Over the past few years, the nature of the health insurance has evolved drastically. Another peculiar shift has been flexibility through the shift towards customizable plans of insurance. These policies deviate from the conventional standard policies where everyone is covered in a similar manner, the policies are unique with different options for all the persons within the policy, depending on their personal preferences and state of health. Different health insurance is meant to offer better health and medical plans with reasonable freedom in plan selection to improve clients’ health and finance.
The Changing Dynamics of Shopping Behavior
The Changing Dynamics of Shopping Behavior as Drivers of the Shift Toward Personalization
There are extensive categories of standard health insurance policies which keep a fixed rate of premiums, deductibles and shared options of coverage for a large base of customers. But it may not fit everyone, as everyone is different and people have different health requirements or financial ability. Traditional health insurance policies do not fill this need because they provide general coverage and do not take into account a person’s characteristics, medical history, behavior and future health requirements.
Employing specialist technologies including artificial intelligence (AI), data analysis, and screening health risk, insurers are able to devise individualised polices. These new technologies assist insurers to properly identify the risks and requirements of every person solely receiving the services that are needed.
Advantages of Customized System of Health Care Insurance
The first benefit of the personalized health insurance is the flexibility of coverage which addresses the need of the person insured. Here are some of the key benefits:
Better Health Outcomes:
Custom plans may bring an opportunity to receive necessary coverage as per the existing state of health. For example if a person has a condition that requires special treatments, drugs or periodic checkups. Which may be uncommon, the policy can allow for them. This is important in order to have people well taken care just at the right time. And thus health outcomes of individuals can be enhanced.
Cost Efficiency:
While people end up paying for services that need not be claimed most of the time. They experienced insurance assists in lowering the amount of cash. One has to pay out-of-pocket type by taking care of numerous indispensable treatments and services. This let the consumers to make their own choice in choosing what type of coverages they want. And what they do not want.
Improved Preventative Care:
To be more specific, personalized policies can thus promote preventive measures. As the policies embrace cost-coverage to wellness programs. The screenings, as well as early interventions. When arms of these options can keep risks away. That may lead to more severe state of health in future. Because such options are useful in preventing future health complications.
Flexibility:
Personalized health insurance plans are much flexible. As they allow the fringe benefit plan to be tailored to an individual employee. This enable people to shift in and out of the relevant plans because of changes in lifestyle. The improvement in health or emergence of new diseases. For instance, where the client has changed from a less active lifestyle to a more active one. He or she can change policy to require lower costs because the health risks are now lower.
Access to Specialized Networks:
There are some personalized policies that grant an option to seek a particular health care provider. Or a center that is more appropriate for the medical conditions of a person. It can be specifically useful for those suffering from a disease that affects a small number of people. Or those who have chronic illnesses or choose a particular type of therapy.
Challenges of Personalized Health Insurance
Despite the benefits that prepaid personalized health insurance has its own problems that policyholders and the insurers themselves experience. This means that, one of the biggest challenges involves getting around the issue of policy individualization. Collecting and analyzing big amounts of health information is a complicated process that demands using special technologies and qualified personnel. Further, there are problems of privacy and security of rapidly shared health information. As many applications require individuals’ specific characteristics to use the service.
Moreover, high-impact and flexible policies are often costlier than conventional approaches of health insurance. Where the delivery of services is concerned. Demand is also an issue where people may have problems comprehending all the strings attached to their policies, If they do not clearly follow the related terminologies in healthcare and insurance.
In article “Personalizing the Health Risk Assessment: Implications for the Future of Personalized Health Insurance the authors revealed a possible promotion of FTHRA along with health specific approaches.
Because of improved technological development and shifting concentrations of healthcare service delivery towards a patient-centered model, tailor-made insurance policies are set to become more common. Subsequently it may be expected that artificial intelligence, machine learning and big data will go on to more enhance the precision of these plans and its execution. Insurers are also likely to expand accepted health paradigms, which would include not only preexisting diseases but also life style, mood disorders and other socio-demographic factors as well.
Conclusion
In conclusion, the concept of developing highly localized and unique policies is the best policy reforms in regards to customer-oriented and focused health insurance. There are still difficulties and drawbacks, which are presented below, but since more personalized health insurance has the potential of delivering better treatment, saving money and organization’s time, as well as flexibility, it can be seen as an interesting option for health customers. Looking to the future, customer-specific insurance is to become one of the key areas influenced by active changes in technology and data analysis.