Health Insurance: Ensures That Applicants are Financially Secured

September 27, 2023

Health insurance is a product geared towards bearing the expenses of the applicant’s surgical, clinical, medication plan, and rarely dental treatment. It ensures that applicants are financially secure should they suffer from an illness or injury.

This form of insurance has numerous plan categories and packages, and companies often offer it as a part of employee benefits. The policy cost is typically affected by a combination of factors, including the selected plan, age, geographical area, tobacco consumption, the current state of health and background, gender, and whether the applicant has dependents.

The health insurance industry is constantly changing, not only in terms of price but also in terms of policy conditions. Today, health care goes hand in hand with the insurance providing people with medical assistance and a much-needed financial backup. Whether you are exposed to health risks or want to deal with health-related uncertainties, you must take care of long-term or temporary health insurance coverage.

Recovering from an accident or getting sick can occur randomly, but being prepared financially is a conscious choice. With numerous insurance companies available on the market, shopping for personal health insurance hardly requires any effort on your part. Nevertheless, understanding the process of acquiring suitable coverage is crucial for your financial planning.

The vast majority of working people get their health insurance with the help of their employers. Job-based insurance is usually offered not only to the employees but also to their families, which can make it a particularly appealing offer.

Depending on whether your employment-based insurance pays primary or secondary, you should also consider enrolling in Medicare. Several prevalent insurance options exist, including employment-based coverage, Medicare, Medicaid, and individual plans. Each option offers specific rates, benefits, and conditions. If you are looking for full coverage, it is possible only if you mix and match different policies.

Some of the plans, however, rule out the possibility of closing the gap or getting certain benefits. An insurance calculator and a quote comparison tool can significantly facilitate access to the available comprehensive list of rates and health plans. And that way, you can make an informed decision. However, to buy health insurance and make the most of it, you must understand the difference between plans.

Medicare Plans

When it comes to expanding the coverage options, combining Medicare and employer coverage is the right call. In this case, Medicare would often pay for around 80% of your medical needs, and the supplemental Medigap coverage would take care of the residual and out-of-pocket costs. Even though it seems simple, there is much more to learn about Medicare.

With Medicare, also known as Original or Traditional Medicare, clients can keep their healthcare costs foreseeable and affordable. Eligible clients should be 65+ or under 65 with disability insurance or a pre-existing condition called end-stage renal disease (ESRD). 


Traditional Medicare comprises Part A and Part B, and both are common and accepted by most hospitals and doctors within the US. Besides, they allow clients to schedule appointments with specialists without prior authorization, which makes it easier to get specialized medical assistance.

Part A, also called Hospital Insurance, is designed to provide coverage for patients formally admitted by doctors. This plan primarily covers in-hospital care and the skilled nursing facility’s services, like IVs, home health care, and hospice care. In some cases, Plan A can be premium-free.

Part B, also called Medical Insurance, covers the treatment of patients outside the hospital. In other words, it is suitable for those who have not been formally admitted, like patients requiring preventive care, laboratory tests, durable medical equipment, x-ray, and other similar health care services.

If you are looking for dental insurance, it is not covered by any of the Medicare packages. There are limited dental care services that can be performed under this policy but only in individual cases, such as jaw fractures.


In case you leave a job, get fired, or laid off, this type of insurance can help you get temporary coverage. In a nutshell, COBRA extends the coverage you had before the job loss for a limited amount of time. Any company under the federal government with 20+ employees is legally bound to offer this policy to eligible applicants.


To be an eligible applicant, you need to be enrolled in a group health plan by your employer, be fired, retire, or be laid off. Besides, if you have dependents, they can also qualify for this coverage. On a less positive note, you can also be eligible if you are a deceased employee’s spouse. While COBRA offers an extension of your previous insurance package, you should remember that it never includes supplemental coverage like disability or life insurance.

Medigap Plans

As a supplemental policy, private companies often offer Medigap to close any of the gaps in Medicare packages. The policy provides up to twelve sets of standardized plans tagged from A to L, which work only in combination with Original Medicare.

When picking a suitable Medigap plan, it is crucial to research and consider premiums, coinsurance, copayments, and outstanding deductibles in health insurance. Besides, the set of plans offered by this policy differs from state to state. Even more challenging is that age can be a crucial factor affecting the premiums.


On the bright side, some of the Medigap plans can come in handy if you are planning to travel abroad and need a single trip medical travel insurance. For instance, plans C through G can cover the emergency care received abroad. Apart from the difference in sets and rates, you should also bear in mind that buying Medigap excludes the possibility of enrolling in Medicare Advantage and the other way around.

Supplemental Insurance

When some of the health care costs cannot be covered by your standard policy, supplemental insurance comes into play. With this health insurance, applicants can choose any offer to help them deal with costs, from dental and vision insurance or sustainable care to specific conditions like kidney failure or a stroke. This type of insurance can sometimes be used to purchase medicine or food.

Medicare Advantage

Often referred to as Part C, MA Plan, or Managed Care Plan, this part of Medicare insurance aims to create perfect conditions by providing premium health insurance plans.


As a rule, all the plans offered by MA have different coverage restrictions, costs, benefits, and enrollment conditions. While several types of MA plans are available, each has a distinctive characteristic related to the specifics of its customer service.


As one of the most popular types of MA plans, HMO requires clients to select their primary care providers (PCP). To be an eligible applicant and enroll, you must have parts A and B of the Original Medicare. This plan has lower premiums than other popular plans but allows visiting the out-of-network doctors only for medical emergencies. Simply put, you are limited to a specific list of doctors and hospitals, also known as a local network.


With PPOs, you can access a more extensive network of hospitals and doctors, and you are not required to choose your PCP. However, out-of-network visits will result in substantially higher costs. When visiting in-network, applicants should expect lower out-of-pocket costs but higher premiums because of offered flexibility.


EPOs are considered more pocket-friendly than previously mentioned PPOs since they offer lower monthly premiums but, unfortunately, higher deductibles. This plan requires clients to stick with a local network of hospitals and doctors. Otherwise, the costs will not be covered.


Even though the point-of-service plans require their applicants to choose their primary care providers, they also let their clients pick where they want to get treated. However, out-of-network visits imply a referral from your PCP and less coverage.


Apart from the MA plans, there are also individual marketplace plans for self-employed people and options, offering a high level of freedom like the indemnity plan. The latter offers you to manage and control your health care. In other words, no need for a PCP and no network-related restrictions. With this plan, you might have to pay for medical services upfront and make a claim to receive compensation afterward.

There are multiple reasons to acquire health insurance, and if you also have dependents to take care of, you should carefully consider your medical needs to make an informed decision. When choosing a policy, discover the health conditions and aspects it covers and use the quote comparison tool to analyze all the rates, benefits, and costs.

Articles you may also find helpful:

  1. Insurance for Newlyweds: Is It Possible to Combine Health Insurance?
  2. A Practical Handbook on Health Insurance Coverage: The Best Rated Private Insurance Companies
  3. Healthcare Explained: How Does Health Insurance Work in the US?
  4. A Manual on How to Choose the Right Health Insurance Plan
Victoria Berezhetska

Victoria Berezhetska is a Content Lead at and an expert contributor to CoverExplore. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. At CoverExplore, she helps customers find the right educational material through easily digestible blog posts and buying guides backing their insurance coverage choice. Victoria covers diverse topics around digital and insurance marketing, including auto, home, health, and life insurance.

We will be happy to hear your thoughts

Leave a reply