How does health insurance work?

Health insurance in Texas works by providing coverage for medical services to individuals, families, and businesses. It helps protect people from high out-of-pocket costs that can occur when unexpected medical bills arise. Health insurance plans in Texas typically cover preventive care, emergency services, hospital stays, laboratory tests, medical equipment, and prescription drugs. To get health insurance, people apply for a plan through the federal or state health insurance marketplaces, an insurance broker, an employer, or directly with an insurance company. After enrolling, the insured pays a monthly premium and typically satisfies a deductible, which is the amount of money that must be paid out of pocket before insurance coverage begins. Once the deductible is satisfied, insurance helps cover the costs of medical services. Most plans have copayments, which are set amounts paid by the insured for services. Coinsurance, which is a percentage of the cost paid by the insured, may also be required for some services. After a certain amount is spent out of pocket, the insurance company will typically pay the remainder of the bill. The cost of health insurance in Texas depends on the type of plan chosen. Plans available on the marketplace may offer subsidies to help some people lower their costs. Additionally, pre-tax dollars may be used to purchase health insurance through employer-sponsored plans, which can help reduce the cost of premiums.

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How does health insurance work?

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