A health insurance policy is a binding contract issued by an insurance company to an individual or group which promises to pay for health care reasonably required by the “insured” or “policy holder” to treat illness or injury. If the insurance policy is issued to an individual, the individual applies for the policy and pays the premiums either directly or through payroll deduction. Typically, in individual health insurance the individual policyholder is insured and also, in exchange for a higher premium, the insurance covers a spouse and dependent family members.
In the circumstance where the health insurance is obtained by an employer or a group or an association, the entity is the “group policyholder” and the covered individuals receive “certificates” of insurance. Generally, in addition to payment of premiums by the policyholder, the insured is also responsible for payment of deductibles and co-pays which are predetermined in the policy at set amounts or rates. Many of the companies quoted offer several different insurance plans to choose from. With most plans, basic coverage includes Hospitalization, major medical, emergency care & many offer prescription coverage. If you’re choosing a self employed health insurance plan, each Carrier will require proof of your self-employment though tax forms and a minimum of the first month premium.