563 Assignment 05 CT

BENEFITS AND REQUIREMENTS OF HEALTH INSURANCE

Running head: HEALTHCARE INSURANCE 1

HEALTHCARE INSURANCE 4

(Balpalli, 2016)

Introduction

Insurance is the process of protecting an individual from a particular financial loss that can be incurred from a specific action. Heath insurance is the process by which all medical expenses are taken care of by the insurance policy that protects an individual.

The presentation will identify advantages of health insurance in the following areas:

· Health impacts

· Financial advantages

· Sanctions

(Techbrainiac,2017)

Health Impacts

Health insurance has the following advantages on healthcare activities (Cleverley, 2010):

-Health insurance improves the quality of healthcare services offered to patients in all healthcare facilities.

-Health insurance has helped in improving the state of healthcare

-Facilities by ensuring that the facilities are equipped with the required equipment.

-Healthcare insurance helps ensure patients receive quality healthcare services regardless of the price.

Financial Advantages

Health insurance has several financial benefits to both individuals and insurance agencies. (Staff, Field & Shapiro, 2012).

The main reason and function of healthcare insurance is to take care of all financial expenses that are incurred.

The following are examples of financial advantages of healthcare insurance:

-Protects an individual from unexpected, high medical cost.

-Individuals contribute less in advance for their future medical cover.

-All medical expenses are taken care by the insurance.

Risk Pools

Risk pool is a risk management practice used by many insurance agencies.

It is achieved when an insurance company pulls together several risks into one pool that can take care of risks in question.

The pool formed from the pulled risks is then used in taking care of catastrophic risks and other risks such as medical insurance.

HEALTHCARE INSURANCE 2

(Otto, 2014)

Avoiding Sanction or Fines

Sanction is a threatened penalty that is imposed by the authorities to an individual with a reason of missing or evading to pay certain rates.

Health insurance is advantageous as it avoids sanctions or fines in the following ways:

-Insurance pays all financial expenses incurred by a patient while receiving treatment.

-Medical insurance helps in making sure that an individual receives best medication and stay healthy so that they can be able to take care of all their expenses and pay their taxes.

-Insurance can pay all unexpected medical expenses incurred at any point.

Figures and Statistics

According to research conducted by national Championship, insurance has significant impacts on the healthcare services offered to patients (Brouste, 2018).

Statistics shows that insurance has benefit many people in several ways as it has made it possible for many people to get healthcare services.

The following are examples of financial statistics:

· Martial problems

· Cash flows

· Social security retirement or disability

· Lack of savings

· Statistics by Gulf Business shows that Saudi Arabia is the leading nation in health insurance premiums over the years.

· Health coverage has also been redefined in Saudi Arabia so that to cover more health issues.

(Marmore, 2017)

Conclusion

In conclusion, healthcare insurance has various benefits to individuals who are covered. The following is a summary of the benefits of healthcare insurance:

-Health insurance takes care of all the medical cost incurred by a patient.

-Health insurance helps improve the condition and nature of healthcare facilities.

-Healthcare insurance helps improve the quality and services offered by healthcare practitioners.

For the above reason, everyone has to take a healthcare insurance for their personal gain.

References:

Al-Maarik, Y. (2017). Saudi Arabia No Visa Without Health Insurance. Health Beauty. Available at: http://healthebeautye.blogspot.com/2016/08/saudi-arabia-no-visa-without-health.html .

Brouste, A. (2018). Statistical inference in financial and insurance mathematics with R. London Kidlington, Oxford: ISTE Press Ltd Elsevier Ltd.

Čižek, P., Härdle, W. & Weron, R. (2011). Statistical tools for finance and insurance. Berlin Heidelberg New York: Springer.

Cleverley, W. (1989). Handbook of health care accounting and finance. Rockville, Md: Aspen Publishers.

Health Insurance. (2018). BankBazaar.com. Available at: https://www.bankbazaar.com/insurance/health-insurance.html?ck=Y%2BziX71XnZjIM9Zw

IMTJ. (2015). GREEN LIGHT FOR COMPULSORY HEALTH INSURANCE IN SAUDI ARABIA. International Medical Travel Journal (IMTJ). Available at: https://www.imtj.com/news/greenligt-compulsory-health-insurance-saudi-arabia/ .

Marmore. (2017). Healthcare in Saudi Arabia – where are the opportunities? Gulf Business. Available at:

http://gulfbusiness.com/healthcare-saudi-arabia-opportunities/ .

Medical Insurance. (2018). Fakihivf.com. Available at: http://fakihivf.com/medical-insurance/ .

Otto, E. (2014). Employees benefits (Pros&Cons). Business, Economy & Finance. Available at: https://www.slideshare.net/evelyneringia/employees-benefits-proscons .

Preker, A., Scheffler, R. & Bassett, M. (2007). Private voluntary health insurance in development: friend or foe. Washington, D.C: World Bank.

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Staff., Field, M. & Shapiro, H. (1993). Employment and Health Benefits: A Connection at Risk. Washington: National Academies pre