Health Insurance

Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, medicines, and other medical care. The high cost of medical care makes it important for people to have adequate health insurance. People without such coverage could suffer a major financial hardship in case of a serious illness or accident.

A large majority of people in the United States have some form of private or public health insurance, though many have limited coverage. Many millions of Americans are uninsured.

In numerous countries, the government provides health care for the nation's people. These countries include Australia, Canada, Ireland, New Zealand, and the United Kingdom. In Canada, nearly all people are covered by provincial government health insurance. In the United Kingdom, the National Health Service provides government-funded medical services to all residents. In Canada, the United Kingdom, and other countries with government health care programs, private insurance companies offer additional coverage to people who wish to purchase it. For information on public health insurance, see the section Social insurance in this article.

Private health insurers sell individual and group policies. However, most people with private health insurance are covered under a group plan where they work. Group plans typically cover not only the insured person but also that person's dependents. Group health insurance generally costs less than individual coverage because administrative costs and other expenses are lower. Some employers pay all or part of the premiums of their employees. In addition, many employers have plans that allow employees to pay for premiums using pretax funds-that is, funds that are not counted as taxable income.