Medical Expense Insurance Essay

Medical expense insurance is health insurance that protect insured against the risk of high health care cost by pooling risk for some or all of the insured. It generally cover any cost incurred in the prevention as well as treatment of injury or disease. Its coverage of hospital expense include dental care, hospital visit, drug expense, surgical expense within a certain limited. If insureds have poor health or certain health history, premiums are likely to be higher or uninsured. Insureds are still required to pay all or part of medical expense by themselves depending on the minimum deductible expense of the policy. If the medical expense excess the deductible amount, insureds are required to pay first deductible to the medical institution,

Also, individual information about age, health history, or tobacco use are associate with the premium settings. People age over sixty five or have poor health are likely to be uninsured. Group coverage of medical expense insurance is usually provided by employer to employee that offer the same benefits to all employees or members of the group. Group policy is the employee benefit plan because they will have a several advantage to the policy. First, the policy is much more affordable compared to having individual policy because a number of employees are covered under one policy and risk of the group insurance spread over the entire group rather than one person. Second, the benefit received by group members is tax free. Third, employee or members who might be unable to get individual insurance will covered under the group policy because insurer have to cover all employees. Also, there are no need for physical exam or strict assessment. All the eligible people will be covered regardless of current age, physical condition, or certain health history. The premiums will be calculated based on group characteristics as a whole such as average