Private vs. Public Health Insurance: Which Is Right for You?

One of the most essential aspects of financial planning and self-care is to avail yourself of health insurance. However, for first-timers, finding the right health insurance can be overwhelming. This is why it’s recommended to work with an insurance broker. Since basically, health insurance is an investment, you should know every detail about getting one for yourself and for your family.

However, since health insurance is an investment, it can also be pricey, which is why you should have as many options as possible. Two of the main options when thinking about getting health insurance are private or public insurance.

In this article, we’ll dive into the differences between these two types of health insurance so that you can make informed decisions.

Public Health Insurance

Public health insurance is funded by the government, which aims to provide healthcare to everyone, especially families and individuals with low income, veterans, and senior citizens. The coverage of public health insurance varies from one place to another. So, if you want to know the specifics of the public health insurance in your area, it’s best to look it up yourself.

Pros:

Affordable. Since it’s a government-funded insurance, those who are qualified can avail of health insurance with lower or no premiums.

Coverage. Usually, public health insurance covers basic coverage, hospitalisation, and preventive care. However, if you want to increase the coverage, some areas offer out-of-pocket costs for the additional coverage requested by the policyholder.

Universal access. As long as you’re a citizen of a specific country, you can get the public health insurance they offer.

Cons:

Time-consuming. Since everyone can get basic public health insurance, the service tends to require long waiting times, especially for non-emergency procedures.

Limited coverage. As mentioned, most public health insurance only offers basic coverage, and policyholders need to pay premiums if they want to increase the coverage.

Quality of services. In some areas, people complain about the quality of services they get when they’re using public health insurance, so you should also check the reviews beforehand.

Private Health Insurance

Private health insurance is offered by various commercial companies that aspiring policyholders can easily avail. However, even if you’re paying for this type of health insurance, you should still undergo the assessment.

At the same time, hiring an insurance broker is recommended when availing of this type of insurance, since you have a lot of choices in terms of the insurance provider, coverage, terms, and premiums.

Pros:

Flexible. When you avail yourself of private health insurance, you can easily choose your preferred specialist, hospital, and doctor.

Short to no waiting time. Once you have an appointment, you can go straight to the procedure or diagnostics without the need to wait for hours.

Amenities. Since you paid for your preferred coverage, you can have access to specific amenities included in your chosen coverage.

Cons:

Higher cost. Since it’s run by commercial companies and has the liberty to choose based on your preferences, the premiums can also be high.

More complex. Since there are a lot of options in terms of coverage and providers, the terms can be complicated and require the presence of an insurance broker.

Stereotypes. Even if you paid for the insurance premiums, some clients pay higher premiums, which can sometimes become an issue of inequality.

Key Factors to Consider

Are you still hesitant as to whether you should choose public or private health insurance? Here are some of the things you can ask yourself before deciding:

1. Define Your Budget

If your financial status can only afford basic health insurance coverage, it’s best to avail of public health insurance, especially if you don’t have illnesses that require special medical attention. On the other hand, if you’re looking for comprehensive health insurance coverage, and you can afford it, you should avail yourself of private health insurance.

2. Frequency of Using the Health Insurance

As mentioned, if you have illnesses that require specific medical attention, it is recommended to avail yourself of private health insurance. Besides, since public health insurance only offers basic coverage, complicated medical attention may not be covered at all.

3. Consulting with Specific Providers

Aside from the special procedures required for special illnesses, private health insurance providers usually have a wide network of specialists. If you want to schedule an appointment with a specific specialist or doctor, you can easily have your insurance provider do it for you.

4. Health Insurance Coverage

If you decide to go with the basic coverage but are still hesitant due to the other factors, compare the coverage of mental health services, dental, vision, and other modern and advanced procedures. If the basic coverage of public health insurance is better than the basic insurance from a private insurance provider, it can be easier to choose.

Final Thoughts

The right health insurance comes with various factors. And since there’s no such thing as a one-size-fits-all when it comes to insurance, you should decide based on your personal needs and preferences.

Have you decided yet? Let us know which you prefer by commenting below!