Question

In most advanced countries, in addition to public insurance, there are supplementary and complementary private insurance systems. Supplementary and complementary insurance systems provide their holders a variety of services, including bypassing waiting lists and covering co-payments. In many countries, including France, the ratio of the population covered by these insurance systems exceeds 80 percent. Discuss the potential effects of the availability of supplementary and complementary insurance on people’s health expenditure and relate it to the concepts discussed in Health Care.

Answer 1

Insurance that provides access to services that are already available within the publicly financed health insurance scheme (presumably affording faster access, greater choice, or other amenities) is known as Supplementary Insurance. On the other hand, Complementary Insurance represents the insurance for co-payments, meaning that it ensures the difference in the price of a health service. As mentioned, in France, the ratio of the population covered by these insurance systems exceeds 80 percent because of the favorable nature of the insurance.

With the subscription of supplementary and complementary insurance, one can have the following potential effects on health expenditure:-

1. Savings

Savings of money is one of the biggest reasons why people are inclined towards Complementary and Supplementary Insurance. Giving financial support when in need also helps in controlling the expenses such as medical accessories, health services, and non-urgent ambulance transportation, etc.

2. Income Tax Benefits

This is another supporting factor for the savings of money. Because the amount of premium insurance is deductible from the income tax as a 'special tax'.

These above two factors significantly affect Health Expenditure of individuals while ensuring safety at the same time.