Wednesday, March 14, 2018

Private Health Insurance- Why you really need it ?

Private Health Insurance is playing a prominent role in the present scenario. It such a type of insurance coverage that covers insured's medical and operating expenses.Although it depends on the type of policy you have taken, either insured first pays the expense out of his pocket and after then reimburse it, or payment is directly made to the provider by the insurer. The term provider can be understood as any doctor/hospital/clinic/health care center, and insured is that person who has taken the policy of private health insurance.In countries like the US where private health insurance is an integral part of life, is also included in employees benefit package.


Private health insurance is needed as medical costs are rising year on year.It is increasing comparatively faster than inflation in food and other things.For individuals who have not saved much money for future health care, then it will be a difficult task for them to arrange funds at the eleventh hour.With the help of private health insurance, you have more secure future with both money wise and health wise.



IS PRIVATE HEALTH INSURANCE A BASIC HUMAN RIGHT?

In countries like UK and Canada, private health insurance is taken as citizen's right and is provided by the state.It is considered as important as other services (police, public education, streetlight, public road transport) or we can say it is a part of public service.

Private health insurance is somewhat different in countries like America.In the US, it is the responsibility of every citizen to get insured with an exception of section such as elders/handicapped/veterans and others.According to the US prevalent laws, even fine can be imposed on those who have failed to take any kind of private health insurance.In any stage of life, we can face the need of medical care and attention and in that case, we must focus to get better instead of worrying about the managing of bills paid.This viewpoint is becoming common in all developed countries and that's why the importance of insurance has risen.

Researchers have found that diabetes patients require continuous private health insurance coverage for bearing the long term expenses of their disease.It was found in Commonwealth report that 26% of US citizens lost their private health insurance coverage when they either changed their jobs or became
unemployed.

Centres for Disease Control and Prevention states that US health care system is heavily based on Private Health Insurance.Almost 58% of Americans are covered under any type of private health insurance policy.

MAJOR PRIVATE HEALTH INSURANCE PLANS IN USA

1.Indemnity Plans: Under indemnity private health insurance plan, an insured has the option to choose any doctor he/she wants.And the doctor/hospital will submit a claim to the insurance company.Like any other plan, insured will only be compensated for the mentioned benefits.Indemnity plans don't pay for all medical services, it covers at least 80% of expense and the rest is too covered by insured himself.

2.Health Maintenance Organisations(HMO): HMO provides care directly to the insured.Payment is not made for each service by insured, a set amount is paid to HMO and receives a range of benefits in return.HMO always insist on providing care to insured from health care professionals, medical organization, laboratories which are covered under its network of providers.It is generally mentioned as cheapest private health insurance plan.

3.Managed Care Plans: These are those private health insurance plans which have a contract with medical care providers to provide care at low cost.The majority of indemnity plans use managed care plans to control costs.

4.Preferred Provider Organisation(PPOs): It is quite similar to indemnity plan where the insured can choose any doctor which he/she likes.PPO come together with medical care centres, laboratories, medical professionals, and make a network with agreed ones.

5.Point Of Service Plans(POS Plans): POS private health insurance plan is somehow the combination of PPO and HMO.The insured can choose either to have general practitioner for care or to go for point-of -service.

USA's TOP 25 PRIVATE HEALTH INSURANCE PROVIDERS:
  • Kaiser Foundation Group
  • Aetna Group
  • UnitedHealth Group
  • Wellpoint Inc. Group
  • HCSC Group
  • Coventry Corp.Group
  • Cigna Health Group
  • Humana Group
  • Highmark Group
  • Carefirst Inc. Group
  • California Physicians'Service
  • HIP Insurance Group
  • Health Net Of California, Inc.
  • Centene Inc.Group
  • Blue Cross Blue Shield Of Florida Group
  • Independence Blue Cross Group
  • Blue Cross Blue Shield Of Michigan Group
  • Blue Cross Blue Shield New Jersey Group
  • Wellcare Group
  • Metropolitan Group
  • Cambia Health Solutions Inc.
  • Lifetime Health Care Group
  • UHC Of California
  • Blue Cross Blue Shield Of Massachusetts Group
  • Molina Healthcare Inc.Group

PRIVATE HEALTH INSURANCE in the US is the main source of health coverage for the people.For elders, children,low-income families, public programs are the main source of health insurance.But if you are not covered under any public programs and your coverage is partial, then you may need private health insurance.

HEALTH SAVING ACCOUNTS (HSA)
HSA are tax-free accounts that ensure coverage for future medical care expenses.People having high deductible plans, and having no other insurance plan are eligible for this account.It is helpful for those seeking for some protection.Small businesses consider HSA as a suitable alternative than traditional health plans in the market.People can enter in this plan through their employer if it is available in the company or also individually(in some states).It should be paired with an existing plan with an annual deductible of $2200 for families and $1100 for individuals.
In short, private health insurance plays a significant role and is considered as necessary part of life in countries like the US.

SOURCE : http://www.policymantraa.com


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