There are two main types of health insurance in the United States:
The first type of health insurance is intended to cover unexpected and catastrophic medical expenses and generally provides benefits based on the amount of the medical expenses incurred. This is typically referred to as major medical insurance. Other plans like Medicare, Medicaid and HMOs also fall into this category.
The distinguishing characteristic of this insurance is that benefits are usually paid directly to the medical service provider, or they are paid to reimburse the insured for medical bills already paid
The second type of health insurance provides payment directly to the insured individual and may be used to cover any of the expenses typically associated with accidents and illnesses that are not covered by major medical insurance. This type is often called critical illness insurance or supplemental health insurance.
The most serious and immediate financial problem caused by unexpected health problems stem from a loss of income and out-of-pocket expenses rather than the medical bills. In fact, most people who are bankrupted because of health problems had adequate major medical insurance but inadequate insurance to cover loss of income and out-of-pocket expenses. Many people do not realize that the largest health care bills incurred by many of us in the final years of life are not covered by Medicare or major medical insurance.
MedSave.com can help you understand these types of health insurance. Because health insurance plans and the laws that control them vary from state to state.
To get started, browse any articles that relate to your specific situation, then get quotes from a few insurance plans.