The global health insurance market stands at a value of over $3,153 billion, and it is expected to grow over time. Health insurance is a familiar term, even to individuals who are yet to start paying the premiums. The reason behind the market’s growth is due to the vital role of health insurance. All households must have health insurance policies; they will give your family the kind of protection that you wouldn’t find anywhere else. Here are the uses of health insurance.
1. Financial protection
Healthcare can attract overwhelming costs. If you are not prepared, this can take a toll on your finances. In case of a personal injury case like the Viread Lawsuits, insurance would take care of you as you wait for settlement: click here to learn more about the lawsuit. You never know when disaster strikes, and the magnitude of it. With insurance, you can reduce the impact on your finances. Health insurance can take care of even the out of pocket expenses.
Also, remember that there are high-risk wellbeing issues. Hemophilia and other terminal health conditions require treatment for an extended period. That can be a real financial drain, especially when the patient is not able to participate in income-generating activities. Wellbeing insurance provides coverage, making health costs for such conditions as low as possible. That gives the patients and their families financial immunity to a significant extent.
2. Negotiating the price of healthcare services
Most people may not be aware of this, but with a health insurance policy, you can consult healthcare services, which usually come at a fixed price. Note that wellbeing insurance companies are out to make good deals so that they, too, also remain with something to fund their operations. For that reason, they negotiate with healthcare providers to get lower rates and discounts for their clients.
If you are a plan member with a given insurance company, you will get a discounted rate. That is usually negotiated before engagement or agreement. Someone who is not insured by any policy will, however, not get the discounted rate. The incredible thing is that the prices can go as low as almost 50%. This way, you can get to save a lot on expensive services.
With a wellbeing insurance policy, you do not have to struggle with costly services. Your insurance company has already done that for you.
3. To encourage healthy living
That might come as a surprise: how can insurance possibly sensitize healthy behavior? Well, it is pretty simple, and through incentives. A good example is whereby clients who are smokers are encouraged to quit by being promised deductions on the premiums they pay. That has been experimented and seems to work pretty well.
The other way is by encouraging the clients to join wellness and fitness programs to get deductions on their premiums too. Also, with wellbeing insurance, patients can be less reluctant about going for medical check-ups. That contributes significantly to preventive health services, which promotes overall healthy living.
Also, there is the No-claim bonus on wellbeing insurance. This bonus is given to plan members who have not claimed their premiums throughout a year. Remember that the most significant percentage of wellbeing insurance plan members do not use their insurance over a long period. Thus, their bonuses accumulate, and they get to benefit from it. For instance, it may come as a great aid when you need it. That alone is enough reason to encourage wellbeing lifestyles among the plan members.
Through this, they may reduce the instances at which they may need medical attention. Their bonuses accumulate, and they get to use them when they are most needed.
4. Encouraging healthcare providers to improve the quality of their facilities and services
To be listed as eligible clinics for wellbeing insurance clients to get medical services, they need to meet specific requirements. That is mainly in the light of quality. Knowing that clients look at the quality ratings of the hospitals before they select it, medical providers make an effort to improve the quality of their services. In this way, the wellbeing industry experiences overall improvement.
Note that one of the primary objectives of wellbeing care providers, apart from ensuring that their patients are in good health, is revenue generation. They are there for business, and they work day and night to attract more customers. Since quality is one of the factors that give them a competitive advantage, they give it much consideration. They will hire qualified practitioners, take them through the necessary training, and equip their facilities with the required equipment to meet the medical needs of the consumers.
5. Tax deductions
Some people use wellbeing insurance to get tax deductions from their gross salaries. Medical costs are usually high up in the list of your expenses. Medical expenses continue to increase by the day, and this puts consumers in a hard place financially.
The good thing is that the financial burdens can be lifted through tax deductions on the premiums paid. There are two main ways through which consumers pay for premiums. One is directly from the employers’ payrolls. The other way is by claiming deductions if your medical premiums hit a specific limit; that is, you can get a tax write off if they are high enough.
Self-employed individuals also get to benefit from the same: there is a criterion that they are supposed to meet.
Wellbeing insurance companies play a very critical role in protecting their clients, through means of pooling resources. They also tailor-make their products so that they meet the needs of different groups of patients with different things. It is also pretty affordable as there are different premium plans: you only have to choose one that works for you. Financial protection, sensitizing superior medical services, and promoting healthy living are some of how wellbeing insurance is used. Leaning on the financial side, plan members also use it to get a tax deduction. In other cases, it has been used for wealth distribution.