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INSURANCE

Importance of health insurance in today’s uncertain times


KARACHI:

Our health is undoubtedly our greatest asset! However, at times access to the things that contribute to a better quality of life can be challenging for most of us. Moreover, access to even basic healthcare is an issue for particular segments of society.

Pakistan is a developing nation economically but its population is growing at an average annual rate of 1.9% which is almost double the average global population growth rate.

On top of that, over 7% of the population is over the age of 60, which gives rise to an increasing need for medical care for age-related health issues. Also, given that the average woman in the country gives birth to nearly 3.6 children, there is also a significant demand for healthcare services related to pregnancy and childbirth.

Pakistan’s diverse demographic profile offers immense potential for insurance products due to the significant size of its Gen Z segment, comprising 60-65% of its populace, where the majority of individuals are under the age of 30.

This younger lot focuses on maintaining a healthy and secure lifestyle. As such, this segment requires wider access to modern infrastructure like fitness centres to sustain this lifestyle till they get to 60.

Similarly, they need awareness for accepting life insurance products as integral parts of their lives so that when the time comes, they have a support system that eases their worries.

Since a significant chunk of Pakistan’s population is young, therefore it is essential to understand how health insurance works and why it has become a crucial aspect from the early stages of life.

Insurance generally works on the principle of risk sharing, where individuals pay premiums to a service provider in return for providing them financial coverage in case of medical emergencies including hospitalisation, surgical, and outpatient coverage, alleviating the burden

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INSURANCE

Health insurance premiums through marketplace poised to jump in 2023

The Good Brigade | Digitalvision | Getty Images

If you get your health insurance through the government Health Insurance Marketplace, you may want to brace for higher premiums next year.

Unless Congress takes action, enhanced premium subsidies — technically, tax credits — that have been in place for 2021 and 2022 will disappear after this year. The change would affect 13 million of the 14.5 million people who get their health insurance through the federal exchange or their state’s marketplace.

“The default is that the expanded subsidies will expire at the end of this year,” said Cynthia Cox, a vice president at the Kaiser Family Foundation and director of its Affordable Care Act program. “On average, premiums would go up more than 50%, but for some it will be more.”

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Most enrollees — which includes the self-employed and workers with no job-based health insurance — receive subsidies, which reduce what they pay in premiums. Some people also may qualify for help with cost-sharing such as deductibles and copays on certain plans, depending on their income.

Before the temporary changes to the calculation for subsidy eligibility, the aid was generally only available to households with income from 100% to 400% of the poverty level.

The American Rescue Plan Act, which was signed into law in March 2021, removed — for two years — that income cap, and the amount that anyone pays for premiums during the reprieve is limited to 8.5% of their income as calculated by the exchange.

Assuming Congress does not extend the expanded tax credits, only people with household income from

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