Sunday, 23 January 2022

Why do i need health insurance

In simple terms, Health insurance is a must for all citizens.

When we are talking about Health Insurance, the obvious question does arise who needs health insurance?  It is for everyone, no matter your gender or age, one needs health insurance. 

Perceptibly, health is an important aspect, and no one plans to get sick or hurt but at a certain point in time people need medical care. 


Why Health Insurance?

Healthinsurance protects you from unexpected high medical costs. Health insurance is a device that ensures an individual against financial risks of care in case of illness, as well as a minimum income when the condition deprives the person of work.

In general, health insurance is a type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured.

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. No doubt, high-quality health care helps prevent diseases and improve quality of life.

Concerning a public health insurance system, the insurance premium paid by the insured does not necessarily follow the rules of pure insurance, i.e., it is not based solely on the risk. Indeed, the public system fulfils 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 or professional 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 increased.

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.

Without Health Insurance

At the federal level [January 2019] health insurance coverage is no longer mandatory and going without health insurance saves you money since you are not paying premiums, but it could put you at financial risk if you get injured or develop a serious illness.

The five major 5 A’s of healthcare are:

  • Ask
  • Advise
  • Assess
  • Assist and
  • Arrange


Broadly health insurance defines in two types chiefly private and public, or government.

Health insurance typically covers most doctor and hospital visits, prescription drugs, wellness care, and medical devices. 

Most health insurance will not cover elective or cosmetic procedures, beauty treatments, off-label drug use, or brand-new technologies. 

List of Diseases Not Covered Under Health Insurance

  • Congenital Diseases/Genetic Disordered
  • Cosmetic Surgery
  • Health issues due to consumption of drugs, alcohol, and smoking
  • IVF and Infertility Treatments
  • Pregnancy Treatment
  • Voluntary Abortion
  • Pre-existing Illnesses
  • Self-Inflicted injury

5 Types of Insurance You Don't Need

  • Mortgage Life Insurance. There are some insurance agents that will try to convince you that you need mortgage life insurance
  • Identity Theft Insurance
  • Cancer Insurance
  • Payment protection on your credit card
  • Collision coverage on older cars


Difference between Health and Medical Insurance

Medical insurance will provide you coverage only for hospitalization, pre-specified ailments and accidents that too for a pre-specified amount while health insurance will provide you with comprehensive coverage against hospitalization expenses, pre-hospitalization and post-hospitalization expenses and ambulance.

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 to another type of insurance.

Healthcare Insurance with The Reduced Copayment

It is the insurance that offers 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 includes all the guarantees of Primary Care and coverage through the Medical Board by presenting the health care 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 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.

Compensation

It is the insurance that compensates the income that would be left to obtain for a 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].

Essential Compensation

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

Nearly all workers with health insurance provided by the company face additional costs when using the healthcare insurance services out there! Eighty-five per cent 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.

The Emergence of Deductible Health Plans

Much has been proclaimed recently about rising franchises under the great Affordable Care Act. The plans are merely the health insurance arrangement or plan with a bit lower premium as well as higher deductibles compared to the conventional health plan.

According to statistics, every year people die because of a lack of health insurance.  It is to be noted that what happens with the rest of the community who does not work, maybe because of disabilities, because they are mothers and have to take care of their children, or because they are elderly people?

Thus, Insurance is a must for all citizens and those who do not have a social security scheme, should voluntarily join, just paying a very cheap annual fee that entitles coverage for medical services during a certain period.  One cannot ignore health services.  Generally, it serves patients, families, communities, and populations. 

Conclusion

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.

As we all know Omicron is a new wake-up call.  The world is approaching post-covid challenges and uncertainties still are looming large striving to strike a balance between lives and livelihoods. 

Now they have a sense of consciousness that having health insurance is important because coverage helps get timely medical care and improves their lives and health. 

Tips to Choose a Health Insurance Plan

  1. Look for the right coverage
  2. Keep it affordable
  3. Prefer family over individual health plans
  4. Choose a plan with lifetime renewability
  5. Compare quotes online
  6. Network hospital coverage
  7. High claim settlement ratio

There are several examples of countries that have implemented universal health care by providing health insurance for everybody, such as Malaysia, Brazil, Rwanda, Thailand, South Korea and China.

If we all contribute to this cause by paying our taxes and paying special attention to the people in need, this will be no longer just a dream, we can make this a reality for everybody now, we can change our lives.   Nobody has life guaranteed and accidents happen. Life insurance means protection and safety for everybody in need, despite their social class.

Thus, it is important the major players of the insurance say private, public and government and also the policymakers should come to the forefront and bring out the wide range of potential merits rather than drawbacks and facilitate the common people to take the likely benefits from it.  We should give value to Human Life.

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