A health insurance policy is an agreement between a person or organization and an insurance provider, whereby the provider agrees to pay premiums in exchange for the covering of medical costs. Although there are many variations in health insurance policies with regard to coverage, cost, and eligibility requirements, in general, they offer financial security against the exorbitant expenses of medical services.
The following are some essential elements of health insurance policies:
1. PREMIUM
The sum of money that the policyholder must pay the insurance company in order to continue receiving coverage is known as the premium. It is possible to pay premiums on a monthly, quarterly, annual, or other basis.
2. Coinsurance:
Following the payment of the deductible, the policyholder is responsible for a certain percentage of covered medical expenses. A health insurance policy with a 20% coinsurance rate, for instance, would require the policyholder to pay 20% of eligible medical costs and the insurance company to pay the rest 80%.
3. Quality of Care
Policies aimed at enhancing the efficacy, safety, and efficiency of medical services while also encouraging the use of evidence-based procedures and patient-centered care.
4. Healthcare Financing :
Regulations pertaining to the payment and delivery of healthcare services, such as taxation for healthcare funding, private health insurance policies, and public health insurance programs