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Why premium for private hospital insurance goes up
19 Nov 2020 (111 views)

My friend told me that he heard of a case where a patient was treated in a private hospital and the bill was over $1 million. About 80% are covered by insurance. The patient died.

Guess who pays for the 80% of the bill? It is not the insurance company. It is the policyholders who bought private hospital insurance. 

This is the reason for the premium rate to go up very high.

The insurance company is not able to control the large bills charged by the private hospitals. They increase the premium rate for the insurance. 

If you do not want to pay the large premium rates, it is better to buy insurance for public hospitals, and not for private hospitals.


Why premium for private hospital insurance goes up
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My friend told me that he heard of a case where a patient was treated in a private hospital and the bill was over $1 million. About 80% are covered by insurance. The patient died.

Guess who pays for the 80% of the bill? It is not the insurance company. It is the policyholders who bought private hospital insurance. 

This is the reason for the premium rate to go up very high.

The insurance company is not able to control the large bills charged by the private hospitals. They increase the premium rate for the insurance. 

If you do not want to pay the large premium rates, it is better to buy insurance for public hospitals, and not for private hospitals.