Health insurance is a contract between a company and a consumer. The company agrees to pay all or some of the insured person’s healthcare costs in return for payment of a monthly premium. Patients are responsible for deductibles and copays, and these can reduce the amount the company pays.
The contract is usually a one-year agreement, during which you are responsible for paying specific expenses related to illness, injury, pregnancy, or preventative care. It’s important to understand the various types of health insurance plans, such as those provided as employment benefits, government programs, and private options.
