In case you don’t know, health insurance is a type of insurance that is given on agreed terms in case the insured falls ill or needs medical treatment. The life insured may have a chronic condition that will require medical care for years to come. Let’s know more about it.
Who pays for the medical costs?
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. It is actually a kind of agreement or contract between you (the policyholder) and the health insurer. The purpose of the agreement or contract is to provide protection against costs. Sometimes the costs are so high that the sick person cannot pay the bills. As a result, the person cannot receive the care they need to recover.
Although you pay a monthly or annual premium, keep in mind that the amount of premium you will pay is 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 non-profit organization, private company, or government agency. To calculate costs, the company gets an estimate of the collective medical costs of all people in the state. The risk is then divided among the insured.
Conceptually, the insurer knows that one person may face huge unexpected healthcare costs, while the other person may not incur any costs at all. So the cost is spread over a large group of people in an effort to make health insurance much more affordable for all insured lives.
Apart from this, public plans are funded by the government. That is why they offer additional health insurance for vulnerable groups such as people with disabilities and senior citizens.
Let’s take an example to better understand the concept. A person with cerebral palsy needs special treatment throughout their life. It is clear that a chronic illness costs much more money than standard care. Cerebral palsy can lead to a physical disability that can last the patient’s entire life.
Treating this condition can require regular doctor visits, many therapies, and long hospital stays. Depending on the degree of disability, you may need special health insurance. Many healthcare professionals will be involved, such as occupational therapists, occupational therapists, physical therapists, orthopedic surgeons, radiologists, pediatricians, neurologists, and so on.
Some patients require the help of more than one. Some may even require a speech pathologist, registered dietitian, cosmetic dentist, or urologist, to name a few.
Thus, the coverage offered can help you get some relief from the burden of expenses. Failure to sign up could put you under great financial strain and may require assistance from other sources, such as charitable organizations and community groups. It is therefore wise to use health insurance.