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health insurance is important but why and what is it we can explain health insurance covers the cost of your medical care including doctors visits and prescriptions think of it as a safety net in case you or a loved one gets hurt or sick it can also provide coverage for dental and vision care plus mental health and substance abuse disorder services your health insurance coverage can be offered through your employer whats known as group coverage or through a health plan that you choose yourself called an individual plan each month youre responsible for paying a certain amount to your health plan in exchange for coverage this is known as your premium if you get coverage at work this is taken out of your paycheck automatically and your employer may pay some of the cost you may have heard the word deductible thats a specific amount you pay for medical care before your health plan pays their share for example lets say your deductible is three hundred fifty dollars if you get a medical