Question

What is the difference between insurance and coverage ?

In regards to healthcare. Some healthcare systems are considered insurance while others are only coverage. What exactly is the difference?

Answer 1

a) INSURANCE is a practice or arrangement by which company or government agency provides a guarantee of compensation for specified loss, damage, illness or death in return for a payment of a premium. In some sense, it's a thing providing protection against a possible eventuality.

Insurance coverage refers to the amount of risk or liability that is covered for an individual or entity by way of insurance services.

b)“Health insurance, like other forms of insurance, is a form of collectivism by means of which people collectively pool their risk, in this case the risk of incurring medical expenses.”

The type and amount of health care costs that will be covered by the health insurance company are specified in advance, in the member contract or "Evidence of Coverage" booklet thats why some healthcare systems consider Health insurance while others are only Health coverage.