What is the future of medical insurance after the current global health crisis?
Almost two months ago, public health and safety of individuals became the main concern of more than 7 billion people who live on earth because of the Coronavirus epidemic that threatens the survival of mankind and directly affects human health. This was our strongest warning bell to return to interest in strengthening our personal immunity and treating diseases that multiply the effect of the virus. Besides, our exposure to diseases has increased due to our current lifestyle which exposes young and old to health problems, which has affected our frequent visits to doctors.
The costs of visiting doctors and hospitals are no longer simple, and conducting any type of exams in addition to purchasing prescribed medications doubles the cost. Here where the role of medical and health insurance appeared in the lives of individuals.
What is the pivotal role that medical insurance plays in the upcoming period, its importance and advantages?
Before we became acquainted with the role of medical insurance in the COVID-19 epidemic crisis, we must clarify the concept of medical insurance first.
What is medical insurance?
Medical/health insurance is a type of insurance coverage that is paid to cover the costs of medical and surgical treatment incurred by the insured during his examination, diagnosis, and treatment. Where health insurance can compensate the insured for expenses incurred from illness or injury, or pay the caregiver directly depending on the type of coverage. It may also include coverage of work interruption allowance for his temporary or permanent disability.
The coverage provided by medical insurance varies from one document to another. For example, some individual medical insurance companies refuse to cover vision correction operations and consider it a cosmetic procedure, and this also applies to orthodontic treatments.
Fact: The world's first health insurance policy was issued in Germany in 1883.
The medical insurance system concept
The medical insurance system or method is based on the principle of distributing health care costs to individuals so that everyone pays an equal share. Thus, healthy people cover the costs of treating sick people, which reduces the burdens and costs incurred when treating individual conditions.
This system ensures that medical care reaches all of its needers in return for a small amount of money to be paid by all individuals involved in the insurance system.
History of medical insurance in Egypt
In 1957, the first medical insurance document in Egypt was written between the United Insurance Company and the Bank of Alexandria, which was written in the Arabic language. In the same year, another document was issued between Misr Insurance Company and Asustander Petroleum Services.
In 1964, it was an important turning point in the path of health insurance in Egypt, where a law was issued to apply health insurance to government employees and public organizations in exchange for a contribution of 3% of workers' wages per month paid by the employer, in addition to 1% paid by the employee.
Now medical insurance is online for individuals. Instead of visiting the company's branch, you can buy medical insurance through a website. Online purchase requires an electronic copy of some documents and payment by credit card.
Why do you get medical insurance?
The idea of health insurance is designed to make sure that if you need medical treatment in the future, you will not have to worry about waiting lists or pay the high cost of treatment in advance because medical insurance will pay all or some of your bills.
It also ensures that you are quickly diagnosed and treated, and offers you an immediate referral to a consultant and admission to a private hospital at the time and place that is convenient for you.
It gives you the advantage of choosing a private hospital from an agreed list provided by the insurance company that provides you with comfort and privacy, which you will not necessarily get as a regular patient.
In short, the main benefits of private health insurance guarantee you:
Shorter waiting times for treatment, better facilities, faster diagnosis, and the right to choose the proper facilities and appointments for you.
Types of medical insurance
There are two main types of health insurance:
1- General or governmental health insurance: In this type of insurance, the state supports health care in return for a premium.
2- Private Health Insurance: The American health care system is heavily dependent on it.
In a National Health Interview Survey, researchers found that 65.4% of people under the age of 65 in the United States have some type of private health insurance coverage.
The importance of private medical insurance
It provides the best comprehensive insurance according to your needs as an individual, family, or institution.
For example, most companies offer health insurance for their employees, and employees believe that this insurance is sufficient, but the problem is that this insurance is not comprehensive and sometimes only covers simple costs of treatment, so it is better to get your own insurance, which you can choose in proportion to your financial capabilities.
2- It improves the level of medical services provided,
By providing stable and continuous financial resources and urging more diversification and competition in providing medical services between insurance companies.
3- It provides additional care from the doctor and the hospital.
You will not refuse routine screening visits to ensure your body is healthy and follow up on your health, nor will you be afraid to spend another night in the hospital because of the room rate, or to buy less expensive and effective drugs.
4- Raising the level of health and productivity of the individual.
It guarantees your income protection and gives you a feeling of psychological security and reassurance from the risk of sudden illnesses and surgeries.
Medical insurance in the United States of America
The United States of America is the first country in the world to invest in medical insurance.
The net cost of private health insurance from 1960 to 2017 in America
In 2017, 62.6% of Americans had private health insurance, and in 2019 the figure was 67.3%. The United States spent approximately $ 10,200 USD per person in 2017, at the beginning of this year 16 percent of the U.S. population had no health care coverage but this value fell to 8.5 percent by 2018.
The future of medical insurance
Yes, failure to obtain health insurance saves you money because you do not pay insurance premiums, but it may expose you to financial risks if you suffer from a serious illness or sudden surgery. After the health crises that the world is going through today, individuals will increasingly take an interest in their safety and that of their families, and health awareness of the importance of health insurance will increase, as it is now no longer compulsory, but it has become necessary.
In America: Health insurance coverage is no longer mandatory at the federal level as of January 1, 2019.
With medical insurance, you are assured of a safer future in terms of health and a sense of reassurance about yourself and your family. This makes health insurance policies crucial for individuals, especially if they are responsible for the family's financial well-being.
We, at "Brokerage" Insurance, will work more as a lifelong partner to promote a better healthy life for each client by providing all the medical insurance documents and services online through our website and our mobile application soon.