Health Insurance is a device that insures an individual against financial risks of care in case of illness, as well as a minimal income when the condition deprives the person of work. In the U.S and some other Western countries, much of the health insurance is provided by the state. It is, moreover, one of the fundamental components of social security, and a duty of the State according to the 1948 Universal Declaration of Human Rights.
A public health insurance system can be managed by a state agency, delegated to private organizations, or perhaps be mixed. The very operation, akin to every insurance, is based on the pooling of risk: each person contributes, in exchange for which it is reimbursed according to a fixed scale.
Concerning a public health insurance system, the insurance premium paid by the insured does not necessarily follow the rules of pure insurance, that is to say, that it is not based solely on the risk. Indeed, the public system fulfills both a pure insurance function and a distribution function in which the better-off pay the insurance of the most.
History Of Health Insurance
Until the eighteenth century, protections against the risks of life are provided by personal wealth, local solidarity (family, village) or professional (guilds), and charity. In the nineteenth century, the industrial revolution concentrated populations in cities where local solidarity can no longer play while the number of accidents at work increases.
Besides, an intellectual and scientific movement is developing which promotes individual foresight (at the origin of private insurance). The mutual insurance companies that provide collective insurance, and the notion of sacred debt brought by the country revolution of which declaration of the rights of Man, and the Citizen recognizes for every national the right to social assistance and social protection, giving rise to social security.
These new concepts are applied now, wishing a strong state, developed the first system of compulsory social insurance with the draft laws on insurance against industrial accidents and social health insurance adopted in 1883 and 1884
Types Of Health Insurance
Healthcare Insurance Without Co-Payment
Health insurance Sanitary Assistance; the medical insurance that includes the complete coverage to take care of the family! This medical insurance is a product without co-payments for the use of medical services.
Healthcare Insurance With Co-Payment
It is the insurance that includes the complete coverage to take care of the family and with a special co-payment adjusted to the use of medical services made by the insured, which guarantees a lower premium than what would correspond in another type of insurance.
Healthcare Insurance With The Reduced Copayment
It is the insurance that offers the complete coverage for the whole family, paying a reduced copayment. It allows contracting guarantees independently or jointly, according to the needs of each family unit.
Health Care Insurance Choice
The insurance that includes all the guarantees of the Primary Care and coverage through the Medical Board by presenting the health card and with the best dental coverage! It also facilitates access to the most qualified doctors of all specialties at special prices.
Medical Expenses Reimbursement Insurance
The insurance that allows you to freely choose a doctor or hospital anywhere in the world or, if you prefer, go to the services of any Medical Board without having to make any financial outlay.
It is the insurance that compensates the income that would be left to obtain for total temporary disability during the time in which the insured could not exercise their usual work due to illness or accident. There is a daily compensation previously contracted.
The option of Compensation according to Scale can also be contracted (compensation up to the number of days fixed in a scale when the insured suffers a loss for any of the illnesses or injuries included in it).
The Essential Compensation insurance guarantees the payment of compensation in case of illness or accident. It covers any profession, including unpaid ones. The policy is also indicated for housewives, as an economic complement in case of not being able to face daily tasks due to illness or accident.
Growth In Health And Insurance Costs In The United States
Nearly all workers with health insurance provided by the company face additional costs when using the healthcare insurance services out there! Eighty-five percent of the covered workers in our nation truly have a general yearly deductible which must be truly met before insurance services are reimbursed by their very own health insurance plan.
Even workers without annual deductibles often face other types of cost-sharing when they use services, such as co-payments or co-insurance for office visits and hospitalizations, which can reach thousands of dollars from their clients.
Recently, the very average yearly premiums for the employer-sponsored medical health insurance were specifically $ 6,251 for the single coverage as well as $ 17,545 for the family health insurance coverage. Each rose by 4 percent over the last years average premiums. Over the very same time or maybe period, workers’ wages increased by 1.9 percent as well as inflation fell by 0.2 percent. Premiums in the year 2017 also increased by 8 percent on average.
This very trend shows no signs of reversal. Health care is truly expensive, and then patients are going to cover lots more of the costs themselves.
The Emergence Of Deductible Health Plans
Much has actually been proclaimed recently about rising franchises under the great Affordable Care Act, which is also known as the (Obamacare). The (HDHP) plans are merely the health insurance arrangement or plan with a bit lower premiums as well as higher deductibles compared to the conventional health plan.
HDPH was conventionally considered as well as used as a form of calamitous or maybe tragic coverage that was projected to cover the very high level of costs connected with tragic diseases.
By choosing a PSDH rather than the traditional or conventional health insurance coverage, there exists a negotiation for the health insurance buyer: the lower cost health insurance premium from one month to the next, but a higher deductible and an increased financial burden.
In exchange for a comparatively low yearly or maybe monthly premium compared to the traditional health care plan, insurance benefits are only paid when the consumer has reached his annual deductible, much higher than the traditional health plan, sometimes greater than $ 10,000.
Patients are now becoming more sensitive to health care costs because a lot of the costs come from their pockets. Notwithstanding, the industry has not admittedly changed to present patients with financial transparency so that a patient can appraise treatments as well as assess relative costs and benefits.