Private Health Insurance: Pros vs. Cons

According to several expert studies conducted in 2007, over 62% of individuals over the age of 65 were covered by health insurance in the United States. Most of these individuals received their health care benefits from their employer through private health insurance companies. Studies show that over 82% of individuals over the age of 65 are covered by health insurance. This age group is insured by both private and public medical care. Political reformers are currently working on state and federal levels to provide an adequate health care program to all United States citizens. Part of this reform includes evaluating the current health care system and determining its strengths and weaknesses. Political figures have examined the health care systems of other countries and have noted the advantages and disadvantages of privatized health care over public, subsidized health care. Some of the advantages and disadvantages of private health care will be explored below:

Pros

1. Private health care means that the company will have no lines when they need to see a doctor. When the need arises to be admitted to the hospital or visit a physician there will be no waiting involved. Treatment will be given as quickly and efficiently as possible.

2. Patients may select their choice of physician. Depending upon their type of insurance, patients may select a physician within their network or outside of the network. Health maintenance organizations (HMOs) only allow patients to select a physician within their network. Preferred provider organizations (PPOs) allow patients the option to select a physician in-network or out-of-network with a additional fee. Indemnity health insurance allows patients to select any physician or hospital without an additional fee.

3. Most individuals with private insurance will receive a private room in a single gender ward. Some of these individuals will also have a bathroom in their hospital room.

4. Some hospitals may allow unrestricted visiting hours for guests.

5. Patients will receive care from experienced doctors rather than medical students in training.

6. Patients may request a specialist when they feel that they need a specialist without waiting for a referral from a doctor.

7. If a catastrophic medical condition occurs, the patient will have enough money to cover most medical problems.

8. Patients may select physicians with only the most advanced equipment and the best credentials to ensure the best care.

Cons

1. Private insurance is more expensive than most other options. Individuals who do not receive private insurance through their employer will spend significantly more money than those who must purchase individually.

2. There are many options. The more flexibility the patient wants, the more money they must pay. Indemnity health insurance is by far more expensive than an HMO.

3. Some private insurance only pay up to 80% of the costs of care. Therefore, there are still several out-of-pocket expenses that patients must budget.

4. HMOs will only allow the patient to visit the physicians and hospitals within their network.

5. PPOs charge more for patients to visit a physician or hospital out-of-network.

6. Some insurance options allow patients to save money tax-free. These options will require the patients have a high deductible insurance. With some of these options, you may lose money saved in the flexible savings account if it is not used by the end of the year. Since you cannot predict when you will be sick, the patient should always keep money available for the deductible.

7. Patients must pay the monthly costs of private insurance whether they need the services or not.

8. A patient with pre-existing conditions may find it difficult to obtain indemnity insurance with pre-existing conditions. Individuals with cancer or diabetes may not be able to obtain insurance inexpensively

John Clark started numerous websites including SaveOnQuotes.com which allows you consumers to compare car insurance quotes, health insurance, life insurance, home insurance, 4g internet and much more. Expert resources to help consumers save money on life's big decisions.

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