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Group Health Insurance Coverage

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Health Insurance

Health insurance works by estimating the overall risk of healthcare expenses and developing a routine finance structure. It may be provided through a government-sponsored social insurance program, or from private insurance companies. A Health insurance policy is a contract between an insurance company and an individual. The contract can be renewable annually or monthly. The type and amount of health care costs that will be covered by the health plan are specified in advance. The US market-based health care system relies heavily on private and not-for-profit health insurance, which is the primary source of coverage for most Americans.

Insurance Coverage

Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims are known as "perils". An insurance policy will set out in detail which perils are covered by the policy and which are not. Below are (non-exhaustive) lists of the many different types of insurance that exist. A single policy may cover risks in one or more of the categories set forth below. For example, auto insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from causing an accident). A homeowner's insurance policy in the U.S. typically includes property insurance covering damage to the home and the owner's belongings, liability insurance covering certain legal claims against the owner, and even a small amount of health insurance for medical expenses of guests who are injured on the owner's property.

Health

Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.

Insurance

Promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company.



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