In this article we are going to talk about the health insurance. This type of insurance presupposes that the insurer will pay the medical expenses of the purchaser if this person becomes sick because of some pre-established causes or accidents. The insurer can be a government agency or, more often than not, a private company. The modern health care systems usually work with private companies. We can say that the health insurance is a very polemical type of insurance because there is an open conflict between the company's struggle to stay in business and the need of the purchaser to stay healthy. It is believed that because of this conflict the laws have to be reinforced, especially the regulations of this type of companies. It is also true that a lot of companies are acting more to get a profit without paying too much attention to the consumer's needs.
When you sign a health insurance policy, you have a legal contract with the company, which states that this company has to pay all the claims, which are proven to be valid without any hesitation. It is true, that a lot of companies try to fool people by purchasing re-insurance. They do this because they want to protect the company from falling apart due to a catastrophic event. However, the insurance company is obliged to pay the medical costs of the insured. There is no possibility for them to avoid their legal obligations just because they fear of bankruptcy. On the other hand, there has been shown that these health insurance companies are quite right to fear of bankruptcy because most of those who seek for health insurance are those people, who already have medical problems or are likely to have medical problems in the near future.
In the case of government health agencies the situation is slightly different. In this case, the difference of risk is not very important because they all get covered. But this system is considered to be less productive because it introduces the moral hazard issue. People, who are in favor of public health insurance, are of the opinion that people that have private insurance take less care about their health. These people also say that the private insurance's cost rises when there are more sick people who get insured than healthy. Thus, it is believed that people can keep the prices down by trying to stay healthy by leading a healthy life.
Learn more at: www.baahealth.com