Insurance World

Health insurance is designed to offer financial protection against losses experienced due to illness, accidents, or injury. This type of insurance comes in many forms that offer differing levels of coverage. It can be purchased as part of a group policy or may be purchased by an individual.

Group policies are generally purchased through an employer, associations, or unions. They may be less expensive because the costs associated with administration are reduced. In addition, the employees or association may pay part of the premium.

Group health insurance has become an incentive for potential employees who are trying to cover their or their families’ health care expenses. Some policies offer managed care. Depending on the policies of a managed care provider, preventative health care may be part of the plan. Preventative measures may include regular checkups.

Individuals may purchase individual health insurance polices in the absence of company provided benefits or if they are self-employed. Generally individual health plans can be more expensive, however, they also have some benefits.

For example, individual policies can be customized for your specific needs. Shopping around for health insurance can be helpful by allowing you to compare the benefits and cost of different types of coverage. Consulting with caring agents will help you determine the policy that is best for you and what level of coverage you’ll need.

You may be able to save money on the premium of your policy if you carry a higher deductible. The deductible is the amount of out of pocket expenses you pay before your coverage begins.

Health insurance can cover a variety of expenses. For example, it may pay for the cost of hospitalization or surgery. It may also pay other hospital expenses such as the cost of the hospital room.

All health insurance policies are not equal in this regard. Some policies will pay a flat rate daily for the cost of a room. Other types may pay everything after the deductible for the room.

Health insurance may also cover expenses due to a disability, and may cover rehabilitation such as physical therapy, or aftercare. Disability insurance, a type of health insurance, may pay expenses for loss of income in addition to health care expenses.

Some policies also provide benefits for medication or necessary medical devices such as a pacemaker. Also, some contemporary health insurance policies provide some dental coverage. However, it’s important to note that levels of coverage will vary between policies, sometimes significantly.

Health insurance may also cover you for existing conditions; however there may be up to a year delay before coverage begins for policies of people with pre-existing conditions.

Health insurance may seem like an undue expense when you are young and healthy, but it’s invaluable when you need it most. Consult with a health insurance agent to make sure you have a good understanding of the benefits of your plan. They can help you answer any questions you may have about the conditions and benefits of your policy.

It can also be helpful to compare a number of health insurance companies, so you can get the best policy for your individual needs at the lowest rate.

Becoming educated about your policy from enrollment on can help reduce stress levels during a medical emergency. In this way you can also be more proactive with your own care. And you can have peace of mind knowing that if an unexpected situation happens, you will be covered.

For more information, see Make-Getting-Insurance-Easy.com/health-insurance

About 87 percent of the residents of Germany have statutory health insurance, i.e. GKV. As of May 2005, the GKV relied on 321 non-profit sickness funds to collect premiums from their members and pay health care providers according to negotiated agreements. Those who are not insured this way, mainly civil servants and the self-employed, receive health care through private for-profit insurance.

An estimate of 0,3 percent of the German population (around 250,000 people) has no health insurance at all. Some of them are so rich that they do not need it but most of them are poor and receive health care through social assistance.

Germany’s statutory health insurance

There are three different categories of sickness funds: primary funds, substitute funds and “special” funds. Some workers are required to be members of the primary funds, e.g. if they earn less than the than the income ceiling (2006: EUR 3,937.50 per month / EUR 47,250.00 per year). Those earning more than that ceiling may be members on a voluntary basis, or they may have a choice of funds. Some of them automatically become members of a particular fund for example because of their occupation (company-based funds) or place of residence (local sickness funds). Some occupations have their own “special” funds, e.g. farmers or sailors.

Substitute funds are divided into two kinds: they provide health insurance to both white collar workers and blue collar workers earning more than the income ceiling. Membership is voluntary.

Both, employers and employees pay half of a member’s premiums, which in 2006 averaged between 13 and 14 percent of a worker’s gross earnings up to the contribution assessment ceiling (2006: EUR 3,562.50 monthly / EUR 42,750.00 p.a.). Premiums are fixed according to earnings rather than risk and are unaffected by the respective member’s marital status, family size, or health. Premiums are the same for all members within a particular fund with the same earnings.

Germany’s private health insurance

About eleven percent of Germany’s residents pay for private health insurance provided by some 40 for-profit insurance carriers. Many of those choosing private insurance are civil servants who want to secure percentage of their medical bills not covered by the government. Some sickness-fund members buy additional private insurance to cover such extras as a private room or a choice of physicians while in a hospital. Otherwise, the medical care provided to the publicly and privately insured is identical. In both cases the same medical facilities are used. Self-employed persons earning above the income ceiling must have private insurance. Members of a sickness fund who leave it for a private insurance carrier are not allowed to return to public insurance.

As opposed to the statutory heath insurance, contributions to the private insurance depend on the member’s age, gender, occupation and health status, that is, the individual risk. Although private insurance companies pay health care providers about twice the amount paid by the primary sickness funds, private insurance is often cheaper than statutory health insurance, especially for younger policyholders without dependents. As is the case for members of sickness funds, employees who have private insurance have half their premiums paid by their employers.