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In the US any program that pays for medical expenses, fully or partly, privately or through some public scheme is called the health insurance. It is also called health coverage, health care or health benefits. Actually health insurance protects against injury or illness. It may include disability or long term nursing also.
It was a company called the Franklin Health Assurance Company of Massachusetts which first started health insurance in 1850 when they offered insurance against injuries arising from railroad and steamboat accidents. By 1866 sixty organizations began offering disability insurance. The first employer sponsored group insurance policy was issued in 1911. Apart from accident coverage, sickness coverage was started in 1890.
Today there are many organizations offering health insurance, each having their own terms and conditions. If you want to buy insurance you have to find out through research, internet or from friends and those who have bought insurance about the organization. There can be small loopholes in the procedure which you have to guard against. You have to read the full document before signing and buying the insurance. The conditions are all given in black and white and you have to be fully satisfied before you buy it. In return you have to pay premiums which are fixed at the time of purchase of insurance. The amount and the term of payment for the insurance as well as the frequency are decided at the time of purchase.
About 85% of Americans have health insurance. About sixty percent get health insurance through their employers and nine percent buy it directly. Several government agencies provide coverage to about twenty five percent of people. Health insurance pays for any illness as per the terms and conditions of the policy. Some companies pay the full amount while others may pay for certain illnesses and not for others. Some health insurance companies do not pay for dental health while others draw a line at body sculpting and plastic surgery performed for cosmetic reasons.
Once you decide on the company from whom to buy the insurance, you have to then decide the premium. Depending upon a lot of factors like age, sex and the health condition of the person, the premium is fixed. It may be paid for a couple of years or may be long term and the premium may be paid at fixed intervals. Some people may prefer to pay the premiums monthly; others may choose to pay it at quarterly intervals or even twice a year.
If you do fall sick or have to undergo some surgical intervention, or you have an accident and a disability, you can apply for the settlement. The company will pay you and settle the bills as per the agreement.