What is the difference between public and private insurance?

The main difference between public and private insurance is how the insurance is funded. Public insurance is funded by tax dollars and is typically offered through government-run programs. Examples of public insurance are Medicaid, Medicare, and the Children’s Health Insurance Program (CHIP). Private insurance, on the other hand, is paid for by individuals or companies and typically comes in the form of employer-sponsored plans (in the case of companies) or purchased by an individual from insurance companies. In Idaho, some examples of private insurance are Blue Cross Blue Shield, Regence, and Pacificsource. Other differences between public and private insurance come down to cost, coverage, and eligibility. Depending on the particular program, public insurance may offer more comprehensive coverage and may be more affordable since it is largely subsidized by the government. Some public insurance may also cover services that private insurance does not, such as long-term care. Private insurance may also offer a wider variety of coverage choices and is available to those who may not qualify for public insurance due to income and other factors. In Idaho, both public and private insurance options provide important access to health care coverage for its residents. Public insurance helps those with limited incomes or medical conditions to still receive the care they need, while private insurance offers a choice in the kind of care or coverage a person may need.

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What is the difference between public and private insurance?

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