What is private healthcare? Put simply, private healthcare is the provision of health and medical services by an entity other than a government organization. Aside from the provision of healthcare at a private hospital or clinic, the subject of ‘private healthcare’ also encompasses private health insurance. Private health insurance involves the payment of a company (an insurer) to pay for a patient’s medical costs when the need arises.
The provision of private healthcare by a non-government hospital or clinic is often a more comfortable experience for the patient than processing through the ‘public system’. The private healthcare system frequently offers shorter waiting times to access many medical services, including elective surgery and sometimes even essential surgery.
Private health insurance is considered a luxury for many working families worldwide, while for some, it is a necessity. However, private health insurance does not always pay for 100% of the cost of medical services. In some countries, such as the United States, no private health insurer offers a plan that is willing to pay 100% of the cost of all medical services, according to America’s Health Insurance Plans (AHIP), the national private health insurers’ peak body. A copayment is often required to cover the difference between what the private health insurer covers and what the cost of the health care is, and a deductible (amount paid ‘out-of-pocket’ each year before private health insurance benefits ‘kick in’) is almost always applicable.
Private health insurance is not always paid for by the consumer. Many employers offer health plans, removing the need for their employees to pay for private health insurance. For veterans and low-income families, health costs may be fully or partially covered by the government in the form of subsidies from the Medicare or Medicaid programs, although this would not be appropriately termed ‘private’ health insurance. However, waiting times for government-subsidized healthcare can be long.
Private health insurance may or may not cover prescription drugs as part of their coverage. In many circumstances, prescription drugs may also be subject to copayments, the amount dependent on how much the drug manufacturer charges for their product.
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