Health insurance is essential because it helps protect you from high medical costs. It ensures that you have access to necessary healthcare services without facing significant financial burdens. It also provides peace of mind knowing that you have coverage in case of unexpected medical emergencies.

Health insurance works by paying a premium to an insurance company in exchange for coverage. When you receive medical services covered by your policy, the insurance company pays a portion of the expenses directly to the healthcare provider. You may be responsible for paying deductibles, copayments, or coinsurance as outlined in your policy.

There are several types of health insurance plans, including:

• Health Maintenance Organization (HMO): Provides coverage within a network of healthcare providers.
• Preferred Provider Organization (PPO): Offers coverage within a network, but also allows you to see out-of-network providers for an additional cost.
• Exclusive Provider Organization (EPO): Similar to an HMO but with limited out-of-network coverage.
• Point of Service (POS): Combines elements of HMO and PPO plans, allowing you to choose between in-network and out-of-network providers.