Question

Introduction about insurance and patient reimbursement.

Answer 1

Introduction of insurance

In layman language, it means ensuring against the risk. There are various insurance companies who provide the mechanism of risk transfer and ensures either full or partial financial compensation to the loss or damage caused by event(s) which is beyond the control of the insured party.

On the practical ground, Insurance is a legal agreement between the insurance company and individual (who want insurance). The insurance company makes a legal promise to cover up the losses of the insured on the happening of a contingency/uncertainty. That contingency could be destruction/damage/death of individual or property. The person pays a regular premium to the insurance company for those contingencies and in return, the insurance company gives legal promise to cover up the loss.

There is an Insurance policy in which insurer and the insured get a legal contract for the insurance. This insurance policy carries all the terms, conditions and circumstance under which the insurance company will pay out the insurance amount to the insured person or nominee holder.

there are various types of insurance like home insurance, education insurance, vehicle insurance, health insurance, and life insurance etc. Some of the insurances give tax benefits also.

Patient reimbursement

Reimbursement for services directly to the patient and varies from person to drug or devices. This reimbursement includes cost-share. It is a very complicated, unstructred. Lots of complexities are associated with patient reimbursement. In this, the service provider has to make the patient understand the proper procedure to follow in order to receive appropriate reimbursement.