Frequently Asked Questions About Health Insurance

What is health insurance?

Health insurance provides financial security in the event that an individual has medical expenses that they cannot pay. People will pay a monthly fee to a health insurance provider, which allows them a financial allotment for medical expenses that they may incur. When people acquire health insurance, they acquire financial stability in the knowledge that they will be covered if anything does happen to them.

Who needs health insurance?

Anybody who incurs medical expenses will benefit from health insurance in San Diego. Since everybody needs a doctor or a hospital at some point, and one never knows what might happen, everybody would benefit from and needs to have health insurance. This is particularly true since one does not want to put an extra burden on hospitals by being taken in without any insurance at all. This means that everybody needs health insurance.

Why do people need it?

Medical expenses can be very daunting. If an individual who does not have health insurance has to take a ride in an ambulance, they will need to pay a lot to cover that short trip. A few nights in the hospital will be a major expense. A surgical procedure will be a major expense. When people are diagnosed with some form of cancer or another serious illness, they need to know that they are not going to put their family into debt. People need health insurance because they do not want a medical crisis to turn into a financial crisis.

What are a deductible, copayment, and coinsurance?

Everybody needs to pay something to their health insurance provider. There are certain expenses that come with a health insurance plan. Though they are significantly less than they would be in the absence of health insurance, some of these expenses are deductibles, copayments, and coinsurance. A deductible is what an individual pays initially at the beginning of the year before their insurance provider will begin to make any payments. A copayment is when an individual pays a fixed amount toward a medical service. Coinsurance is when an individual pays a fixed percentage toward each service.

What happens if I do not get health insurance?

Under the Affordable Care Act, individuals will be fined when they do not get health insurance. They have to pay 1% of their total annual income when they do their taxes or pay a $95 fee (depending on which is higher). In 2016, the penalty has increased to 2.5% of one's annual income, or $695, whichever is higher. The penalty for an uninsured child is $47.50. These fees usually make it more affordable to get health insurance than to neglect it.