The purpose of health insurance is to help you plan for unexpected, costly emergencies. Compare prices from leading insurance companies and choose the affordable health insurance plan that's best for you. In other words, once you've taken price into account, choose the health insurance plan that best fits your needs.

History of Health Insurance

Market-based health care systems such as that in the United States rely primarily on private health insurance. Therefore, health insurance was not really "insurance." Instead, it was prepayment for the consumption of medical care. Statehealthfacts.org provides the latest data on health insurance costs, managed care enrollment, state consumer protection laws, and more.

Unsurprisingly, economists have found that rising health care costs correlate to drops in health insurance coverage.

Millions of children don't get the health care they need because they have no health insurance. The increasingly price of health care combined with the increasing cost of health insurance has combined to create real problems for many families.

Health Insurance Coverage

The most common way that Americans get health insurance coverage is through their employer. Premiums are generally lower for group coverage. From an employer's point of view, it is important to choose continuation coverage, or the group health insurance coverage will end. Many employers currently continue health insurance coverage for their workers for a limited time during spells of temporary unemployment. This enables unemployed workers continue their health insurance coverage during brief periods of joblessness. The eligibility rule requires workers to have nine months of strictly continuous employment-based health insurance coverage through their most recent month of employment.

As health insurance costs soar, employers cut benefits, or jobs disappear - millions of people slip through the cracks and lose their coverage. Employers might consider implementing a health insurance policy to recruit and keep good employees.

If you are an employee, it is important to obtain proof of previous health insurance coverage from your employer.

For couples and families, having your spouse receive health insurance in his or her name, and including the family on the policy is desirable. International students who are able to prove that they have comparable coverage under an American health insurance plan may waive this requirement. It is important that international visitors purchase adequate health insurance coverage for the duration of their stay in the United States.

Group Health Insurance or Individual Health Insurance

The health insurance scheme could either be a personal scheme or a group scheme sponsored by your employer. Employers use group health insurance benefits in an effort to attract and retain quality employees. Restrictions on the use of genetic information in health insurance may address the use of genetic information in individual insurance, group insurance or both.

Cost of Health Insurance

Employees who work between 20-29 hours per week are eligible for health insurance, but they are responsible for the total cost. Companies add the cost of the fringe benefits, including health insurance, to the price of their products and services. The cost of health insurance has increased dramatically over the past decade, far surpassing the general rate of inflation in most years. Sadly, with so few restraints the cost of individual health insurance and medical inflation began to grow out of control. There is no such thing as cheap health insurance but you may still be able to find low cost health insurance.

Health Insurance as a Fringe Benefit

Most people who work for large companies receive health insurance as a fringe benefit. These days, most companies give the benefit of health insurance to the employees.

(c) 2006, Brenda Carruthers-Smith