Health Insurance

Monday, November 19, 2012

Health insurance policies are aimed at covering the risks associated by medical issues affecting individuals. This is an agreement between the insurance company and the policyholders. It can also be an agreement between the insurance company and a sponsoring company covering the health issues of an employee. In other cases, it is an agreement between the government and its citizens.

It is good to note that health insurance policies can be lifelong or renewable. The amounts to be paid for premiums may range from one plan to another or may be constant as stipulated by the employer or the sponsoring provider.

In Canada, health care is a constitutional right, as laid out in the provisions of the Canada Health Act of 1984. The provincial governments are tasked with the health care responsibility to their people. This is without mentioning those groups of people who are covered by the national government such as the police forces, military, parliament, and aborigines.

Health insurance is commonly known as Medicare in Canada. Each province usually has its own Medicare plans but must conform to the statutes laid down by the national government. It is stipulated that necessary medical services defined by the rules and regulations of the national government must be free and accessible to all. The national government regulates the Medicare services in its exercise of the distribution of finances to the provinces. Health insurance is therefore a public insurance plan that is constitutionally tax-funded and given to the citizens by the Canadian federal government.

Private health insurance policies are also allowed in some provinces in the country. These usually cover those factors that are not included in the public health program. There are also other health insurance plans given by the employers to their employees.