Thursday, April 9, 2009

Health Care Insurance

Health insurance is a form of insurance that pays for medical expenses. It is sometimes include insurance covering disability or long-term nursing or custodial care needs. It may be divisible into a government-sponsored national insurance program, and private insurance companies.

Medical insurance was first offered in the United States by the Franklin Health Assurance Company of Massachusetts. It was an accidental insurance. The first insurance group was established in 1911. During the 20th century, the health care insurance developed into modern health insurance programs. Today, most private health insurance programs recompense the medical attendance and also most prescription drugs.

A health care insurance policy is a contract awarded between an insurance company and an individual or his sponsor (an employer, as usual). The contract can be renewable annually or monthly. The contract makes provision for amount of health care costs that will be due by the health care insurance company. The individual insurance may take several forms:

Premium: The sponsor or the employer pays to the health plan each month.
Deductible: Anticipates the provisional payment per annum from the sponsor or the employer.

Copayment: Must be recompensed each time a particular service is obtained.

Coinsurance: Anticipates fixed amount that insured person should pay.

Exclusions: The insured person is generally suggested to pay a part or the full cost of medical care.

Coverage limits: The insured person is generally suggested to pay any expenses overrun the health plan's maximum settlement.

Out-of-pocket maximums: Is akin to Coverage limits, with the difference that if the insured person's payment obligation ends when they attain their maximum, and the health company pays all other costs. Can be refered to a specific benefit category (such as prescription drugs).

Prior Authorization: The insurer is pledged to pay for the service that was authorized.

Prescription drug plans is also a part of insurance offered as some benefit plans in some countries.

It's well known that employees attach importance to individual health care insurance benefits. Analyses have shown that workers appreciate health insurance just a shade less than salaries and emoluments. So if an employer can offer a satisfactory health insurance plan to his employees, he gets the best labor power.