What is a health insurance and how it works

Insurance is a mutual negotiation between the owner of the policy (insured) and the risk taking party( insurer), to wrap the cost of treatment for any unanticipated illnesses, mishaps, and injuries that happen to a person after he or she buy the policy. So, in other words it promises payments to a person in the event of illness or grievance and can be called as a "defense plan".

The amount paid by the health insurance policy for the medical expenses during any kind of illness or mishap depends totally on the premium paid the policy owner according to the chosen policy of High or low premiums.

What is an affordable health insurance?

• In America few years back people used to have indemnity assurance coverage, in which they can avail facility from any medical service provider either a hospital or a doctor.
• In that scenario, the policy owner as well as the insurance firm was liable to pay the expenses incurred as per the contract policy of medical insurance.
• But nowadays the concept of affordable health insurance has come into being. In this kind of insurance there is an organized health care plan in which there is an efficient method of providing both medical services and also paying for those services.
• The government has so meticulously planned that every American is able to purchase a medical insurance policy personalized to meet his requirements.
• With the help of this kind of insurance one can choose any doctor or hospital, choose convenient payment options avail coverage of prescription drugs.
• Thus, Affordable health insurance policy is able to take care of expenses such as price of drugs, examinations, doctor's fees, charges of hospital room, surgeries sometimes even emergency surgeries and haulage etc.

How and why affordable health insurance helps?

According to the survey in the year 2004 in USA, it was reported that 245.3 million people had health insurance coverage. So one can anticipate how far the number has increased till now. But still 45.8 million lived did not have health insurance in the same year.

Case Study and statistics for affordable health insurance policy

• Let us see why personal and affordable health insurance is all the more important in a country.
• In our country and most of the developing countries very less is expensed on the growth of medical and health sector because the basic developmental and infrastructural needs drag the attention due to which the government hospitals are deficiently facilitated particularly for any advanced treatments.
• Hardly 2% of the GDP is spent on the health in our country.
• In such a scenario with the help of health insurance one can avail the benefit from the insurance firms as per his financial capabilities.
• So health insurance in India is being warmly welcomed by the citizens, senior citizens of the country.
• Developed countries spend as much as 6% to 8% of their GDP on health area.
• Nowadays, some of the highly regarded companies offer health insurance assistance to their employee. Some countries offer free health insurance to their citizen. In India railways and army employees of the central government are provided health benefits to almost 20 million people in our country.

Affordable Health insurance cover should be able to take care of costs such as cost of drugs, investigations, surgical procedures, doctor's fees, cost of hospital room and sometimes even emergency transportation.

These are the following Affordable Health insurance companies which are recognized by IRDA (Insurance Regulatory Development Authority)

• National Insurance Company
• ICICI Lombard
• Tata AIG
• Royal Sundaram
• Star Allied Health Insurance
• Cholamandalam DBS
• Bajaj Allianz Apollo
• AG Health Insurance Company
• New India Assurance
• United India Insurance

Evolution in affordable health insurance

• Insurance industry in India has witnessed a sea of change since the opening of the sector for private participation. Most of these insurance companies have appointed Third Party Administrator thus landing into the concept of "Reinsurance".
• The introduction of this concept of reinsurance is profitable for both the insured and the insurer. While the insurers are gained by reduction in their payable amount at the same time the insured is happy by superior medical facility.