What Does Health Insurance Do?

According to a 2009 report by the Centers for Disease Control and Prevention, more than 43 million citizens in the U.S. in 2008 were without health insurance, a rise of nearly 3 million since 1997. Though health insurance comes with sometimes expensive premiums, the risk is real for the 43 million Americans without health care, while the cost for the uninsured can be high.

Unexpected Illnesses

• On a very basic level, health insurance provides you with security against the unexpected illness or injury. Many people go without health insurance because they cannot afford the monthly premium or they feel they can do without because they are healthy. Many of the uninsured are young and healthy people. In fact, according to a 2004 briefing from Assistant Secretary for Planning and Evaluation, 63 percent percent of the uninsured are under the age of 34. Health insurance can give you access to a primary care physician, avoiding costly trips to the emergency room or critical care center, usually for the cost of a co-payment or perhaps a percentage of the services rendered.

Preventive Care

• Another feature of health insurance is providing options for preventive care. According to Insurancetree.com, many of those who are without insurance forgo annual check-ups and other preventive measures. Early detection is key for many diseases and conditions including cancer and heart disease and tests such as physical examinations, blood tests, and screenings can go a long way in discovering curable diseases before the condition worsens. Under most health care plans, annual physical examinations are covered at no charge and many medical tests are covered through a percentage of cost, holding down out-of-pocket charges.

Drug Costs

• Health insurance can also cover the cost of medication and maintenance drugs -- from inhalers for asthma to antibiotics to stave off infections. The cost of drugs and medications can be expensive but, with a health plan, you can abate those high costs through co-payments with your local pharmacy or through mail-in prescription services.

Avoiding Big Medical Bills

• Say you are involved in a car accident, for example, and are rushed to the hospital. You'll need surgery for a broken bone or an internal injury, resulting in an extended hospital stay and rehabilitation. By law, the health care institution cannot refuse you care, but, when it is time to pay the bill, you could find yourself in financial ruin without a healthcare plan. Health insurance, if nothing else, provides you with peace of mind from footing the bill for a hospital stay, surgery or some other medical treatment that could cost you tens of thousands of dollars. In some instances, you may exit your hospital stay not having had to pay a penny, but you need the health insurance coverage to avoid putting yourself into a situation where you are stuck with a medical bill that you cannot pay.