Why Private Health Insurance Is Necessary
The healthcare industry provides a wide range of medical services to patients. Healthcare costs are expensive. In addition to paying their monthly health insurance premium, patients may be required to pay a deductible amount when receiving treatment and purchasing medications. Patients may also be required to pay out of pocket for exclusions their health plan doesn’t cover, such as physical therapy or counseling.
Some people may question whether they need to obtain private health insurance. Understanding private health insurance and the health plan options in different countries can help you evaluate your healthcare needs to ensure you have an appropriate insurance policy.
How can you find a private health insurance plan?
Locating private health insurance varies from country to country. Patients in the U.S. can refer to a government website for information about health plans. The federal government provides information about the Affordable Care Act and open enrollment periods. Patients who don’t have private health insurance or want to change their insurance company can sign up for a new plan during the free enrollment period.
Australians looking for private health insurance can refer to iSelect’s insurance portal. This portal prompts individuals seeking private insurance to enter general information, including who they’re seeking coverage for, their general location, their annual income, and their birth date. Users can customize the coverage options, including hospital coverage, insurance for extras, or hospital and extras coverage. The system lists each insurance company that offers a suitable insurance plan and provides information about their content, exclusions, and premiums. With this information, patients can secure private medical insurance to meet their needs.
What health insurance coverage does the federal government provide?
Some people may rely on insurance provided by the federal government, such as Medicaid or Medicare.
Patients in the U.S. can qualify for Medicaid if they earn a low income or receive Supplemental Security Income (SSI). People with recognized disabilities are eligible for SSI. These individuals may receive Medicaid as long as they’re below the age of 65. Medicaid can cover healthcare costs, including treatment at doctor’s offices, medical clinics, and hospitals.
In the U.S., Medicare is a government health plan for senior citizens 65 years of age or older. People with Medicare may still be responsible for paying some of their healthcare costs.
Individuals in countries including New Zealand, Canada, and Australia have universal healthcare. Universal healthcare is a low- or no-cost healthcare plan run by the federal government. Unlike the U.S. Medicare program, Australia’s Medicare program provides coverage for all citizens.
What are the benefits of paying for a private health plan?
The benefits of private insurance vary from country to country. The U.S. federal government requires all citizens to have healthcare insurance, but only a fraction of citizens qualify for Medicaid or Medicare. Individuals without private insurance are charged health insurance tax. Those who pay for an insurance plan aren’t charged with a health insurance tax. Obtaining health insurance also ensures you can afford access to standard healthcare services. It also prevents you from accruing medical debts that can lead to financial hardships or bankruptcy.
Private insurance covers treatments not covered by Australia’s Medicare program, such as physiotherapy and dental care. Purchasing a personal healthcare plan helps patients manage those costs.
What are the disadvantages of private health insurance?
Healthcare plans in the U.S. have restrictions. Insurance companies have networkers, and you must see healthcare providers who are in their approved network to have your insurance company pay for treatment. This can restrict treatment options for some patients.
Private health insurance is also expensive, and some individuals may struggle to afford insurance.
Although there are a few disadvantages with private health insurance, patients need private health insurance even in countries with universal healthcare. Australian patients with private health insurance receive comprehensive medical care and don’t have to worry about paying out of pocket to see a physical therapist or dentist. Patients in the U.S. who don’t qualify for Medicaid or Medicare must have private insurance to avoid tax penalties and avoid accruing medical debts for their healthcare treatments.