Why do companies buy social security and commercial insurance?

Commercial insurance covers a much wider range of coverage and fields than social insurance, so social insurance can never replace commercial insurance. What you want to know is the difference between commercial insurance and social insurance in this article.

There are many differences between social insurance and commercial insurance. Let's take medical insurance as an example to briefly explain why commercial insurance can't replace social insurance.

1, differences in security content

The content of social medical insurance is very limited, far less than that of commercial medical insurance. For example, commercial medical insurance can cover the medical expenses of examination and treatment items due to the application of large-scale medical equipment such as positron emission tomography (PET) and electron beam CT, but social medical insurance cannot do this.

As shown in the figure below, the types of drugs that can be reimbursed by social security are also very limited. For example, in cancer treatment, there are many targeted drugs with relatively small side effects and high curative effect, but these specific drugs are very expensive. For example, Kelida, which treats lung cancer, costs more than 50,000 yuan per month. For patients who have not purchased commercial medical insurance, such drugs can only be out of reach, because social medical insurance does not include this cancer-specific drug.

2. The reimbursement amount is different.

Because of its welfare, social security has a relatively low premium, and its security and reimbursement scope are also relatively low. If you receive treatment in a different place, even if medical insurance can be reimbursed, the reimbursement ratio will usually be reduced. Therefore, social medical insurance may be enough to meet the expenses of minor illnesses, but it is not enough to face serious illnesses. As shown in the figure, more than half of the medical expenses and less than 50% of the social security reimbursement.

The above are just some differences between commercial insurance and social insurance in medical insurance. Other differences, interested friends can see what good medical insurance recommendations are there? 20 Best-selling Medical Insurance Inventory in 2020