Carney Cargill, Inc. 375 NE Ericksen Avenue Bainbridge Island, WA 98110 Phone: 206-842-8987 Health Life Disability Long-term Care Employee Benefits

Learning Center

 Home About Us Apply Online Contact Us

Why Do You Need Health Insurance?

Today, health care costs are high, and getting higher. Who will pay your bills if you have a serious accident or a major illness? Carney Cargill, Inc. 375 NE Ericksen Avenue Bainbridge Island, WA 98110 Phone: 206-842-8987You buy health insurance for the same reason you buy other kinds of insurance, to protect yourself financially. With health insurance, you protect yourself and your family in case you need medical care that could be very expensive. You can't predict what your medical bills will be. In a good year, your costs may be low. But if you become ill, your bills could be very high. If you have insurance, many of your costs are covered by a third-party payer, not by you. A third-party payer can be an insurance company or, in some cases, it can be your employer.

The Evolution of Health Insurance:

Health care in America is changing rapidly. Twenty-five years ago, most people in the United States had indemnity insurance coverage. A person with indemnity insurance could go to any doctor, hospital, or other provider (which would bill for each service given), and the insurance and the patient would each pay part of the bill.

But today, more than half of all Americans who have health insurance are enrolled in some kind of managed care plan, an organized way of both providing services and paying for them. Different types of managed care plans work differently and include preferred provider organizations (PPOs), health maintenance organizations (HMOs), and point-of-service (POS) plans.

You've probably heard these terms before. But what do they mean, and what are the differences between them? And what do these differences mean to you?

Related topics:

» Where does one get health insurance coverage?
» What plans am I eligible for?
» Fee-For-Service (Indemnity Plan)
» Health Maintenance Organizations (HMOs)
» Preferred Provider Organizations (PPOs)
» Point-of-Service (POS) Plan
» Health Savings Accounts (HSAs)
» Dental Plans
» Vision Plans

Carney Cargill, Inc. 375 NE Ericksen Avenue Bainbridge Island, WA 98110 Phone: 206-842-8987