It is true to say that almost health insurance has become very popular all over the world. There is no denying the benefits it brings. But do you really understand it? This article will be very helpful for you.
What is health insurance
The fact of the matter is that according to the American Health Insurance Association, health insurance is insurance that provides benefits payments due to illness or injury. It includes insurance for accidental losses, medical expenses, injury or accidental death.
Health insurance is a form of insurance that the insurance buyer will be paid for in part or in full by the insurer as well as the cost when they buy medicine or a medical examination.
Health insurance enables patients to be examined and treated even though they do not have enough money to pay for actual medical examination and treatment costs for health agencies. In order to achieve this, the health authorities themselves must also participate in this insurance. Often state health agencies are required to participate. Private health agencies are encouraged to participate and whether or not they participate is up to them.
Depending on each country, the scope of coverage and the level of insurance (in part or in whole) in each country are different. For details on health insurance packages, you can refer to this link https://ibaohiem.vn/san-pham/bao-viet-an-gia/ to learn more fee schedule and benefits for participants.
Each country has a different classification for Health Insurance. For example, in Japan, Health Insurance includes short-term insurance policies such as Illness, Maternity, Labor Accident – Occupational Disease and Medical Examination.
The social insurance regime covers only two types: Health Insurance and Pension Insurance. In Vietnam, Social Insurance includes regimes: sickness, maternity, labor accident, occupational disease, retirement.
In addition, the insured individual also has several obligations. Here are some concepts you need to know
Premium: The amount the policy owner or their sponsor pays to the health plan for health insurance.
Deduction: The amount of money the insured must pay before the health insurance company pays the remaining amount
Co-payment: The amount of money the insured must pay off before the health insurance company pays them.
Co-insurance: Instead of paying a fixed amount (copayment), coinsurance is a percentage of the total cost that the insured can also pay.
Exclusion: You need to know that not all services are covered. The insured usually pays the full cost for uninsured services
Coverage limits: Some health insurance policies cover only certain levels of health care. The insured may have to pay any fees that exceed the maximum payment of the insurance plan. In addition, some insurance company plans have annual or lifetime insurance coverage. In these cases, the health plan will stop paying when they reach the maximum benefit and they will have to pay all the remaining costs.
Out-of-pocket maximum: same as the insurance limit, except in this case, the insured’s payment obligation ends when they reach the out-of-pocket maximum and the health insurance pays all expenses. Extra insurance fee. Maximum out-of-pocket limits may be limited to a specific type of service (such as prescription drugs) or may apply to all coverage provided for a specific benefit year.
Caption: An amount paid by an insurance company to a health care provider, which the provider agrees to apply to insurance company’s customers.
Prior authorization: This is a certificate or authorization provided by the insurance company before medical services arise. Having an authorization means that the insurance company is obligated to pay for the service.
Network providers: Healthcare providers in a list of pre-selected providers. The insurer will offer co-insurance or copayment discounts, or additional benefits, to plan members’ meetings with network providers.
Why do we need health insurance?
With increasing medical prices in many countries around the world, with increasing cases of illness, health insurance today is a necessity. Health insurance provides people with a much needed solution during medical emergencies. It is true to say that health risks and uncertainty are a part of life. One of the ways to prepare financially for uncertain health risks is to buy health insurance.
Health insurance may reimburse the insured for expenses incurred due to illness or injury, or directly to the care provider. There are many different types of health insurance programs, such as personal health insurance, family health insurance, critical illness insurance, etc. Buying health insurance is a very important part of your financial plan.
Health insurance provides people with a much needed solution during medical emergencies. According to various reports, India continues to have the lowest penetration rate of health insurance in the world. However, the government’s focus on health programs, new initiatives such as, Ayushman Bharat Yojana and capital spending on healthcare can make the situation better.
You can buy family health insurance to care for your and your family’s medical needs. However, the health insurance premium you have to pay to take advantage of a different good insurance policy for different people and based on a number of different factors.
Changing lifestyle: Changes in lifestyle have made us more prone to wearing health problems. Working, busy work schedules, wrong eating habits, increased food quality and pollution levels increase our risk of disease. It is one of many reasons to have health insurance policy
Increased medical costs: Medical costs have increased significantly in recent times. Therefore, in a medical emergency, you will have to spend a large amount of money, which is damaging to their future plans. Reports emphasize that Indians are largely dependent on their own savings when dealing with health emergencies.
Other additional benefits: People also get many benefits when buying health insurance. Some examples of this include ambulance insurance, day care surgeries insurance, health screening insurance and vaccination costs under health insurance.
All in all, health insurance is very important for you. Buy as soon as possible.