How does health insurance work?

Health insurance works by providing financial coverage to individuals and families for medical costs. In Virginia, health insurance can be- provided by employers, through an individual policy, or through the state’s Medicaid program. When an individual or family is covered by an employer-sponsored health insurance plan, premiums are usually paid through payroll deductions from the employee’s wages. These plans often require employees to pay a portion of the cost of the premium, while the employer pays the rest. Individual health insurance plans are typically purchased through an insurance provider, such as an HMO or PPO. These plans usually include a deductible, which is the amount of money the insured person must pay out-of-pocket before the insurance company pays for any services. Individuals can also qualify for Medicaid, which is a government-funded health insurance program for those with limited income and assets. In order to qualify for Medicaid in Virginia, a person must meet certain income and asset requirements. Health insurance can be costly, but it is important to have coverage in order to be able to pay for healthcare services. With health insurance, individuals and families can receive the care they need without worrying about the financial costs.

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