What is Private Health Insurance?
Private health insurance is a program that allows you to get treatment in a hospital as a private patient. This program also helps you pay for health care costs that Medicare does not cover, like physiotherapy. To get private health insurance you must:
- Purchase a policy from a registered health insurer.
- Pay regular premiums in order to stay covered.
Understanding Buying Private Health Insurance
Most Americans get insurance by enrolling in a group. Health insurance plan through their employers. And also Medicare and Medicaid also offer health care coverage to a population of Americans.
Medicaid is a public assistance healthcare program. Designed for low-income Americans irrespective of their age. Medicare, on the other hand, is a federal health insurance program. Designed for people who are 65 or older. Also, certain young people with disabilities and those with end-stage renal disease may also qualify for Medicare.
Private health insurance cannot be purchased directly from the state or federal government. In case your company does not offer an employer-sponsored plan, and if you are not eligible for Medicare or Medicaid, individuals, as well as families, have the option of purchasing insurance policies from private insurance companies or via the Health Insurance Marketplace.
Benefits of Private Health Insurance
Various health cover and choice
Based on your policy, private health insurance pays some or all of the costs of the following:
- Treatment in public or private hospitals as a private patient with the doctor you prefer.
- Health services that are not covered under Medicare-like physiotherapy, dental and optical.
- Private health insurance may also help you in accessing some hospital services more quickly.
When you buy a private hospital cover, you may not have to pay the Medicare levy surcharge.
Avoid paying more for cover when you’re older
Some lifetime Health Cover from the Government. The initiative enables you to avoid paying higher premiums for private hospital cover. For you to be eligible for this, you need to. Take out hospital cover before you turn 31 years old.
If you happen to be over 31 and take out hospital cover for the first time. You may have to pay higher premiums for the next 10 years. You won’t be required to pay more for extras cover.
Who can get private health insurance?
You are not mandated to take out private health insurance. But you can decide to buy one if you want to cover for more health services and choice.
Who Offers Private Health Insurance?
As stated by law, only registered health insurers can offer private health insurance.
Some health insurers can only provide policies to people who are in certain industries, companies or groups. They are called restricted insurers.