Health insurance is a major aspect, in the American economy. As it is, the federal government spends more than $ 7,000 per capita, for the purpose of providing medical coverage. This is a huge amount, considering the fact, that, governments of some countries do not even spend $10 for this purpose.

According to a rough estimate, around 85% of the people in America have medical insurance coverage. Of this, around 61% have insurance coverage arranged by the employer, while 29% of the people avail health insurance programs extended by the Federal government. Around 10% of the people of America buy health insurance themselves.

Apart from the federal health insurance schemes, the average American has a wide variety of choices, when it comes to health insurance. You can choose from a number of commercial health insurance options. The following are some of the commercial health insurance plans which are available to an American citizen:

1. The first in this category is the Indemnity Policy. Such a policy, would usually offer you the freedom of choosing the physician or medical care facility, which you want to have. Such plans are regulated by the CDI.
2. The second kind of health insurance in California, under this category, is the Preferred Provider Organization (PPO). Under this plan, although you are allowed to visit a doctor or health care facility, which is not covered under the PPO network; but your out-of-pocket expenses, would be more, than what it would have been in case of PPO network. These health insurance plans are regulated by either the CDI or the Department of Managed Health Care (DMHC).
3. The third in this category is that of Health Maintenance Organization (HMO). In this, you are required to choose a doctor or medical care
4. facility, which is covered in the HMO. Such health insurance plans are regulated by the DMHC.
5. The next health insurance plan under this category is the Self-Insured Health plan. This plan is usually offered by large organizations, where there is a large sum of money set aside for the payment of medical expenses of the policy holder/employee. These plans are mainly regulated by the Employee Retirement Income Security Act (ERISA).
6. The fifth option in this category is the Multiple Employer Welfare Arrangement plan. Under this, employers who are members of associations like that of industry or trade, create accounts which make payments for the medical expenses. Such plans are regulated by the California Department of Insurance (CDI).

More and more Americans are awakening to the need of health insurance in America. If you are an American citizen, then you will have a number of options, as far as health insurance is concerned. As it is, health insurance is a very important aspect and should never be avoided.

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