To be an insurer, an organization must obtain a license from the regulating authorities to be a valid player. The license must also enable them to market their product.
Technically, they aim to make money in two ways:
· By collecting premium.
· By investing the collected premium in money or stock market, directly or indirectly.
However, the indemnity process differs from one insurer to another. Though both the processes end with same effect, the approach differs.
Let’s have a look at the two main approaches:
· The reimbursing approach: Health insurance carriers offer options that require you to make the payments up front and later reimburse the amount excluding the co-payment amount. This may not be suitable for people, who are short on cash.
· Pay on your behalf approach: Once the insured experiences a specified peril, he/she can approach a third party for assistance and under this contract, the insurance company makes payments directly to the third party with any out of pocket cost on the insured.
Remember, it is vital to check the contract for the indemnity clause and watch out for the exclusionary clause that specifies the medical conditions that are excluded. Also, enquire about the extent of customer satisfaction through various consumer protection forums, Better Business Bureau or similar local bodies. It is not uncommon to see a few unattended complaints but identify the reasons of the complaints to have a clearer picture.
There are many carriers with an excellent credit rating by agencies such as Moody’s. Some of these are:
For reliable health insurance carriers, your search can begin with these aforementioned names.