Medical and hospital expense policies were very truly introduced in the 20th century. During the 1930s, individual hospitals very truly began offering a very large number of services to individuals on a basis called the prepaid basis in which the individuals have to pay an amount first, finally leading to the development of an organisation called the Blue Cross.
A policy of health insurance is very truly a kind of contract between an individual and an insurance company, agency or provider. This kind of contract between an individual and an insurance company, agency or provider can very truly be renewable monthly or even annually also. The amount and type of health care prices that will very truly be covered by the plan of health insurance are really specified in advance, in the evidence of booklet of coverage or in the member contract.
The amount that is to be paid very truly by the holder of the health insurance policy to the Health Insurance Company, agency or provider on month to month basis is called the premium. The amount that is to be paid by the holder of the health insurance policy before the plan of health insurance very truly pays its share. The payment that is to be paid by the holder of the health insurance policy before the plan of health insurance pays for a particular service or visit is called copayment.
Instead of paying a fixed amount of money called the copayment the policy holder must pay some percentage of the whole price. This concept is called coinsurance. The holder of the insurance policy is expected to pay the whole price of non-covered services and that too from their own pocket. This means that all the services are not at all covered. This is called exclusions. There are a very large number of heqalth insurance plans, which very truly pay for health care only and that too upto a certain amount of money only. The holder of the health insurance policy might be expected to pay charges in excess to the maximum payment for a particular service under the plan of health insurance. This is called the coverage limits.
The amount that need to be paid by an insurer to a health insurance company, agency or provider, for which the health insurance company, agency or provider very truly agress to treat all the members of the insurer. All these concepts must very truly be known by each and every person.
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