What is Health Insurance and How Does it Work?

As we pursue our careers and aspirations, we need to prioritize our health. Aside from the fact that poor health might prevent us from achieving our objectives, medical illness, cost, and treatment can be expensive and drain our savings. Sometimes, depending on the severity of a medical condition, one may be forced to take loans to meet their medical needs. 

Health insurance offers an impressive strategy to protect yourself and your finances. Health insurance policies protect you from the mental and financial strain that occurs with a medical emergency. What then is health insurance, and how does it work?

What is health insurance?

Health insurance is an insurance policy that covers a given percentage of the expenses that may arise from treating and managing illnesses, diseases, and infections. It also covers medical consultation fees, medical checkups, vaccination, among other medical needs.

Like other insurance policies, health insurance requires that you pay a premium monthly or annually to the insurance service provider. Usually, the insurance company has a network of designated healthcare providers you can consult to enjoy health coverage. Patients who, for a reason, cannot consult with the designated healthcare providers may have to pay a higher percentage. It is important to note that some insurance companies are strict about consultation with other service providers and may outrightly refuse to pay for the services. On that note, it is essential to consult with your insurance policy service provider on their policies on consultation with external health care providers,

Health Maintenance organizations (HMOs) and certain insurance providers may require you to select a primary health care provider who oversees your medical care and treatment. This means that although there is a network of health care service providers, you would have to select just one to navigate your health needs. 

Health insurance may not offer coverage for all health-related services such as liposuction, plastic surgery. It is essential to consult with your service provider to ascertain what your health insurance would cover and the policies on their coverage. Some insurance companies might deny coverage for certain services if they did not pre-authorize them, for instance, surgeries. 

It is, therefore, important to note that, like most insurance policies, you cannot receive a refund at the end of the year if you do not use the services provided. However, you do not have to fall sick to enjoy the benefits of health insurance. You can enjoy medical check-ups, vaccination among other health services that would prevent you from falling ill.

There are different types of health insurance, but they fall broadly into two categories - private and public health insurance.

Private health insurance is run and provided by privately-owned insurance companies. They usually work hand in hand with private hospitals and health centres and have a wide range of services available.

Government-owned insurance is run and operated by the government, such as the National Health Insurance Scheme(NHIS) in Nigeria and Ghana. The government subsidizes the health care services for a premium which is paid monthly. Government-owned health insurance is usually available in federal and state health centres, including a few selected private health centres. 

You need to consider a few details when selecting an insurance service provider, either private or public. This would ensure that you derive the best benefits from your insurance policy.

Health insurance is an impressive strategy to protect your health and finances. Although some may argue that they may never need the services, it is a risk management strategy that protects you from the eventuality that you fall sick. When selecting a health insurance company, you should compare health coverage policies in selecting one that is effective for you. It is often said that health is wealth and without health, wealth is nothing. With insurance, you can protect what is really important - you.