Definition Health insurance is insurance against the risk of incurring health care-related expenses. It compensates the insured for the related financial damage. It is important to note that health insurance is a form of short-term insurance. Disability, critical illness, and long-term care insurance are all subclasses of health insurance. When an individual purchases health insurance, he or she enters into a contract (policy) with the insurance company so that, in exchange for a monthly premium, the insurance company will provide coverage for medical expenses incurred. The level of coverage and eligible healthcare providers will vary between different products. Coverage will include doctor or hospital visits, prescriptions, the cost of medical tests or vaccinations, as well as other medical expenses. Payment by the insurance company can be made directly to the policyholder or the relevant health care provider. To limit moral hazard, most insurance companies will include features such as deductibles, copays, coinsurance, and other out-of-pocket payments in their contracts. The deductible is the fixed amount that the insured must pay out of pocket each year before the health insurance company begins paying for medical services. It is calculated annually and expressed as an annual amount. Once the deductible is reached, the following out-of-pocket expenses are incurred: co-payment and/or coinsurance. A copay is a specific amount that the insured must pay to the healthcare provider at each visit. Coinsurance is a percentage of the total medical bill that the insured person must pay for a health care service. To protect the insured from extreme out-of-pocket expenses, some policies include a... .half of the card ......t quickly gain a competitive advantage. Furthermore, such companies cannot employ full-time actuaries. For example, some companies may use the assistance of an actuary only on a consultancy basis for certain large-scale projects. Alternatively, an actuary might be hired to fill a "multi-faceted" role in a business that may include a combination of roles such as marketing, customer management or financial duties in addition to traditional analytical work. The best area for non-traditional job opportunities is with smaller organizations such as small/new biotech companies and health IT companies. These companies are looking for agile professionals with little or no training. Additionally, actuaries with strong analytical skills and extensive experience in the healthcare industry are also commonly sought after as healthcare executives. (Society of Actuaries, 2010)
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