Private health insurance 101
Your private health insurance does not oblige you to demonstrate financial
hardship in order to qualify for its plan, the way public health insurance
does. Private health insurance is usually written for employees, where
pooling risks are much easier for insurance companies. This is easier for
insurance companies, because they’re able to draw on a better
demographically defined population, which enables the health insurances to
be more closely tied to statistics that fit the pool of people. Private
health insurance is sometimes referred to employer sponsored insurance.
Recent healthcare reforms in the United States taxes so called Cadillac
health insurance plans that are private.