What is the difference between public and private insurance?

Public insurance is insurance that is provided by the government and funded by taxpayers. Public insurance is generally free or low-cost and is typically used to provide basic health care to those who cannot afford it. Examples of public insurance include Medicaid, Medicare, and Children’s Health Insurance Program (CHIP). Private insurance is insurance that is bought by individuals and families from a private insurance company. Individuals typically pay a monthly fee for private insurance, and in return, the insurance company will provide payment for medical services when needed. Private insurance also often includes additional services and benefits, such as vision and dental care, prescription drug coverage, and physical therapy. The primary difference between public and private insurance is who provides the coverage. Public insurance is funded by taxpayers and administered by the government. Private insurance is funded by the individual and purchased from a private company. Public insurance generally provides basic and low-cost coverage with fewer additional services, while private insurance may provide additional services and benefits for a higher monthly cost.

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What is the difference between public and private insurance?

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