How Does A Health Insurance Policy Work? 
The concept of how a health insurance policy works is fairly simple . First , of course , you buy the policy directly through an experienced broker or a reputable recognized website . Federal tax credits may help reduce your costs with Exchange plans . -LRB- Starting in 2014 , each state will set up an `` Exchange '' which will be one way to purchase coverage -RRB- You select benefits and the price . Once you are treated for a sickness , accident or ailment that is covered by your policy , the insurer pays the provider the stated or agreed amount of benefit . There are many different types of coverage , including comprehensive , catastrophic , HSA , short-term and student plans . An experienced broker or reputable website can provide detailed information including rates from multiple carriers . 