Health insurance works just like any other insurance. It is all about risks and probabilities. The insurer or the health insurance company assumes your risks of losing money because of accidents, illnesses, etc. As payment for such services, you are required to pay premiums every month. This monthly premium compensates for the insurer's epenses in protecting you against medical bills. Health insurance coverage may be private or government-funded. Private health insurance includes job-based coverage, individual health policies, association health plans, and consumer-driven health plans. Government-funded health insurance includes Medicare, Medicaid, and high-risk pools. Usually, Individuals policies require you to undergo underwriting. In underwriting, the insurers evaluate how likely you will eperience a costly injury or illness before deciding to offer you health insurance coverage. The insurers also determine your eligibility and monthly premiums during the underwriting process. Moreover, health insurance companies require deductibles, copay, and coinsurance in your health plans before covering all your medical epenses. Deductibles are the amount of money you pay before the insurance covers your medical epenses. The amount of deductibles depends on your health plan. The copay is the fied amount that you pay for a specific healthcare service. Coinsurance is the percentage of healthcare costs that you are required to pay. You usually use copay and coinsurance for drug prescriptions or doctor's visits. Again, the amount of copay and coinsurance depend on the terms of your health plan. Answer by admin — May 23, 2009 @ 11:15 am