There are five types of health insurance: private health insurance, Medicare, Medicaid, CHIP, and Veterans health care. Each type of health insurance has its own set of benefits and coverage.
Health insurance can be broken down into 5 main types:
Group Health Insurance: This type of policy is typically arranged by an employer and covers any eligible employees, as well as their dependants. Group plans are often less expensive than individual plans, but they may offer fewer options.
Individual Health Insurance: This type of insurance is ideal for self-employed freelancers and independent contractors. These plans provide tailored coverage unique to each individual’s needs and can be subject to certain waiting periods and exclusions.
Short-term Health Insurance: Short-term policies are temporary insurance plans that offer minimal coverage for a specific period of time, like 3 or 6 months. They may be ideal for those in-between jobs, non-US citizens, or those who cannot qualify for traditional policies.
Catastrophic Health Insurance: Catastrophic policies are usually available to anyone under age 30 and offer limited coverage for major medical costs, like surgeries and hospitalization. They often have high deductibles and fewer coverage options when compared to other types of plans.
Medicare and Medicaid: Medicare offers health insurance coverage to individuals aged 65 and over, while Medicaid is a state-funded insurance program for individuals that have a limited income. Both of these policies provide basic coverage for hospital visits, medical bills, and prescription drugs.