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| Commercial Health Insurance |
What is commercial healthinsurance? It is a type of financial services which is very complex involving three elements cannot be separated. They are the participant or the enrollee, the service providers and the insurance agent or insurer. Efficiency and profit are the main demands as the financial service company. The commercial health insurance is also called the private health insurance. Business insurance is a voluntary agreement, held on self-determination with a view to protect the illness or the accident. In general, private insurance managed by private companies, firms, and governments. The commercial insurance is now developing into the regulated health insurance. The World Bank reported in 1988 that the insurance should take place as the substitute of the principle of commercial or private health insurance. By registering as a client of the policyholder in an insurance service provider, the customer will get a guaranteed return on investment at the end of the contract. The insurance which is earmarked for the investment also gives the flexibility in choosing the insurance period. There will be three options when the insurance period the policyholder clients such as 5 until 10 years. The commercial insurance can help the customer to organize the finance. The obligation to pay the premium paid on a regular basis actually indirectly forces the customer to provide a reserve fund that is used in sudden event like illness or accident. The health insurance will help you to reduce unexpected expenses are usually much higher than the daily routine expenses or even monthly. With the healthcare insurance, the customer doesn’t need to pay full or even pay zero money because the service provider has prepared the compensation.
The advantages of the commercial health financing system
· The agent or the organizer is not limited
· The management or the provider is responsive and creative
· The insurance has various services or products
· The claim is easy to manage and straightforward.
· The service is good so the customer is satisfy
· The insurance provides the additional products based on the customer needs
The disadvantages of commercial health financing system
· There is cross subsidies through the customer
· Sometimes, the insurance don’t cover the whole need
· The premium paid is high
· The administration fee is high cost
· The high cost for the promotion and the product marketing
It must be realized that there is no perfect health financing system. But in the other side, every people must realize that the health insurance is as important as the need of food, clothes, and home.
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