For those living in the United States, understanding the healthcare system can be daunting. Unlike many other developed nations, the US lacks a unified national health insurance program. This means medical costs are exceptionally high, and without proper coverage, a single hospital visit could cost anywhere from hundreds to tens of thousands of dollars - creating significant financial pressure for many families.

Therefore, comprehending the American health insurance system becomes crucial. In the US, health coverage primarily comes from three sources: employer-sponsored plans, government assistance programs, and individual insurance policies. Here's a detailed breakdown:

Employer-Sponsored Health Insurance

Many Americans receive health coverage through their workplace. Unlike systems like Taiwan's National Health Insurance, US employers typically partner with private insurance companies rather than participating in a government-run program. As a result, benefits and coverage terms vary significantly between companies.

Employers often provide favorable coverage options and may extend benefits to spouses and children. Students frequently obtain insurance through their educational institutions.

However, a major drawback of employer-sponsored insurance is its immediate termination when employment ends. To address this, the government established COBRA (the Consolidated Omnibus Budget Reconciliation Act), which allows temporary continuation of health coverage after job loss or other qualifying events. Applicants must enroll within 60 days of losing coverage, though premiums are typically higher and continuation lasts only 1-3 years.

Government Assistance Programs

The US government provides healthcare support for specific populations, including low-income families, seniors, and people with disabilities. Key programs include:

• Medicaid: Insurance for low-income individuals, administered by states with varying names (e.g., Medi-Cal in California).
• Medicare: Federal coverage for citizens aged 65+ or certain disabled individuals. Late enrollment may incur penalties.

Additional programs serve military families (TRICARE) and children (CHIP), ensuring basic coverage for families who can't afford private insurance.

Individual Insurance Plans

Those without employer or government coverage may purchase private insurance directly. Following widespread medical debt from uninsured Americans, the 2010 Affordable Care Act (often called "Obamacare") originally mandated that residents maintain qualifying health coverage or face tax penalties. While the federal penalty was eliminated in 2019, some states still enforce this requirement.

Understanding these healthcare options provides essential knowledge for anyone living in or moving to the United States. Whether through an employer, government program, or private purchase, making informed decisions about health coverage represents the first step toward financial security and peace of mind.