Health Insurance: Common Myths and Misconceptions Author:    Posted under: Health InsuranceHealth Insurance questions answered


The subject of health insurance can be both simple and complex at the same time.  It is simple in the sense that when you pay a premium then you get health insurance coverage. It is complex due to the fact that there is more to it than paying the premium. There are so many underlying factors behind it that sometimes people will not bother to really look into it and most of time, get short-changed. And with the way health insurance laws and regulations keep changing or are being altered makes it more complicated and people are having a hard time catching up. This has led to several myths and misconceptions about health insurance.

Those who are interested in helping to solve the problems with the healthcare system might consider one of the online MPH degrees available through accredited universities.

It is best to understand that health, health care and health insurance are not the same, although all three are connected. As we know, insurance is where we pay a premium up front and if we become sick or involved in an accident we get paid from the premiums that have been collected. This is why it is advisable to purchase health insurance when we are healthy. This way, we protect ourselves from having to allot additional resources or money when we fall ill.

The main reason why we purchase health insurance is to be sure that when we fall sick and need more health care.

One of these common misconceptions is the idea that people who are sick need to pay a large sum of money just to get an insurance policy. While it is true that sick people often pay more money to cover their illness, insurance companies base their premiums on risk and not on events. Simply put, insurance is based on events that are yet to happen.  Sick people are also interested more on health care itself rather than health insurance, and insurance companies do not offer health care, they sell health insurance. Because of this, health insurance companies sometimes refuse to cover sick people.

Sick, uninsured individuals, on the other hand, are in need of health care and not health insurance. Since they are already sick, some insurance companies will refuse to enroll them or if they do, they will not cover the pre-existing conditions.

Another misconception is that people with health insurance get better health care. It is true that having health insurance may increase quantity of care, it does not follow that it also gives the best quality of care. The quality of health care you receive will depend on the coverage that you have with your insurer. Sad to say but if you pay only a minimum amount on your policy, then you get just the same amount of health care as well.

If an individual is employed, employers normally pay for their insurance premium, right? Wrong. It has been a customary belief that it’s the employer’s own money that pays for the employee’s insurance. But this is just another misconception. When an individual is hired, employers offer him salary and benefits. Part of these benefits is health insurance. Since health insurance is a benefit, it is still considered as a part of the whole compensation package, you just don’t get the money directly. In case the health insurance premium paid is not enough to cover health care in its entirety, the employee has to pay additional out of his or her own pocket.

We also have to understand that the government does not offer insurance per se. What they offer is what we call social insurance. The government gives funds to high-risk (in terms of health care) individuals so they can afford health insurance. It is a common knowledge that high-risk individuals pay more on their insurance premiums.

These are just some of the common myths and misconception about health insurance. In order for us to avoid being in one of these scenarios, thorough research should be done. And also it is not always good to just listen to what other people think may be true.

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