Private Health Care: Benefits, Coverage & Choosing the Right Plan

Private health care was introduced during the 20th century to help offset the rising cost of health care. A private health care company is a for-profit business venture that provides health insurance coverage for eligible persons. Many employers offer private health care incentives as a benefit for employees.

Choice

• Private health care gives patients options for coverage and a choice of physicians. Patients can choose their preferred hospital or clinic with private health care.

Quality

• Private health care breeds competition among rival insurance companies, hospitals and physicians. A patient's freedom to choose a rival provider produces an incentive to provide high-quality service.

No Waiting Periods

• Private health care allows patients to be seen promptly. In countries with public health care, such as the U.K., there are extended waiting periods to receive care.

Job Creation

• In 2006, the private health industry was one of the largest in the United States. Between insurance companies, hospitals and residential care facilities, the private health care industry employs thousands of people.

Reduced Government Spending

• Privatized health care reduces the government's share of the health care burden. Private health care premiums are paid by employers and beneficiaries.