Public vs. Private Healthcare

Breaking Down the Differences Between United States Public and Private Healthcare Insurance Plans

 

There are many types of medical insurance, which is why it’s important to find the type that best fits your needs. To break it down into its simplest form, there are two types of health insurance coverage: Public and Private. 

 

Public healthcare

These are plans that are provided to people by the government. It is usually provided to those who are low income, elderly, or people who qualify for special subsidies. Within public healthcare, there is Medicare, which is for people who are 65 years or older. This plan is also offered to certain differently abled people. Another public plan is Medicaid, which will cover low income families. People qualify for medicaid based on their income. If their income is a certain percentage under the federal poverty level, they will qualify for enrollment into medicare. The third type of public healthcare is the Children’s Health Insurance Program (CHIP). This plan is for those who don’t qualify for medical assistance but also can’t afford private coverage. 

 

In comparison to private healthcare, public healthcare is more affordable-- since it has no co-pays and deductibles, and will offer lower administrative costs. Even though its more affordable, public healthcare is less flexible because the policyholders are given a smaller, more limited network of services that are covered. 

 

Private healthcare

These plans are those that are provided by private companies and usually provided by the organization that the policyholder is affiliated with. One type of private healthcare is employer-sponsored. This is provided to employees as a benefit of their employment with a company. These plans are often much more generous than the public healthcare plans. Private plans will often provide a more comprehensive network of providers, which you can search using Nayya. Although, if you receive an employer-sponsored healthcare plan, you may be paid less because the company will take money from your wages to cover the premium the employers must pay. This can end up costing an employer a lot of money. But with Nayya, employers can increase healthcare transparency and save up to $1,000 per person per year! Another type of private healthcare is Individual health insurance. These are purchased for yourself and/or your family but without an association with an employer or organization. Depending on the type of plan and benefits you choose, the cost will vary greatly, but usually ends up being less than group insurance plans. You can use SmartSelect to determine the plan that makes the most sense for you. 

 

Private healthcare policies are more flexible than group policies because of the vast network of providers they offer. But, private plans will cost more than public plans. Partly because of the monthly and yearly premium that is required. Nayya uses data science and artificial intelligence to match you with the right plan. Visit our site to learn how you can protect your health while promoting your wealth.