What Is Health Insurance?

Health insurance is a type of insurance coverage that typically pays for medical, surgical, prescription drug and sometimes dental expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages as a means of enticing quality employees, with premiums partially covered by the employer but often also deducted from employee paychecks. The cost of health insurance premiums is deductible to the payer, and the benefits received are tax-free, with certain exceptions for S Corporation Employees.

Healthcare has always been an issue with people of color. Unless one had a really good job with great benefits in most cases people of color suffered when it came to healthcare. In fact, before Obama set up the Affordable Care Act (ACA) nearly one in three Hispanic Americans and one in five Black Americans were uninsured, compared to about one in eight white Americans. When that ACA was signed it opened up the door for African Americans to have better opportunities and leveled the playing field for many to get proper insurance.

Healthcare and Black People

When Trump got in office, his main concern was to destroy that entire Act leaving the majority of people of color once again without healthcare.

This however doesn’t explain why health insurance is important. Many reasons why people of color are considered to have poor health or susceptible to so many diseases are because they don’t have healthcare to help them from preventing a lot of it. More importantly when we do have health insurance or care, we rarely use it again because of the bias treatment we receive often in the health and human services field. However, it is our right as Americans to demand to be treated fairly and push for the correct healthcare we deserve. So, why have health insurance?

Health insurance provides financial protection in case you have a serious accident or illness. For example, a broken leg can cost up to $7,500. Health coverage can help protect you from high, unexpected costs. For example, time you spend in the hospital, receiving care in many cases will be covered by at least 50% of the cost.

With Marketplace coverage, you’ll get access to preventive services like shots and screening tests at no cost to you. Getting recommended preventive services is a key step to good health and well-being. Most people of color avoid these preventive services and because of that they usually suffer from it much more reducing the quality of life.

When you apply for insurance using the Health Insurance Marketplace, you’ll find out if you qualify for savings that can make insurance less expensive. Before you apply, select your household size, state, and income range to see if you may qualify for financial help. Due to most people of color making less than most white counterparts they would usually qualify for the help. 

How Health Insurance Works

Health insurance can be tricky to navigate. Managed care insurance plans require policyholders to receive care from a network of designated healthcare providers for the highest level of coverage. If patients seek care outside the network, they must pay a higher percentage of the cost. In some cases, the insurance company may even refuse payment outright for services obtained out of network.

Many managed care plans—for example, health maintenance organizations (HMOs) and point-of-service plans (POS)— require patients to choose a primary care physician who oversees the patient’s care, makes recommendations about treatment, and provides referrals for medical specialists. Preferred-provider organizations (PPOs), by contrast, don’t require referrals, but do have lower rates for using in-network practitioners and services.

Insurance companies may also deny coverage for certain services that were obtained without preauthorization. In addition, insurers may refuse payment for name-brand drugs if a generic version or comparable medication is available at a lower cost. All these rules should be stated in the material provided by the insurance company and should be carefully reviewed. It’s worth checking with employers or the company directly before incurring a major expense.

Before you make a decision talk to a professional insurance provider. You can find one by clicking here.