Healthcare and health insurance are terms that are often used interchangeably. However, healthcare, which typically includes elements like emergency room visits, preventative medicine, and prescription drugs, is far different than health insurance which provides coverage for medical services.
Where it can get confusing is how care is delivered. Not everyone seeking health services has health insurance. those who have health insurance may not have private insurance, but may instead have health coverage through the government or memberships in organizations.
It is important to understand the similarities and differences between health care and health insurance before choosing a policy.
definition of health care
Health care is defined as efforts to maintain or restore mental, physical, or emotional well-being by licensed and trained professionals. typically includes primary, secondary, tertiary, and quaternary medical treatment. Medical care provided to patients may include any method or procedure designed to care for a patient.
also includes the diagnosis, treatment and prevention of diseases. health care is not just limited to traditional medicine. it also covers dentistry, optometry, pharmacy, nursing, allied health, and similar areas of health. Due to advances in science and technology, the field of healthcare has grown significantly in recent years.
The industry in which medical professionals or “practitioners” work is commonly known as the healthcare industry. The healthcare industry is made up of doctors, nurses, therapists, dentists, pharmaceutical companies, and hospital systems. When these professionals set the prices for their products and services, it has a direct effect on health insurance costs.
Through professional health care services, patients can not only receive treatment for their illnesses and ailments, but also receive the necessary guidance or treatments to prevent illnesses and ailments in the future.
types of healthcare
Primary care is the most recognizable type of care where you see your health care provider to address symptoms and medical concerns. Primary care is also responsible for coordinating your care with specialists.
Once your health care provider has referred you to a specialist, you will be in secondary care. this means that you will be cared for by someone who has experience in the field in which you have health problems.
If a patient requires hospitalization, they may be referred to tertiary care. This type of care requires specialized knowledge and equipment.
quaternary care is simply an extension of tertiary care. it is highly specialized and therefore only offered by certain providers and hospitals.
home and community care
Home and community care refers to a wide range of health services designed to meet a person’s medical needs, such as skilled nursing care, dietary management by a dietitian, and occupational, physical, or speech therapies.
Urgent care centers provide patients with easy access to medical care at times when their normal healthcare provider may not be available. Urgent care centers are often open outside of business hours, such as evenings, weekends, and holidays.
definition of health insurance
Health insurance is defined as a system of financing used for medical expenses. It is designed to help absorb or offset healthcare costs associated with a wide range of services, such as routine health examinations, unforeseen illnesses or injuries, inpatient and outpatient surgery, specialist referral visits, and prescription medications.
Health insurance policies generally fall into three main types: privately paid for by an individual, commercially arranged as part of an employee benefits package, or publicly provided as a service through social security. insurance policies can differ from company to company and each has its own unique set of criteria for providing coverage.
Health insurance can include coverage for a wide range of illnesses and injuries, including accidental loss, mental illness, and disability. With health insurance, the insured is generally reimbursed for expenses incurred due to injury or illness. health insurance premiums are deductible and the benefits granted do not include taxes.
Health insurance can be difficult to navigate due to constantly changing laws and different policies from one insurance company to the next. It’s important to know your options when comparing traditional health insurance and managed plans to determine which policy best suits your unique health care needs.
types of health insurance
basic medical insurance
Basic health insurance plans typically offer less coverage with the trade-off of lower premiums. After paying a premium for coverage, members receive enough funds to reimburse them for events like doctor visits, surgery, and lab tests.
major medical expenses insurance
Major medical insurance typically covers more than just medical appointments and surgical procedures. These plans may also cover other services like physical therapy, nursing home care, and rehabilitation, as well as prescription drug costs.
supplementary medical expenses insurance
Supplemental medical expense insurance is designed to help you pay for services and other out-of-pocket expenses that your insurance company won’t pay for.
disability income insurance
Disability Income Insurance provides periodic benefit payments to eligible disabled individuals who are unable to work. With this type of insurance, 45 to 65 percent of a person’s gross income is replaced tax-free.
long term care insurance
Long-term care insurance helps pay for the expenses associated with long-term care. often covers care that isn’t covered by medicare or medicaid.
critical illness insurance
Critical illness insurance requires the insurer to make a lump-sum cash payment if the policyholder is diagnosed with a specific illness from a predetermined list.
cash hospital insurance
Hospital cash insurance can provide financial protection by delivering daily cash benefits during the insured person’s hospital stay.
health care vs health insurance
While the confusion between healthcare vs health insurance may not seem important, knowing the differences between the two can have a big impact on your choice of policy. Health insurance, when understood, allows policyholders the ability to protect themselves from unpredictable future health care costs at a reasonable cost.
For more information on healthcare versus health insurance, or for help choosing a policy, contact a health insurance broker at bbg broker today.