Health insurance is an insurance that provides financial protection against sickness and injury. It includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment. There are two most common insurances—— Medicare and Medicaid.

Medicare

Medicare is a federal social insurance program that provides health insurance to people over the age of 65, individuals who become totally and permanently disabled, end stage renal disease patients, and some other special situations.

Medicaid

Medicaid was established for the poor people in 1965. Medicaid is a social welfare or social protection program rather than a social insurance program. It has been reported that the number of physicians accepting Medicaid has decreased in recent years because of lower reimbursement rates. Nowadays the Affordable Care Act has expanded Medicaid. The program covers everyone with incomes under 133% of the federal poverty level who does not qualify for Medicare. The federal government will fully fund the expansion of Medicaid initially, with some of the financial responsibility gradually devolving back to the states by 2020.

The United States health care system relies heavily on private health insurance, which is the primary source of coverage for most Americans. Health insurance is also important to individuals. Since people who lack health insurance are unable to obtain timely medical care, they have a 40% higher risk of death in any given year than those with health insurance. A study at Johns Hopkins Hospital found that heart transplant complications occurred most often amongst the uninsured and that patients who had private health plans fared better than those covered by Medicaid or Medicare.

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