What Is Health Insurance?
Health insurance is a way to pay for health care. As with all insurance, a person pays a monthly premium and in return the insurer pays for some or all health care costs. Health insurance companies pool the premiums of people on the same plan to spread their risk. Healthier people have lower costs to the companies and counterbalance people with high costs.
The Affordable Care Act (ACA) of 2010 helped standardize affordable health insurance for Americans. It defined essential health benefits and mandated that nearly all residents have coverage. Congress repealed that requirement in 2017; however, some states still have an individual mandate.
Around 53% of Americans have employer-provided insurance, and a further 10% purchase their own insurance. (1) There are also public options including:
- Medicaid: For low-income people
- Medicare: For seniors and people with certain disabilities
- TRICARE: For uniformed service personnel, retirees and their families (2)
The Census Bureau found that 27.2 million people, or 8.3% of the population, were uninsured at some point in 2021. (1) In addition, research has found that almost one quarter of working age adults are underinsured. (3) This means that their coverage doesn’t allow them to affordably access health care.
Not having health insurance can lead to poorer mental health. Uninsured people have higher levels of overall stress. (4) In addition, only 38% of uninsured adults with symptoms of anxiety or depression receive treatment. (5) Individuals who find the best health insurance for their needs are much more likely to receive the care they require.
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Kaia Koglin is a blog writer on the Editorial Team at MentalHealth.com, contributing articles about positive affirmations and self-esteem for women and children.