Group Should Not Be Established For Obtaining Insurance

1751 WordsMar 16, 20178 Pages
1. Groups should not be formed to obtain insurance. According to this principle, the group should not be established for obtaining insurance. The purpose of this principle is to reduce adverse selection to insurers. If the group is established for obtaining insurance, it is mainly in an unhealthy manner to join the group to obtain insurance at a low cost. Human mobility. According to this principle, the elderly should be replaced by young employees, no young people into the average age of the group. If the Group continues to increase, this will lead to an increase in premiums, which in turn will urge healthier, younger members to leave the group. The cost of insurance will be higher for remaining members. Benefit determination The amount…show more content…
The Blue Cross plans to provide the insured with a service benefit rather than a cash benefit, that is, the bill is paid directly to the hospital rather than to the insured. Blue Shield plan: Costs and expenses for doctors and Surgeons. Most plans include Blue Cross and Blue Shield coverage, and provide basic medical expenses and medical insurance. It also sponsors managed medical programs like HMO and PPO. b. Self-insurance means protect yourself or your interests by maintaining the fund to cover possible losses rather than buying insurance policies. • self-insurance plan is not the national provisions of the 1974 Employee Retirement Protection Act (ERISA). Therefore, employers do not need to comply with the law in 51 jurisdictions. • all or part of the fund is retained by the employer, so he can earn interest until payment is made. • since the insurance plan is exempt from state laws, they should not provide state. • because of the national premium, the insurance company 's profit and commission savings, the increase or decrease in the cost of slow. 4. a. A medical insurance institution that pays a predetermined fee in exchange for a range of medical and medical services from the organization. b. A health plan signed with healthcare providers, such as hospitals and doctors, to establish a network of participating providers. If you use the provider of the planned network, you will pay less. c. It is a type of managed health care
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