Health insurance is a crucial component of managing healthcare costs and accessing medical services. It works by providing financial coverage for medical expenses incurred by individuals or groups, helping to alleviate the burden of paying for healthcare out of pocket.

There are several types of health insurance plans available, each with its own set of features and coverage options.

-Traditional fee-for-service plan, where individuals can choose their healthcare providers, and the insurance company reimburses a portion of the expenses.

-Managed care plans such as Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs), which typically require individuals to seek care from a network of approved providers to receive full coverage.

Another type is The Point of Service (POS) plan, which combines aspects of both HMOs and PPOs, allowing individuals to choose between in-network and out-of-network care.

Additionally, there are high-deductible health plans (HDHPs) paired with Health Savings Accounts (HSAs), which offer lower premiums in exchange for higher deductibles, along with tax-advantaged savings for medical expenses.