Why health insurance is necessary?

by Himani Mathur Content Writer

Illness or diseases can strike anytime as they are unavoidable in nature. The medical bills and hospitalization charges can be humongous. It can hurt especially those who are leading a retired life as they lack a steady source of income. This is where a well-rounded insurance can be more than handy. With a good health insurance you can certainly bring down the cost of your treatment and earn a peace of mind.

Medicare in US

Medicare is a health insurance program in US that pays for several health care expenses. It’s administered by the Centers for Medicare & Medicaid Services (CMS), a division of the U.S. Department of Health & Human Services (HHS). Medicare beneficiaries are typically senior citizens aged 65 and older. Adults with certain approved medical conditions (such as Lou Gehrig’s disease) or qualifying permanent disabilities are also eligible for Medicare benefits. Medicare is divided into four parts: A,B,C and D. Most US citizens earn the right to enroll in Medicare by working and paying their taxes for a minimum required period.

What is covered under Medicare Part A?

Medicare Part A is basically a hospital insurance. Part A covers inpatient hospital care, limited time in a skilled nursing care facility, limited home health care services, and hospice care. Most Medicare Part A beneficiaries don’t have to pay a monthly premium to receive coverage under this part of Original Medicare; this is called “premium-free Part A.” Anyone can be eligible for premium-free Part A, provided he or she has worked for at least 10 years (40 quarters) and paid Medicare taxes while being employed. Otherwise a monthly premium has to be paid. Medicare Part A typically doesn’t cover the full amount of the hospital bill, so the individual has to share a part of the cost.

Benefits of opting for an insurance cover

Ease the financial burden

As said previously medical expenses are going through the roof. The disease or illness is something which can occur any time. The expenses can really hurt those without a steady flow of income. However, with good health insurance coverage, the financial burden associated with treatment can be lessened to a great extent. If and when a person falls ill, the insurance will take care of the large part of his or her expenditure related to treatment. So, this is a huge plus of having insurance.

Access to funds

Another benefit of health insurance is access to funds. If an individual is in dire straits financially, he or she does not have to hold back on medical treatment. The person can go for treatment with the confidence that the health insurance plan will take care of the expenses subject to the sum assured and other terms and conditions. Without health insurance, few people would have the resources to pay for the treatment out of their pockets.

Brings positivity into one’s life

Having a health insurance policy can bring positivity into professional and personal lives. This is because the person knows that he will not be at the mercy of an illness that will cripple him physically and financially. With better treatment, the individual will be in a better frame of mind and body to fulfill responsibilities at work and home more effectively.

So, health insurance has become a must due to the escalating medical costs. An insurance coverage not only eases your financial burden but also improves your overall outlook towards life.