The phrase “health insurance” is normally used to explain a type of insurance cover that pays for medical expenses to the policy holder. It includes medical insurance covering long term or short term disability. There are many companies who provide health insurance to individuals or a family as a whole companies involved in such business can be government companies with social obligation in mind, or private insurance companies with profit as a driving factor. Government as well as private companies offers discounts for covering the entire family under health insurance but that does not mean that individual are kept hanging even they can own a policy bond.
Whether health insurance is from private or public company the fundamental are the same: Every group or individual pays predetermined insurance premium yearly or half yearly to protect themselves from an uncertain medical expense during a particular period. Government has an social obligation and therefore their premium may be lower as compared to private players who has just one motive “Profit”
Money collected from each individual or a family may be small but the volume may be too high. Where by the policy holder can get a good, fast and reliable health care solution in top hospital and the company can earn sizeable revenue from the volume of premiums and anticipated renewals.
