Healthy Life

What are Different Types of Health Insurance in USA?

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Introduction to health insurance in USA?

Health insurance is a form of insurance policy that usually covers the medical, surgical, prescription medication, and sometimes dental expenses incurred by the insured. Health insurance may compensate the insured for costs incurred from sickness or accident or pay the care provider directly.  

It is also included in workplace benefits packages as a way of enticing quality workers, with premiums partly paid by the employer but also often withheld from employee paychecks. The expense of health insurance premiums is deductible to the payer, and the benefits earned are tax-free, with some exceptions for S Company Workers.

What are the different types of health insurance plans?

What are the different types of health insurance plans?

There are different types of health insurance. Two main types are: 

  1. Private health insurance
    The US health system relies heavily on private health insurance by the Centers for Disease Control and Prevention or CDC. Researchers found that 65.4 percent of people under 65 in the USA have a kind of private health insurance coverage in the National Health Interview Survey. 
  2. Health insurance
    The state subsidizes medical insurance in exchange for a premium in this type of insurance. Examples of US public health insurance are Medicare, Medicaid, the Veteran Health Authority, and the Indian Health Service.

Some other types of health insurance are:

  • Amount: This is the amount of money you pay every week/month out of your check. Generally, a percentage is paid by your employer, and a percentage is paid. 
  • Deductible: This is the amount of money you must pay out of your pocket before your policy collects 100%. 
  • Copay: This is the amount of money that you have to pay for every time you meet a physician (i.e., check with a physician, test, take a prescription). 
  • Health maintenance organizations (HMOs): These are organizations that provide the insured directly with medical care. The policy generally consists of a dedicated primary care doctor who coordinates all necessary care. 
  • POS: A POS plan works as a combination of HMO with PPO. The insured may opt for coordination of any treatment by a primary care practitioner, treatment within the supplier network of the insurance provider, or using non-network providers. The plan type will determine treatment progress.

Top 3 health insurance providers in the USA

UnitedHealth Group
  1. UnitedHealth group
    UnitedHealthcare Group is by total lives covered the largest health insurance company. The provider offers a wide variety of products for some of the biggest companies, from individual health insurance to full employer benefits plans. In addition, its policies can be bought in all 50 countries.  Headquartered in Minnetonka, Minnesota, UnitedHealthcare. 

    United Healthcare has more than 1.3 million medical practitioners and medical professionals with more than 6,000 hospitals, as well as the most members. So you will have many options to choose from to be taken care of if you have UnitedHealthcare. 

  1. Cigna
    Cigna Corporation is the United States’ fourth-largest health insurance firm. Cigna is based in Bloomfield, Conn., and offers health and health insurance to firms worldwide. Cigna also provides dental, behavioral health, vision, supplementary health benefits, and Medicare/Medicaid retirement benefits, in addition to corporate health insurance policies and plans management.

    In Arizona, California, Colorado, Florida, Georgia, Maryland, Missouri, North Carolina, the United States, South Carolina, and Texas, Cigna currently provides individual health cover. 

CVS Health
  1. CVS Health
    CVS Health is an innovative healthcare company aimed at providing people with better healthcare. It is pioneering a new approach to total health through its medical services, plans, and community pharmacists.

    CVS has more than 9,800 retail outlets, close to 1,100 medical clinics, a pharmacy benefit manager of approximately 93 million plan members, a varied medical benefit service provider serving approximately 22,2 million medical members, and an established senior pharmacy company serving over millions of patients annually, and an expanding specialty pharmacy system.

How to get health insurance in the US?

How to get health insurance in the US?

In the United States, health insurance is a program that helps to pay for health expenses, whether through private, social, or government-financed insurance.  

This includes both private insurance and social insurance schemes such as Medicare, which pools resources and expands financial risk associated with the high medical cost to all of the population in order to protect everyone, as well as social welfare schemes, such as Medicaid and Children’s Health Insurance. There are a few things you need to take care of if you want US health insurance: 

  1. Where can I receive care?
    One-way health insurance plans control their costs is by affecting providers’ access. Providers include doctors, hospitals, labs, pharmacies, and others. Many insurance companies contract the service to plan enrollees at a more priced price with a specific network of suppliers. 
  1. Select the market place for your health plan:
    Most people get it through an employer with health insurance. You will not need to use government insurance or marketplaces if you are one of those people. Your company is essentially your place of business.

    You can find an alternative plan in exchange if your employer provides health insurance. But market plans are probably much more expensive. This is due to the fact that most employers pay a portion of the insurance premiums and the plans have an average lower total price. 
  1. Compare the plans
    One of the US health reforms is to introduce more standardization of insurance plans benefit (as defined by the Affordable Care Act). The benefits provided varied dramatically from plan to plan prior to this standardization. Some plans covered prescriptions; for example, others did not cover prescriptions. Plans in the United States must now offer a range of “essential health benefits.”
    • Services of emergency
    • Inpatient treatment
    • Tests in laboratory
    • Motherhood and childcare
    • Treatment of mental health and drug abuse
    • Care of survivors (doctors and other services you receive outside of a hospital)
    • Dental and vision care Pediatric services
    • Drugs prescribed
    • Preventing and treating chronic disease (e.g., some immunizations)
    • Services for rehabilitation 
  1. Compare costs
    The cost of out-of-pocket is almost as important as the network. Any plan’s benefit summary should clearly show how much you pay for the services out of your pocket. The federal marketplace website provides snapshots of these comparative costs, as do many government markets.

    It is useful to know a few words about health insurance. As a consumer, the deductible, copayments, and coinsurance constitute your share of expenses. Generally, the lower your premium, the more expensive you are.

How much does health insurance cost in the USA?

How much does health insurance cost in the USA?

The average national health insurance costs in 2020 are $456 per person and $1,152 per month for the family. However, the costs of the wide range of health plans are different. Understanding the connection between healthcare cover and costs can help you to choose the right medical insurance. 

You are located because the price will vary depending on the country and county you live in, which is one of the main factors for your individual insurance expenses.  

This is unfortunately not the only cost of the treatment you receive for most plans. When you access care, it usually also costs. This is deductible, coinsurance, and/or copayment costs (see definitions below) and represents the proportion of the amount you pay when care is received in your pocket. The more you pay in premium payment, the less you pay when you access care, which is the general rule of thumb. When you get care, the less you pay in premium, the more you pay. We examine the premiums for health insurance for 2021 in this table and how they differ according to the state in which you live.

StateMonthly CostAnnual Cost% Change from Average
West Virginia$ 712$ 8,54043.79%
New York$ 701$ 8,41341.64%
Wyoming$ 670$ 8,03935.34%
Vermont$ 649$ 7,78631.09%
Source: ValuePenguin

Will my US health insurance cover me in Canada?

If you are traveling in Canada, your health insurance policy will probably not cover you. You have a much higher chance of medical help on holiday or business trips to Canada than you would think. Up to 50% of people going to other countries need healthcare not covered by their home health insurance policy. 

Whether you visit Canada frequently or only once, you want to look at the concept of health insurance that covers you and your family during your travels.

different types of health insurance (FAQ)
  1. How does health insurance work? 

    Your health insurance protects you against paying full health care costs when you are sick or injured. It works the same way that you or your employer opts for your car or home insurance: every month, you or your employer opt to pay some rate or a premium. 

  2. In the United States, is health insurance free? 

    Thousands of Americans, including some low-income persons, families, and children, pregnant women, seniors, and people with disabilities, are provided with free or low-cost health coverage from Medicaid and Children’s Health Insurance Program (CHIP). 

  3. How do I get medical insurance in the United States? 

    Go to
    Contact the call office at 1-800-318-2596 or TTY: 1-855-889-4325. Call the Marketplace Center. 
    Find a local center for questions or apply in person. 
    To apply by mail, download an application form.


What are different types of health insurance

Health care can be very costly in the United States. A single visit to the physician’s office may cost several hundred dollars and, according to care provided, an average hospital stay of three days can cost tens of thousands (or even more). Most of us would not be able to afford to pay such heavy amounts if we got sick, particularly since we don’t know when or how much care we might need. Health insurance provides a means of reducing these costs to less.

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