In case you didn’t know, health insurance is a type of guarantee that is provided based on agreed terms in case the insured person gets sick or needs medical treatment. The insured may suffer from a chronic condition that requires medical care for years to come. Let’s know more about it.
Who will pay the medical expenses?
This is one of the most common questions people ask. If you have health insurance, you can rest assured that your health will be taken care of. In fact, it is a kind of agreement or contract between you (the policyholder) and the company that provides health insurance. The purpose of the agreement or contract is to provide protection against costs. Sometimes, the costs are so high that the patient is unable to pay the bills. As a result, the person is not able to get the care they need to recover.
While you will pay a monthly or yearly premium, you should expect that the amount of the premium you will pay will be much less than the amount you would pay in the event of illness.
Keep in mind that health insurance is a type of benefit provided by a nonprofit organization, private company, or government agency. In order to figure out the cost, the company obtains an estimate of the collective medical cost for all people in the state. The risk is then divided among the policy participants.
In terms of the concept, the insurance company knows that one person may suffer unexpected huge healthcare expenses while the other person may not incur any expenses at all. Therefore, the expense is distributed across a large group of people in an effort to make health insurance more affordable for all insured persons.
Apart from this, the general plans are funded by the government. Therefore, they provide additional health insurance to vulnerable groups such as people with disabilities and the elderly.
Let’s take an example to understand the concept better. A person with cerebral palsy will require special treatment throughout their life. It is understood that chronic illness costs a lot of money compared to normal care. Cerebral palsy may result in a physical disability that may last throughout the patient’s life.
Treating this condition may require regular doctor visits, many treatments, and a long hospital stay. Depending on the degree of impairment, you may need private health insurance. It will involve many healthcare professionals, such as occupational therapists, occupational therapists, physical therapists, orthopedic surgeons, radiologists, pediatricians, neurologists, and so on.
Some patients may require the services of more than one. Some may even need a speech pathologist, registered dietitian, cosmetic dentists, or urologist, to name a few.
Therefore, the coverage offered can help you get some relief with regard to the burden of expenses. If you do not sign up, you may be under a lot of financial stress and may need help from other sources such as charitable organizations and community groups. Therefore, it is a good idea to take advantage of health insurance.