Health Insurance Coverage - Protect Your Family From Financial Ruin

Health insurance is a special sort of insurance that can protect a family from financial ruin in case of serious illness to you or any of your family members. That is because the insurer pays the medical costs of the insured. Most of us do not have health insurance on our minds while we are busy living our lives from day to day, but it the very first thing we think about when someone in our family becomes ill or has an accident. There are a wide variety of factors relating to health insurance coverage in the United States, and they vary from state to state.

According to statistics from the US Census Bureau, approximately 85% of Americans carry some kind of health insurance. Many people, about 60%, are covered through their place of employment or through individually acquired health insurance. Roughly 25% of the American population is insured by federal or state government agencies, which may include various state funded health insurance plans in addition to Medicare and Medicaid.

Of concern to many people throughout America today is the rising costs of health insurance, which are largely due to the ongoing advances in the technology involved in medical care - advances that help people live longer and healthier lives. Another reason for rising medical costs is the fact that we now have more senior citizens than ever before in our country. The more frail, elderly population is more prone to illness than the younger, healthier segment of the population, thus requiring more medical care.

Yet another reason for the ever-increasing costs of health insurance is the fact that many individuals make poor choices that affect their health. These include factors such as exercise, nutrition, obesity, smoking and other negative behaviors. Add to this the fact that there are many rural areas that are sorely lacking in doctors and other health professionals.

Health insurance companies now offer people discounts and incentives to make wise choices and become healthier. Many health insurers will refuse to insure those people with pre-existing medical conditions, requiring applicants to provide a personal medical history and other health information. This information may address areas such as previous and current diseases, smoking, drug use and weight, by which providers determine one's financial risk to their company. Those considered at high risk are screened out. On a positive note, these considerations may encourage individuals to make positive changes in their lifestyles, such as quitting smoking.

Recently, due to the concern over pre-existing medical conditions, state and federal laws have gone into effect that protect such individuals so that they can acquire or maintain health insurance even if they change plans or providers. HIPAA (The Health Insurance Portability and Accountability Act) is a federal law, put into effect so that all health insurance plans, nationally, adhere to a common set of standards. Furthermore, health plans can be regulated state-by-state, having laws regulating group and individual health insurance coverage. This means that the laws regulating your health insurance protections may vary, depending on which state you live in. Bear in mind that despite these laws, you still may not have access to health insurance in every situation.

Should you leave or change your job, you may be able to remain in your previous group health plan for a certain period of time, under COBRA continuation coverage. While there are limits as to how much you will need to pay to continue such coverage, this can be of great help during times when you are between jobs or waiting for your pre-existing condition to be covered by a new health insurance plan.

Michael Benifez writes for http://www.LifeinPalmCoast.com, covering world of finance, mortgage loans, refinancing and insurance in Palm Coast, Florida and Flagler county. A recent article - Palm Coast Florida insurance covers insurance options for home, health and auto.