Health insurance is a risk management tool that helps people pay for sudden medical expenses. However, because it is a complex topic—and because it's been politicized since the passage of the Affordable Care Act (ACA)—many people struggle to understand how it works. To simplify matters, below is a description of what health insurance does and why you need it.

What Is Health Insurance?

In return for making a monthly health premium payment, health insurance pays some or all of a policyholder's medical expenses—including physician appointments, surgeries, and specialist visits. Some policies include vision and dental services or the cost of some pharmaceuticals.

Health insurance plans are normally purchased through private insurers, but some public—i.e., government-sponsored—plans are available, as well. These include Medicare, Medicaid, and Veterans Administration plans, as well as plans purchased through various state-run marketplaces set up in response to the Affordable Care Act. Depending on their income, buyers who get health coverage through their state marketplaces may qualify for government subsidies or tax credits. However, the window for obtaining subsidized coverage is only open from November 1 to December 15 each year.

Why Do You Need Health Insurance?

The ACA requires health plans to cover preventative care—like colonoscopies, mammograms, vaccinations, and cancer screenings—to help you catch problems early when there is the best chance of successful treatment. Also, it pays for expensive treatments you might otherwise not be able to afford, or that might cost so much the payments could leave you hard-pressed. The inability to pay crushing medical bills can lead people to file bankruptcy, which ruins their credit rating for years and inhibits their ability to buy homes, cars, and other significant purchases.

For expert assistance designing a quality health insurance policy, contact Texas Brand Insurance in Hubbard, TX. They have been serving clients in and around Hill County for more than 30 years and also specialize in home and auto insurance. Visit their website to request an appointment or call (254) 576-1180 to ask an experienced insurance agent for a quote.