What is Private Medical Insurance?
What is private medical insurance? It is insurance that is paid for by an individual not by an employer or by the government. You know of, Medicare and Medicaid. Both of those are not private. They are both funded by different government services. Though in the USA there is no guaranteed national health plan, as there is in many European countries, a huge portion of the American population relies on one or both of these services. In addition, each state has government funded medical insurance for various at-risk populations, in the interests of maintaining a healthful workplace overall.
The next largest portion of medical insurance comes from businesses or organizations who provide it as a benefit for their employees. Employers may pay all or part of the fees involved with the medical insurance company and the employee pays the co-pay portion.
What remains is the private medical insurance which individuals and families can purchase directly from an insurance company on their own behalf. Neither their employer nor the government are funding these insurance policies.
Every type of insurance has its drawbacks when you look closely. Some allow people more liberty in selecting services and programs. Government programs are often known for having fewer choices. That comes with less expense as well. People pay for the convenience or preference of having the liberty to choose what they want. That is a luxury in many cases. But that is often how private medical insurance functions.
You know there are certain things you will probably need medical attention for each year, but you cannot predict the accidents or injury or sudden illness that you may encounter during that time. In the same manner, you select an insurance company that has a plan which comes as close to your anticipated needs as possible. It may be a full coverage medical insurance plan, it may only be forhospitalization, it may only be for specific medical treatments. You could find an insurance plan that is only for you. Or you can look for one that will include your entire family in the coverage. Some people will add a supplemental insurance plan to whatever their employer already offers them. That way, more of the medical expenses will be paid for by an insurance company and you will not need to face huge expenses during an emergency or illness.
Private medical insurance may be found in different types of policies. You will find discount plans, membership plans, HMOs, PPOs. The list continues. An HMO is a Health Maintenance Organization which offers lower rates but requires you to stay within their network of health care providers. PPO is a Preferred Provider Organization, which allows a little more flexibility when it comes to who provides the service, but still has requirements about how your coverage operates. All of the managed care plans have different and clearly defined benefits. Each one will have different costs based upon which plan you select. That is why many people prefer private medical insurance, even though they may pay more for the monthly premiums, they can see the doctor of their choice.
Keep in mind, this is regarding medical care. Full coverage dental insurance handled by an entirely different policy.The key is when you and the insurance company are working directly with each other it is private medical insurance. You pay the company and they pay the healthcare provider. Otherwise it is funded or paid for by someone else, your employer or the government.
The next largest portion of medical insurance comes from businesses or organizations who provide it as a benefit for their employees. Employers may pay all or part of the fees involved with the medical insurance company and the employee pays the co-pay portion.
What remains is the private medical insurance which individuals and families can purchase directly from an insurance company on their own behalf. Neither their employer nor the government are funding these insurance policies.
Every type of insurance has its drawbacks when you look closely. Some allow people more liberty in selecting services and programs. Government programs are often known for having fewer choices. That comes with less expense as well. People pay for the convenience or preference of having the liberty to choose what they want. That is a luxury in many cases. But that is often how private medical insurance functions.
You know there are certain things you will probably need medical attention for each year, but you cannot predict the accidents or injury or sudden illness that you may encounter during that time. In the same manner, you select an insurance company that has a plan which comes as close to your anticipated needs as possible. It may be a full coverage medical insurance plan, it may only be forhospitalization, it may only be for specific medical treatments. You could find an insurance plan that is only for you. Or you can look for one that will include your entire family in the coverage. Some people will add a supplemental insurance plan to whatever their employer already offers them. That way, more of the medical expenses will be paid for by an insurance company and you will not need to face huge expenses during an emergency or illness.
Private medical insurance may be found in different types of policies. You will find discount plans, membership plans, HMOs, PPOs. The list continues. An HMO is a Health Maintenance Organization which offers lower rates but requires you to stay within their network of health care providers. PPO is a Preferred Provider Organization, which allows a little more flexibility when it comes to who provides the service, but still has requirements about how your coverage operates. All of the managed care plans have different and clearly defined benefits. Each one will have different costs based upon which plan you select. That is why many people prefer private medical insurance, even though they may pay more for the monthly premiums, they can see the doctor of their choice.
Keep in mind, this is regarding medical care. Full coverage dental insurance handled by an entirely different policy.The key is when you and the insurance company are working directly with each other it is private medical insurance. You pay the company and they pay the healthcare provider. Otherwise it is funded or paid for by someone else, your employer or the government.