Health Insurance

Health Insurance (pronunciation: /ˈhɛlθ ɪnˈʃʊrəns/) is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly.

Etymology

The term "Health Insurance" is derived from the English words "health" which means the state of being free from illness or injury, and "insurance" which is a practice or arrangement by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment.

Related Terms

Insurance: A contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
Premium: The amount of money that an individual or business must pay for an insurance policy.
Deductible: The amount you pay for covered health care services before your insurance plan starts to pay.
Co-payment: A fixed amount you pay for a covered health care service after you've paid your deductible.
Out-of-pocket maximum: The most you have to pay for covered services in a plan year.
Health Maintenance Organization (HMO): A type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO.
Preferred Provider Organization (PPO): A type of health plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers.