Medical Insurance is a contract with a health insurer that protects the insured against medical costs.


Medical Insurance is a contract with a health insurer that protects the insured against medical costs. It is a type of insurance intended to cover possible future medical expenses, It can work as a catastrophic coverage, or as a more comprehensive coverage on higher premium plans. It can also be called Health Insurance. Medical/ Health insurance is required by law for those who can afford it in the United States.

MEDICAL INSURANCE | Types Of Medical Insurance

MEDICAL INSURANCE | Types Of Medical Insurance

Short Term Medical/Health Insurance

It is a type of temporary health coverage for those who are in between other options. Short term won’t protect members from the fee for not having health insurance under the Affordable Care Act (ObamaCare) as it doesn’t count as minimum essential coverage.  Short term also doesn’t have to follow other rules

Individual and Family Medical Insurance

Individuals and families have a number of private medical insurance options, and those without employer coverage may qualify for cost assistance or Medicaid..


Group and individual plans can be further classified as either fee-for-service or managed care. Cancer patients may have specific concerns, such as the freedom to select specialists that play a factor in choosing a health care plan. Fee-for-service plans traditionally offer greater freedom when choosing a health care professional while Managed care often limits a patient to healthcare professionals listed by the managed care insurance company.

Group health plans

A group health plan offers health care coverage for employers, student organizations, professional associations, religious organizations, and other groups. Many employers offer group health plans to employees and their dependents as a benefit of working with that particular employer (medical benefits). The employer may pay for part or all of the insurance cost (premium).

When an employee leaves a job he or she may be eligible for continued Medical insurance as a result of the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA). This federal law protects employees and their families in certain situations by allowing them to keep their health/medical insurance for a specified amount of time. The individual must, however, pay a premium to keep their insurance plan in effect.

It is important to note that COBRA only applies under certain conditions, such as job loss, death, divorce, or other life events. The COBRA law usually applies to group health plans offered by companies with more than 20 employees. Some states have laws that require employers to offer continued health care coverage for people who do not qualify for COBRA. Each state’s insurance board can provide additional information.

Medical Insurance, otherwise called Health insurance,  ranges from catastrophic coverage to high-end low deductible plans. Medical insurance is required by law in the US. Public, private, and subsidized private options under the Affordable Care Act make shopping for insurance slightly complex, but it also leaves a lot of room open to save money.

Catastrophic Medical Insurance

Catastrophic Medical Insurance is a type of medical insurance policy that assists with medical care costs in the event of a catastrophe or high-cost treatment. It has higher deductibles and early on out-of-pocket costs or only supplements a primary insurance in the event of hospitalization, but they have much lower monthly premiums than other types.

Minimum Essential Coverage

Minimum essential coverage is the type of Medical insurance an individual needs to avoid the fee for not having health insurance under the Affordable Care Act. It covers what counts and what doesn’t.

ObamaCare (the Patient Protection and Affordable Care Act)

ObamaCare, officially known as The Patient Protection and Affordable Care Act, is a healthcare reform law that changes a lot about the way medical/health insurance works in the United States. While the 1000 page law includes an overwhelming amount of changes, only a handful of key provisions that affect the average American.

Health Insurance Open Enrollment

Each health insurance type has an annual open enrollment period, below they cover open enrollment for individuals and families, Medicaid, Medicare, and more.

Health Savings Account (HSA)

An HSA is its member’s best friend if the member makes between 100% – 400% of the Federal Poverty Level. Tax-deferred dollars go in and tax-free dollars come out when one pays for care. It lowers one’s taxable income, helps him/her qualify for more subsidies, can roll over into his/her retirement account, and while it can’t give one back-rub… it can actually help pay for one.


Medical insurance is available to groups as well as individuals. Government plans, such as Medicare, are offered to people who meet certain criteria. Its purpose is to help people cover their health care costs. Health care costs include doctor visits, hospital stays, surgery, procedures, tests, home care, and other treatments and services.