The Basics of Health Insurance

A health insurance policy is a contract between an insurance company and an individual or employer for health insurance. The contract stipulates the type and amount of medical expenses to be borne by the group insurance carrier and can be renewed annually or monthly.

The terms of the contract are set out in the contract prior to all payments and agreements. Colorado Health insurance also covers disability insurance, long term care needs and you can also take out life insurance.

However, this comes with certain obligations that take several forms:

Premium – the amount that the individual or sponsor (employer) must pay each month to receive health insurance benefits.

Deductions – the amount that a person or sponsor must pay themselves before the health insurance company pays them. The individual must reach the deductible amount (all medical expenses) before the insurance company starts paying.

Surcharge – the amount to be paid each time the service is used.

Exceptions – because not all services are covered, the person has to pay for services that are not covered by the health insurance itself.

Coverage Limit – Health insurance has a set dollar limit and will not pay more than that.

Whether you are insured as a company employee in group insurance or as self-employed in group insurance, the benefits are the same. That way, you no longer have to worry about getting sick. Your health insurance and bills are taken care of.