Public vs. private insurance has been a topic of debate in the recent years all over the world. A public insurance offers a universal insurance policy, which delivers an accessible and affordable healthcare to the citizens . The government pays for the insurance entirely. On the other hand, private insurance is available for the individuals through an employer or private organizations and allows choosing a customizable plan. Private insurance reimburses the cost of the health care services or pay directly to the participating providers. Also, it offers the individuals to choose their preferred doctor or surgeon, while public insurance does not allow choosing the doctor and assigns the one who is on duty at the time of operation . Moreover, private insurance reduces the length of waiting time in the hospitals as it offers priority services, which is not the case of public insurance.
Public health insurance targets the poor and vulnerable populations of the country. It emphasizes on preventive and public health services. On the other hand, private insurance covers services concentrated in population centers. Public insurance offers less innovation and flexibility when compared to the private insurance. Furthermore, private insurance provides more attention and accountability for customer convenience, comfort and satisfaction, which is not the case in public insurance . Private insurance responds quickly to the changing market conditions and has access to capital markets. On the other hand, public insurance responds slowly to market conditions and has limited access to capital markets. Private insurance focuses on narrow needs of the customers while public insurance addresses various needs of the customers. The competition of public health insurance is monopoly due to the regulation and subsidization of selected services, while private insurance is vulnerable to competition from both public and private insurance providers .
In the Unites States, the pubic insurance is a federal program that covers hospital, physician and drug benefits. Private insurance is available for employers, self-employed and retired individuals. In Australia, the private health insurance covers 75 percent of the general treatment costs, hospital costs as well as ambulance costs . In the case of public insurance, Australian health care offers little or no control on the waiting time at the hospital as well as choosing the doctor. In the case of India, the private health insurance provides the best care, but faces hurdles due to rigid rules and exclusions, poor service standards and settlement records . Indian public health insurance claims 60 percent of the market share; however, it fails to fill the gap between healthcare and financing in the rural areas. In Canada, the citizens pay for the health insurance through taxes and the insurance covers various benefits. Private insurance is available for the services, which are not available under certain provinces.
Private insurance is more efficient that public insurance the insurance providers spend resources on administrative costs, which the governments do not. Also, the private insurance companies ensure the efficiency of the insurers by offering administrative activities. They offer access to a wide network of private and public hospitals. Private insurance also offers additional benefits or ancillary, such as dental, physiotherapy, optometry speech therapy, podiatry, chiropractic treatment, occupational therapy and many others, which are unavailable in the public insurance plans . The customized plans provide a peace of mind to the individuals as they are sure about what the insurance plan covers.
References
Hacker, Jacob S. The Divided Welfare State: The Battle Over Public and Private Social Benefits in the United States. Cambridge University Press, 2002.
Quaye, Randolph. Balancing Public and Private Health Care Systems. University Press of America, 2010.
