What Is An Insurance Guarantor? A health insurance guarantor, also known as a co-payer, is actually the individual who pays for the rest of the payment for healthcare services after insurance has already paid.
What Is An Insurance Guarantor? In most cases, the insured is their own guarantor except in special cases such as students or women who are married. Health insurance companies use this method for setting premiums as they believe that there is no guarantee that an insurance policy will be paid at all. That is why they offer such a guarantee.
What an insurance guarantor does?
What an insurance guarantor does is assure the company that the insured will be able to pay for the entire medical cost. If they are unable to do so, then the company cannot legally refuse the payment.
It is similar to having a co-payer in health care. They ensure the other party will be able to have the service or benefits promised.
Exact definition of a guarantor?
So, what is the exact definition of a guarantor? It is actually an individual who guarantees that the medical bill will be paid upon an insurance policy being issued.
Some insurance companies have different definitions and uses of the word “guarantor”. In general, however, the definition is as follows: the individual who guarantees that payment will be made upon a specific medical bill.
How long the individual needs to be a verified?
The next question that might arise is as to how long the individual needs to be a verified 6 days in order to be considered a valid guarantor for in answering What Is An Insurance Guarantor? .
The answer is that the company cannot legally refuse the payment based on the time that has passed since the applicant was responsible. As long as the applicant was responsible during the six days, then it should be accepted. There are no exceptions.
Who a health insurance guarantor actually is?
To determine who a health insurance guarantor actually is, it is important to know the different types of guarantors. There are three major types that are commonly used. The first one is that of an individual health care provider. A
health care provider is a type of health insurance guarantor that is typically responsible for one single claim or a group of claims. The provider can decide whether or not they want to be a guarantor for a specific hospital stay, procedure or treatment.
Second type is that of an insurance company
The second type is that of an insurance company. When an insurance company becomes responsible for paying medical bills, it is called a captive guarantor.
For a captive guarantor to be beneficial, there need to be many health care providers with which the company can negotiate payment terms.
Another significant difference between an insurance company and a captive guarantor is that the latter is not responsible for choosing the amount or frequency of payments. This responsibility is left up to the insurer.
The last major type is that of a health care provider, or a PPO. Health care providers can also be categorized as health maintenance organizations or HMOs.
With a PPO, or preferred provider organization, a person is considered to be a member of the plan and may therefore have better access to preferred rates. A person on a PPO will have a primary care physician or primary care practitioner.
The health care provider definition differs slightly from the medical dictionary because HMOs have a primary care physician, usually a family practitioner, who directs the patients’ medical care, whereas PPOs have no primary care provider.
How the guarantor definition differs?
Now that you know how the guarantor definition differs from that of the medical dictionary, you will be able to answer the questions above more accurately. If you are still uncertain, then it may be a good idea to speak to your insurance provider and ask them which type of guarantor you fall under.
Although it is a risk, the chances of you finding out before you use up a payment on your medical services are small, and any amount paid out in advance will negate any additional costs you are faced with.