Describe the advantages and disadvantages of having private health insurance for the individual. (5 marks)
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Advantages:
- Private health insurance provides individuals with choice of specialist doctors and faster access to elective procedures.
- Patients can select preferred hospitals and receive private accommodation during treatment if available.
- Coverage can include ancillary services like physiotherapy, dental care and optical services not fully covered by Medicare.
- Individuals avoid long public hospital waiting lists for non-urgent surgeries, enabling quicker treatment and recovery.
- Insurance holders can schedule procedures at convenient times and maintain continuity of care with chosen healthcare providers.
Disadvantages:
- High annual premiums create financial burden, particularly for low-income families.
- Many policies include significant excess payments and gap fees that increase out-of-pocket costs.
- Coverage limitations through exclusions and waiting periods restrict immediate access to certain treatments.
- Complex policy structures make it difficult for individuals to understand their actual entitlements.
- Some procedures may still require substantial personal payments despite insurance coverage.
- Annual premium increases often exceed inflation rates, making insurance less affordable over time.
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Advantages:
- Private health insurance provides individuals with choice of specialist doctors and faster access to elective procedures.
- Patients can select preferred hospitals and receive private accommodation during treatment if available.
- Coverage can include ancillary services like physiotherapy, dental care and optical services not fully covered by Medicare.
- Individuals avoid long public hospital waiting lists for non-urgent surgeries, enabling quicker treatment and recovery.
- Insurance holders can schedule procedures at convenient times and maintain continuity of care with chosen healthcare providers.
Disadvantages:
- High annual premiums create financial burden, particularly for low-income families.
- Many policies include significant excess payments and gap fees that increase out-of-pocket costs.
- Coverage limitations through exclusions and waiting periods restrict immediate access to certain treatments.
- Complex policy structures make it difficult for individuals to understand their actual entitlements.
- Some procedures may still require substantial personal payments despite insurance coverage.
- Annual premium increases often exceed inflation rates, making insurance less affordable over time.