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Health Insurance

I need help getting started on this assignment.

From workers' compensation to professional and general liability, health care administrators must consider many factors in providing adequate insurance coverage for the institution. As your third assignment toward completion of the Session Long Project:

Explain the basic concept of insurance.

Identify and discuss the key factors to be considered in choosing an insurance company and policies for a healthcare organization.

Explain how workers' compensation insurance differs from liability insurance.

Distinguishes between "claims-made" and "occurrence" liability policies.

Thank you for this assistance!

Solution Preview

Hi,

Another interesting topic! Let's take a closer at each question from various sources, which you can draw on for your final copy. I also attached one supporting article.

RESPONSE:

From workers' compensation to professional and general liability, health care administrators must consider many factors in providing adequate insurance coverage for the institution. As your third assignment toward completion of the Session Long Project:

1. Explain the basic concept of insurance.

One way to define the basic concept of insurance is this: "a promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Law requires some forms of insurance, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policyholder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance" (http://www.investorwords.com/2510/Insurance.html).

On the other hand, health insurance is "insurance against loss by illness or bodily injury. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays and other medical expenses. Policies differ in what they cover, the size of the deductible and/or co-payment, limits of coverage and the options for treatment available to the policyholder" (http://www.investorwords.com/2289/health_insurance.html).

From the organizational perspective, however, insurance protects the health organization from internal (e..g, worker's compensation, etc.) and external threats or risks (e.g. liability insurance, often identified in the risk management process.

2. Identify and discuss the key factors to be considered in choosing an insurance company and policies for a healthcare organization.

One of the most important decisions any business owner or manager makes in regards their company's commercial insurance program is their choice of which insurance agent/broker to purchase insurance through. http://www.cutcomp.com/choosing.htm

The health care organizations need to consider many internal and external factors in choosing workers' compensation and professional and general liability, with the main goals to provide adequate insurance coverage for the institution. For example, in choosing a workmen's compensation carrier, there are several factors for considerations. Workers' compensation is a large expense for small businesses. Compensation for injured employees includes medical bills, payments for lost time and damages for any permanent injuries. Every state requires that employers provide compensation for any and all work-related injuries. Different industry is more dangerous (more injuries) than others, which is a factor to consider. A lower accident rate means fewer workers' comp claims and lower costs. It starts with these key actions:

1. Uphold all workplace safety standards
2. Thoroughly train employees on safety issues
3. Be diligent about your policy coverage ...

Solution Summary

Relating to health care administrators considerations of factors in providing adequate insurance coverage for the institution, this solution explains the basic concept of insurance; identifies and discusses the key factors to be considered in choosing an insurance company and policies for a healthcare organization; explains how workers' compensation insurance differs from liability insurance and also distinguishes between "claims-made" and "occurrence" liability policies. Supplemented with an article on choosing an insurance broker.

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