Other Health Insurance Options
Medicare/Medicaid
Medicare and Medicaid are forms of health insurance developed by the government in 1965 to amend the Social Security Act. Medicare is targeted at the elderly, and you must 65 years old, be disabled, or have kidney failure that requires dialysis. It has two parts. Part A is hospital insurance and pays for hospital stays and expenses accrued there. Part B is general medical insurance, covering other expenses not covered by Part A. Part A is paid for by a national fund for Medicare, while Part B is partially subsidized by that fund and partially draws money from the insured’s Social Security check that month. There are co-payments and deductibles, varying depending on a number of factors.
Medicaid is targeted at the poor and is a way for those who cannot afford health insurance to be covered. The major difference between Medicare and Medicaid is its administration. Medicare is run by the federal government and uses a national fund. Medicaid is administered by the states and uses national and state finances. State participation is voluntary, although every state has taken part in Medicaid since 1982. Medicaid covers a wider range of services than Medicare and has no deductibles or co-payments.
Short Term Health Care
Short Term Health Care generally lasts anywhere from one to six months. It is simply a temporary coverage that ends after the prearranged time period is up. It is best used for people who are between jobs, for young people after they graduate college and need to find a job, or for someone who hit the age limit on their parents’ policy and does not yet have a job. Short Term Health Care is generally like an HMO, although you are free to choose whichever doctor you wish.
When you visit a doctor and must pay for the treatment of an illness, you pay a deductible of anywhere from $200 to $2,000 dollars per illness. The insurance company will then pay 80% of the first $5,000 and 100% after that. One thing to remember when purchasing a Short Term Health Care policy is that if at the end of your period of coverage you wish to remain on the plan, you will more than likely not be able to. Usually you must purchase another policy.
Insure Kids Now is a government initiative to provide health insurance for all children.