24th Nov 2009 by Michael Haltman
The simple answer is that health insurance is a safety net to cover medical costs, whether from a doctor or a hospital. Today in the United States there is much debate on how the program should work be it public (government) or private (companies).
In the old days of about 20 years ago health insurance was primarily the 80/20 variety where after a deductible the patient would be reimbursed for 20% of the doctors bill. It was the patients job to file the claims, not the doctors. Today the majority of coverage is managed care, where the patient pays a small copay and the doctor submits his bill to the insurance company, and will be reimbursed at the rate the insurance company will allow for that procedure.
Health insurance is expensive, a percentage of Americans do not have it, and the debate goes on.
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This answer is the subjective opinion of the writer and not of FinancialAdvisory.com