It is a type of health insurance plan where the insurance company assumes all the financial risk associated with providing healthcare coverage to the insured individuals or group. In this arrangement, the insurance company collects premiums from the policyholders and pays for all covered medical expenses, including doctor visits, hospital stays, prescription drugs, and other healthcare services. Under a fully insured plan, the insurance company sets the premium rates based on the insured individual or group's age, location, and health status. The insurer also determines the scope of coverage and any limitations or exclusions within the policy. In exchange for the premiums paid by policyholders, the insurance company guarantees to cover all eligible medical expenses up to the limits specified in the policy. If an insured individual requires medical treatment or services covered by their policy, they can seek care from healthcare providers within the insurer's network and have their expenses reimbursed by the insurance company. The insurer also negotiates discounted rates with healthcare providers, which helps to control costs and ensure that policyholders receive quality care at affordable prices.
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Employee Life Insurance and why every employer needs to offer it
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