Health Insurance Definition and Types, With Examples
Before you buy a plan, learn the health insurance definition and how coverage differs by type of care, claim payment method and the amount of costs covered.
Health insurance has surged in popularity across many parts of Indonesia in recent years. Plenty of insurance companies now issue health insurance products with a wide range of facilities and benefits for the policyholder, also called the insured. With a health insurance plan, you gain valuable coverage for yourself, including access to optimal medical treatment. If you are still confused or unsure how it works, the definition and examples below will help. First, here is a brief look at the meaning of health insurance according to Wikipedia (in Indonesian): a type of insurance product that specifically covers the health or treatment costs of its members if they fall ill or are injured in an accident.
Health insurance is one of the best-known insurance products among the public. It provides protection and financial security for your health care. Health insurance comes in several types, classified by the kind of care, the way claims are paid, and the amount of costs covered.
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Examples of Health Insurance by Type of Care
The first example is health insurance classified by the type of care provided. It comes in two forms: inpatient and outpatient.
Inpatient insurance protects the insured if they become ill, are injured in an accident or experience another event that requires them to be admitted to a hospital. Benefits of inpatient insurance include room charges, laboratory tests, doctor consultations, medication and even X-rays.
Outpatient insurance protects the insured if they become ill, are injured in an accident or experience another event that requires ongoing treatment without an overnight hospital stay. This type of insurance covers the cost of medication, doctor consultations, laboratory tests and other additional treatment.
Read also: Types of Insurance by Benefits and Programs
Examples of Health Insurance by Type of Reimbursement
Health insurance classified by the way the insured is compensated falls into two types: direct payment and reimbursement.
Direct payment insurance pays compensation straight to the insured who falls ill, is injured in an accident or experiences another event that affects their health. The insurance provider pays the money directly to you as the insured.
Reimbursement insurance pays compensation to the insured only after the insured has first paid the cost of the medical treatment themselves.
Examples of Health Insurance by Amount of Costs Covered
Health insurance classified by the amount of costs covered falls into two types: standard health insurance and full health insurance.
Standard health insurance is coverage that the insurer provides to the insured only in part. The insurance company pays only certain costs.
Full health insurance is coverage that the insurer provides to the insured in full, without exception. It is provided according to the contract or agreement under which both parties validate the health insurance.
That wraps up this overview of the definition of health insurance and its examples. We hope it adds to your understanding of health insurance.
