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					Health Insurance Companies Act, Will Continue To Work The Old Way



Health insurance is at the center of one of the most persistent controversies and social role in recent
history. With the rising costs year after year to an unprecedented rate, and the list of uninsured
continues to grow so the dilemma of health insurance at the forefront of social and political dialogue.



For those who are trying to understand the controversial nature is difficult to know even where to start
looking. Discussion of medical insurance covers many aspects of society, customers, suppliers, hospitals,
and malpractice lawyers, and operation of private markets, the role of government in health care.
However, if someone tries to increase the multiple facets of the issue, then the understanding of health
insurance is a logical starting point.



It was more than three hundred years since the concept of health insurance has its genesis. The original
model of health insurance was one where attention is focused exclusively on disability. Only injuries that
could leave patients with disabilities have been covered, the rest was paid by the patient. Surprisingly,
this basic agreement remained in effect for the next 200 years. It was not until the 20th century model
of disability insurance has been replaced by the more familiar current health insurance, therefore,
modern insurance companies are born.



The basic philosophy on which insurance companies operate is to enter into a contractual relationship
with its customers. Customers pay insurance premiums, and instead the insurance companies cover the
cost of certain medical conditions such as most routine medical conditions, preventive and emergency
services. In many cases, some or all costs of prescription drugs are covered as well.



The obvious reason for people to buy insurance, that despite the high costs of insurance, the high cost
of medical care can be much greater if they are unlucky enough to be sick or injured. And this scenario
does not apply to reality, and health insurance companies often pay more for coverage than they collect
insurance premiums for some individuals. Understand how they can do it and remain profitable, then
you need to understand the basic assumptions on which insurance companies operate.



The first thing that health insurance companies are not monitoring the demand for coverage is to
examine the state of health. The company knows that the high-risk individuals are more likely to suffer a
huge medical expenses, and people tend to be rejected or offered coverage increased by an additional
cost.
Among those who have the medical history, which belong to the normal parameters, they are offered
coverage and become customers. Health insurance companies know that some of the statistical
calculations, can determine the percentage of insured customers who become ill during the year, and
they charge a premium sufficient to cover not only the costs but allow income-generating activities as
well.



Another way that health insurance companies control costs and maintain profits is to make customers
pay part of their service, when it was completed. This payment is in the form of collaboration - the
payment, which is an out-of-pocket expenses for which the customer is responsible.



The purpose of co-financing of multi-functional. It is not only directly remove certain costs, will prevent
people from abusing the coverage by seeking treatment unnecessary. If out-of-pocket expenses were
very low or nonexistent, people tend to consult their own doctor or pharmacist is any doubt or problem,
things that in many cases, do not require medical treatment.



At the same time, the insurance companies know that if the proportion of costs are too high, people will
remember the attention, and ultimately could lead to even greater problems for the customer and the
cost of insurance companies health.



Finally, insurance companies seek a balance in everything they do. They try to find the right balance of
price co-payments and premiums, and who seek the ideal balance of patients requiring foreseeable
needs and consistent premium payments.



They use flattery as incentives to exercise or stop smoking, which could cost them a little 'now, but it can
save you a lot in the long term. This is a business model that has evolved over the centuries and still
evolving to this day, but the basics of the business of health insurance remains relatively constant.

				
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posted:10/29/2011
language:English
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Description: its all about health fitness and insurance