4) Co-Payment Options
Co-payment, also known as shared responsibility, is a fairly recent development within health insurance which helps consumers reduce their monthly premiums.
Co-payment means that you agree to pay a percentage of your health care costs if you become ill. There tends to be no limits to this policy.
Advantages
Your premiums are reduced compared to other policies.
If you do not need to make a claim then you will feel that you have not wasted your money on cover that you have never used.
From an insurers point of view for non-serious cases clients normally go via the NHS and tend not to make small claims via the insurance scheme. Ultimately this helps the consumer by keeping insurance premiums down.
This kind of policy often has no upper limits which does not apply to most other policies.
Disadvantages
If your bills are high then your contribution will also be high. You need to make sure that you have enough money to cover any treatment otherwise you will have wasted your insurance premiums.
Some people think that co-payment schemes may deter people from seeking the medical attention that they might need as they may be concerned about any health care bills that they may incur if they do in fact need treatment.
This type of cover does not give peace of mind unless you are fully confident that you will be able to pay for any treatment needed.
An Example of a Co-Payment Scheme
WPA: Shared Responsibility Scheme
WPA offer a Shared Responsibility Scheme where you pay25% of treatment costs up to an annual maximum of either £500, £1,000, £3,000 or £5,000. The aim is to make customers an incentive to negotiate hospital costs and keep prices down. After you have reached your annual limit WPA will pay 100% of each claim.
The feeling in the health insurance industry is that having cover makes people feel that services are free. Well isn't it? That's why we pay our medical insurance premiums, isn't it, so that we can get the care we need without having to 'worry about anything.'?
MacEwan from WPA said:
'Most policies uncouple the patient from the insurer, which leads to uncontrolled premium inflation. Under Shared Responsibility, they work together, and last year we reduced premiums by up to 8%.'
'If they think they are likely to be ill, they will go to one of our competitors,' he added.
Co-payment means that you agree to pay a percentage of your health care costs if you become ill. There tends to be no limits to this policy.
Advantages
Your premiums are reduced compared to other policies.
If you do not need to make a claim then you will feel that you have not wasted your money on cover that you have never used.
From an insurers point of view for non-serious cases clients normally go via the NHS and tend not to make small claims via the insurance scheme. Ultimately this helps the consumer by keeping insurance premiums down.
This kind of policy often has no upper limits which does not apply to most other policies.
Disadvantages
If your bills are high then your contribution will also be high. You need to make sure that you have enough money to cover any treatment otherwise you will have wasted your insurance premiums.
Some people think that co-payment schemes may deter people from seeking the medical attention that they might need as they may be concerned about any health care bills that they may incur if they do in fact need treatment.
This type of cover does not give peace of mind unless you are fully confident that you will be able to pay for any treatment needed.
An Example of a Co-Payment Scheme
WPA: Shared Responsibility Scheme
WPA offer a Shared Responsibility Scheme where you pay25% of treatment costs up to an annual maximum of either £500, £1,000, £3,000 or £5,000. The aim is to make customers an incentive to negotiate hospital costs and keep prices down. After you have reached your annual limit WPA will pay 100% of each claim.
The feeling in the health insurance industry is that having cover makes people feel that services are free. Well isn't it? That's why we pay our medical insurance premiums, isn't it, so that we can get the care we need without having to 'worry about anything.'?
MacEwan from WPA said:
'Most policies uncouple the patient from the insurer, which leads to uncontrolled premium inflation. Under Shared Responsibility, they work together, and last year we reduced premiums by up to 8%.'
'If they think they are likely to be ill, they will go to one of our competitors,' he added.
Labels: cheap health, co-payment health insurance
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