Most people in America have some form of health or medical insurance. From Medicare and Medicaid to a typical employer plan, all citizens have access to insurance. They, therefore, don’t face high medical bills that prevent them from getting much-needed care.
Despite this wide acceptability and availability, there’s a lot of confusion around health insurance vs medical insurance. Since they serve the same general purpose, people often use the terms interchangeably.
To make sure you don’t join the ranks of those who confuse the two plans, check out this guide to learn the difference.
What Is Health Insurance?
Health insurance is a type of insurance that covers the cost of medical services. It helps individuals and families manage the costs associated with unexpected or unanticipated healthcare needs. It usually covers the following:
- doctor visits
- hospital stays
- preventive care
- emergency services
- some prescription medications
What Is Medical Insurance?
Medical insurance is typically more focused on specific medical treatments or procedures. It is designed to be used to pay for specific medical expenses like:
- prescription drugs
- dental treatment
- diagnostic tests
- long-term care
Medical insurance is typically offered by employer-based group policies or individual health plan policies and is designed to fit the financial needs of the policyholder.
Key Differences Between Health Insurance and Medical Insurance
The key differences between health insurance vs medical insurance come down to the following:
- type of coverage offered
- who pays for the treatment
Health insurance generally covers both doctors’ visits and hospital stays. Medical insurance focuses mostly on the cost of hospitalization.
Health insurance plans may cover preventive care and assist with the cost of prescription drugs, whereas medical insurance does not.
Additionally, health insurance plans may have one or more coinsurers. This means that the policyholder will pay part of the cost of each medical service. Medical insurance, conversely, is usually paid for by the policyholder.
In terms of cost, health insurance policies generally have higher upfront costs but include additional benefits such as mental health and telemedicine coverage. On the other hand, medical insurance policies often have lower upfront costs and provide coverage solely for hospitalization and related costs.
Which One Is Right for You?
When it comes to choosing between health insurance and medical insurance, it is important to consider your healthcare needs and budget. If you are generally healthy and do not anticipate needing frequent medical care, a medical insurance plan may be sufficient to meet your needs. However, if you have a chronic health condition or require regular medical care, a health insurance plan may be a better choice.
Read more here for more info about health insurance and medical insurance.
Health Insurance vs Medical Insurance
Health insurance and medical insurance are both important, but they are different, and it is important to understand the difference. Having both can provide greater coverage and peace of mind.
Be sure to research what options are available to find the best suitable plan for your needs. Don’t wait for a medical emergency. Get your coverage today!
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