What is ‘Basic Health Insurance’?

The benefits paid by health insurance are determined by the type of policy, and the way the policy is written. There are several types of health insurance policies available, including variations of Health Maintenance Organizations (HMO) and Preferred Provider Organizations (PPO) among others. Most types of policies have deductibles and copays, equating to out-of-pocket costs to see any doctor for any reason. However, a new type has been developed over the years which may appeal to many health insurance buyers, called Basic Health Insurance.

Basic Health Insurance is based on specific dollar amounts which limit the cash benefit. It provides automatic acceptance throughout the United States, without pre-authorization and other benefits that most types of health insurance lack. Pre-existing conditions are treated under a Basic Health Insurance plan after a 6 month waiting period. And another appealing aspect is that the application does not require you to answer medical questions, because this type of insurance is available to all applicants except those who are completely disabled.

Basic Health Insurance is usually available through your employer, or the organization you buy your health insurance through. It is important to note that this type of insurance is not intended to offer complete protection, but works as a simple and affordable way to address many common health insurance needs. Basic Health is also available in situations where other insurance plans are not. For example, you could purchase a Basic Health plan to fill in where your regular health insurance leaves off, or as an alternative to the costs of it.

Basic Health Insurance may not be available in all locations. Contact your state's Department of Insurance to find out whether yours has Basic Health or not. All but 14 states have Basic Health Insurance right now, but more states are taking part, so yours may be included soon.