With continuous changes in the medical industry, the need for medical care access keeps growing in our country. Both public and private cashless health insurance policies aim to provide medical care necessary for individuals without causing them to face financial crises.
The following article will help you understand what is the difference between private and public health insurance so that you can be informed when making a choice.
Difference Between Private Health Care and Public Health Care
Whether you opt for private health insurance or resort to a public healthcare scheme depends on your medical requirements, financial status and accessibility to either of these healthcare policies. This public vs private health insurance comparison has outlined how public healthcare and private healthcare are different from one another.
Parameter | Public Healthcare Scheme | Private Health Insurance |
Meaning | The government provides this scheme to the citizens, in which required healthcare services are provided at subsidised or no cost so that medical care is made affordable and accessible to all. | This insurance policy is bought by individuals from private insurance companies, and tailored coverage is provided based on personal healthcare requirements and preferences. |
Expense | It is either free of cost, or easily affordable so that a broad section of society can access it. | It is usually more costly when compared to public healthcare schemes, but it comes with customisation options that give you the flexibility to select a plan based on your needs. |
Coverage Options | Focuses mainly on curative and preventive care through basic healthcare services so that the well-being and health of the public are well-maintained. | Provides basic and advanced healthcare coverage, including specialised healthcare services based on the policyholder’s requirements. |
Eligibility | Eligibility is based generally on factors like age, income, demographics and employment status. | No particular eligibility criteria for this insurance policy, if the insured can make payment for the premiums on time. |
Claim Settlement Process | The claim process can be more bureaucratic and slower compared to private health insurance claims. | The claim process is simpler and faster compared to the public healthcare scheme’s claim process. |
Advantages of Private Healthcare
To understand the difference between public and private healthcare, you should know the advantages and disadvantages of each of these healthcare schemes. Let us begin with the advantages of private healthcare:
- Highly Preferred – Private health insurance service providers offer outstanding medical facilities and services, making them comparatively more popular than public health schemes.
- Coverage Advantage – One prominent private health insurance benefit is that most reputed insurers like TATA AIG offer wide coverage, which includes both curative and basic health care.
- Customisation – You can customise your medical insurance plan according to your medical needs by adding riders or including specific coverages.
Private Health Insurance – Cons
- Costly Affair – Compared to public healthcare schemes, private health insurance plans are significantly more expensive.
- Limitations on Specific Diseases – Limitations are imposed on lifestyle-related and pre-existing diseases, making it difficult to find treatment for specific or chronic health issues.
Public Health Insurance – Pros
- Easily Accessible – The main purpose of public medical insurance is to ensure that the citizens are healthy and safe. It is made accessible to all citizens, especially the vulnerable section of society.
- Cost-effective – As mentioned above, it is either free of cost or costs very little so that all sections of society can get access to medical care.
- Focused on Preventive Care – Government-based policies are focused on preventive treatments and regular check-ups to prevent long-term health issues.
Public Health Insurance – Cons
- Involvement of Government – Based on policy changes or government decisions that result in budget constraints or government priority shifts could impact the benefits that policyholders enjoy.
- Not Enough Coverage – The coverage you receive when it comes to government health schemes can be limited if you suffer from a chronic condition that requires regular treatments.
Conclusion
Finally, it is clear that private and public healthcare policies have their own pros and cons. When it comes to private vs public healthcare, you need to identify your specific medical requirements before opting for either of these health insurance policies.