Private health insurance in Portugal provides numerous benefits, helping to reduce the costs of medical and hospital treatments. One essential concept within health insurance that expats should understand is that of negotiated rates. But what are these rates, and how can they be useful for policyholders?
Negotiated rates are the prices previously agreed upon between the insurance company and its network of healthcare providers, including doctors, clinics, and hospitals. These rates are often 20-30% lower than the standard prices charged directly by providers. This means that policyholders can access healthcare at reduced prices by using these providers.
How do negotiated rates work?
These rates are particularly beneficial for expats who recently started a health insurance policy and may need a medical service that is excluded from coverage due to the waiting period. For example, if a woman takes out health insurance while already pregnant, she may not be covered for childbirth due to a standard waiting period of 365 days. However, she can still take advantage of the negotiated rates at private hospitals or clinics within her insurer’s network, allowing her to access discounted rates even without full coverage.
Let’s consider the case of Joana. Joana is pregnant and has recently taken out a health insurance policy, but childbirth is not covered due to the waiting period of 365 days. Without coverage, Joana would have to pay the full cost of childbirth herself. If she were to arrange it directly with a private hospital, the childbirth would cost her 6,000 euros. However, by using the negotiated rate offered through her insurer, Joana could pay just 4,500 euros – a savings of 1,500 euros.
This price difference is possible because the insurer has agreements that secure lower rates for policyholders within its network. Although she cannot use her policy’s full coverage for childbirth due to the waiting period, Joana can still reduce her medical expenses significantly by choosing a hospital within her insurer’s network.
Don’t Confuse Negotiated Rates with Copayments and Deductibles
It’s important not to confuse negotiated rates with copayments and deductibles. Negotiated rates represent the reduced price agreed upon with the healthcare provider. Copayments are the portion of the bill that the policyholder pays directly to the provider, as per the policy terms. Deductibles are the initial costs that a policyholder must pay before the insurance coverage kicks in.
How C1 Broker Can Help
C1 Broker, specializing in private health insurance in Portugal, can help expats understand these concepts and ensure they make the most of their health insurance. With extensive experience in the market, C1 Broker offers personalized advice to find the best health insurance solutions with maximum cost-efficiency. They assist in identifying the network providers available and in understanding how to leverage negotiated rates to reduce medical expenses.
If you are looking for health insurance in Portugal, or if you already have a policy and want a better understanding of how negotiated rates work, C1 Broker is the ideal partner to guide you. Their experienced professionals can help you choose the best insurance plan to suit your needs, offering comprehensive coverage and reduced costs for healthcare services.
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