Healthcare Insurance Issues - Essay Example

To avoid paying these damages, the medical professional can buy an insurance policy, for purposes of transferring the risks associated with his or her work (Mason, Leavitt, and Chaffee, 2012). On most occasions, insurance companies will accept the risk under consideration, in exchange for receiving the payment of premiums.

An employee would also need to join an individual professional insurance program, even if they are covered by their employer. An employer would register to this program if the insurance policy initiated by an employer does not meet the following requirements (Nurses Service Organization, 2014):
- Enlisting the name of the employee in the insurance program.
- Inclusion of legal costs in the policy.
- Payment of legal and court costs in cases whereby a lawsuit is filed against a medical practitioner. The insurance policy should be responsible for paying these costs.
- The availability of the insurance policy in all the states that comprise America.

An insurance policy maintained by an employer that does not meet the above requirements would force an employee to purchase their policy (Nurses Service Organization, 2014).

Some of these insurance programs only cover some partial problems, it would therefore be necessary for the health care practitioner to register for an insurance program that covers all possible liabilities that they are liable for (Nurses Service Organization, 2014). An employer’s policy also covers an employee only when he or she is working for him, or at work. On the other hand, enrolling in a professional liability insurance program will cover an employee when he or she is at work, or providing volunteer services to another health organization (Nurses Service Organization, 2014).

The insurance policy initiated by the employer is aimed at protecting the interests of the employer first, before protecting the interests of his employees (Nurses Service Organization, 2014). This is because he is the one responsible for paying premiums, and on most occasions, they partially insure their employees. This is an indication that the policy aimed at protecting the interests of the employer first, before protecting the interests of employees.

Enrolling in a professional liability program does not mean that an individual has a deep pocket. It is only a measure of safeguarding a health practitioner from liability in cases of negligence or malfeasance (Nurses Service Organization, 2014).

In conclusion, it is advantageous for medical practitioners to enroll in a professional liability insurance program because it will help them in meeting legal liabilities and costs associated with negligence. This is in case a claimant accuses them of causing harm to them, because of their negligence (Cowen and Moorhead, 2011). This in turn makes a medical practitioner have peace of mind, and rest. Furthermore, the medical practitioner has the capability of influencing factors that determine the kind of premium that he or she pays. One of the ways used in controlling premiums is reducing risks that may occur in the workplace (Nurses Service Organization, 2014). This is through having a good background on the duties they undertake, and also enrolling in programs aimed at teaching medical practitioners how to safely carry out their activities.

One major disadvantage of this policy is that it does not contain any standard policy concerning the wording of the insurance policy. Analyzing the individual policy is important, mainly because it ensures that it fits the specific situation or needs of the policyholder (Mason, Leavitt, and Chaffee, 2012). For instance, some of these insurance policies may not provide a cover for punitive damages. This could have an impact on costing the policyholder a significant amount of expenses. Some providers also cover a specific type of negligence, and hence it would force the policy seeker, to look for an insurance company that provides cover to all their needs