Healthcare Insurance or Health Insurance is a type of insurance in which the insurer pays a premium to the insured for each month an individual spends for health care. Health insurance is usually an insurance that pays a part or the entire risk of the individual incurring healthcare costs, spreading the burden over a number of persons. This type of insurance also allows the insured to use healthcare services of their choice and at their own cost, unlike private medical insurance where they pay a pre-determined monthly charge. Health Insurance also has a fixed premium and cannot be raised or decreased during the life of the policy. You can get more information about Doctors disability insurance.
A major advantage of Healthcare Insurance is its widespread coverage. It covers almost all healthcare services and hospital costs incurred in any part of the world. With such wide coverage it ensures cheaper medical bills for the insured. As there is a constant increase in the population the need of healthcare insurance also increases. This leads to an immediate competition among insurance companies to sell the most comprehensive health insurance policies to the maximum number of customers. There is a constant struggle for the business of insurance companies to provide the best healthcare insurance with maximum benefits.
The first advantage of health insurance is the financial protection it offers against any financial loss due to unexpected medical expenses. The insured person pays a fixed rate and does not have to worry about the increasing medical costs. They can take the insurance according to their convenience. As the government plays a very important role in the development of any health system, it provides tax concession to promote health insurance. It is the single largest holder of tax concessions. In addition to this most of the states of United States of America allow tax deduction on the purchase of health insurance by the eligible citizens of the state.
Most of us are of the view that health insurance is expensive and do not contribute to the budget of an individual. However, the statistics available today prove otherwise. According to the estimates of the National Institute of Health, direct written premiums of health plans are now approximately $12 billion. This means that even a single individual can afford the plan.
According to a recent study by the Kaiser Commission on Medicaid and the Affordable Care Act (ACA) the United States spends approximately $52 billion a year on health care. If we further assume that one out of every eight individuals in the country either do not have health insurance or do not have sufficient cover then this implies a significant increase in the country’s medical expenditure. It is only with the introduction of Medicare supplement called Medicare Part A and B that the United States government has regained the fiscal control over the spiralling medical bills. With Medicare Part A and B, the government reimburses the insured for the medical expenses up to a maximum limit, known as the Medicare Part A cap. On the other hand with Medicare Part A and B, the insurer reimburses the insured only up to a certain predetermined percentage of the total medical expenses.
The present situation with healthcare financing has made the government take serious consideration to introduce a national health insurance scheme like that of Medicare. As many experts opine, a universal health care system is now a reality. However, there are different opinions as to how the introduction of a national health care scheme will affect the insurance market. Some of these opinions argue that it may reduce the freedom of choice for consumers regarding the type of healthcare provider and some also argue that it may increase the cost of healthcare by increasing the demand for medical checkups, surgeries, medicines and treatment. Even though all these arguments are valid, experts believe that the introduction of a national health care system is still far off and a holistic approach to healthcare is more likely to bring about success.