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A health insurance is a part of the process for the financing of medical expenses through contributions or taxes paid into a common fund to pay for all or part of health services specified in a health insurance policy or law. The key elements of a health insurance are advance payment of premiums or taxes, pooling of funds, and eligibility for benefits on the basis of contributions or employment without an income or assets test.

A health insurance may apply to a limited or comprehensive range of medical services and may provide for full or partial payment of the costs of specific services. Benefits of a health insurance may consist of the right to certain medical services or reimbursement of the insured for specified medical costs.

Private health insurance is organized and administered by a health insurance company or other private agency. Public health insurance is run by the government. Both forms of health insurance are to be distinguished from socialized medicine and government medical-care programs, in which doctors are employed directly or indirectly by the government, which also owns the health-care facilities.

Co-payment: The amount that the policy holder must pay out of pocket before the health insurance plan pays it’s for a particular visit or service.

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