is an alternative term for adverse selection, which some people
find absurd. But it is an industry truth that the people who actively
seek health insurance are most likely to have been adversely affected
by either past medical conditions, or expenses.
it may be that as the signs of age creep up and we find ourselves
unable to run at full throttle we stop to contemplate the effects
of age and failing health.
it is the latter, health insurance premium rates are generally higher,
and often unaffordable. The irony is that young people who can get
low premiums are not interested. Being unable to see beyond ones
own nose, was a favourite phrase my father would use to describe
coverage is another idea young people find absurd. Dual coverage
is the concept of being covered by two different health plans. Many
people misunderstand how this works. And, yes it is legal to have
two health plans.
most health plans are co-insurance plans, it is unlikely one plan
will reimburse 100 per cent of the medical bills. In addition most
health plans have a dollar limit on how much it will pay.
second health plan is useful in that it will pay some of what the
first plan does not. And yes, you can submit claims to both insurance
companies for the same ailment, provided you declare that fact.
Then both providers will co-ordinate the claim.
what is co-insurance? Co-insurance means the insured himself will
take up a portion of the medical bill, and the insurance company
will take up the balance. Typical co-insurance factors are 20-80
or 30-70. The 20, means the insurer will take up the first 20 per
cent of the bill, and the insurance company will take up the next
80 per cent.
addition you will have deductibles, which are also part of the expenses
the insured will have to take up. This is a small dollar amount
that the insured pays first. For example, if prescription drugs
must be purchased, the insured may have to pay the first $30, in
is necessary because of the moral hazard involved in any system
that allows the human animal to make a monetary claim. There seems
to pervade in society a tendency to inflate claims or else to neglect
example, you lock your vehicle when you park, for fear of theft.
If you felt the insurance company will reimburse you for it regardless,
you would not bother to secure it. That will lead to endless claims,
and the insurance company will die.
if you do not shoulder some of the concerns and expenses for your
health, your claims will be endless. I recall looking at claims
by people who felt they should be reimbursed for Limacol and Listerine.
Such claims are frivolous and cannot be entertained.
remember group health plans end when you leave the job or retire.
You will need to have some personal insurance plan, in addition,
that goes with you at least up to age 70 yearsmedical bills
has never been about the absurdity of someone fooling someone else
to make money. It has always been about pooling resources from the
society by willing participants, to pay bills for those who develop