possible for some individuals to live without a medical insurance, most cannot afford the high costs of an unexpected illness or injury. In addition, it can also be very difficult to manage out-of-pocket healthcare expenses, especially in the long term. A health insurance policy can provide peace of mind that you and your family are protected against expensive medical bills, debt and even bankruptcy. It can also offer reassurance that you will be able to get the treatment you need quickly and efficiently.