Examples of Health Insurance Value Chain

Examples of Health Insurance Value Chain

Health insurance is a type of insurance which covers some or the whole expense of ones healthcare. Keeping a healthcare is mandatory for one as you never know when you will get seriously ill or injured. On the other hand a health insurance will save you from sudden bankrupt or financial breakdown. Well, people do ask, “Why health insurance cost are so expensive?” It’s because of the health insurance value chain. Value chain means the entire production or management process ingredients of a company. Well, today we are going to explain this value chains in a health insurance. All this ingredients play a vital role in the health insurance industry. Let’s get a highlight on them.


People pay for receiving healthcare & such people are called patients. Without patients there will be no healthcare industry. Well, they pay for receiving service by making copayments or by premium payments. For copayments health insurance comes in. The more patients choose to keep health insurance the more the industry grants options and facilities.


An insurer is a person who connects with the people in need of an insurance. He describes about the plan and lets them choose their plan and makes an agreement. Health insurance value chains most important part is the insurer. How can you keep an insurance when there is no insurer to help you? Insurer plays a vital role in creating the insurance market. Anyhow the service intermediaries are also important. An insurance company, website or any other place where you will find an insurance. In the health insurance value chain service intermediaries plays a vital role.

Healthcare Providers

People are not always healthy. They need proper healthcare to stay healthy. Healthcare providers including hospitals, pharmaceutical, dispensary, doctor chamber, prescription is essential for any patient. The health insurance value chain is dependent on this element. Insurance policy can give you rich facilities depending on the healthcare providers.

Hospital and medicine cost, primary healthcare, out of pocket cost, in network healthcare all are included in the healthcare policy depending on the healthcare providers. Different industry have different policy. This is also true for healthcare providers. They maintain their industry by planning and giving you lots of facilities such as in network doctor, primary care doctors, medical expenses. The health insurance value chain also includes healthcare providers which is an important part for health insurance.


Healthcare suppliers play a dominant role in the value chain. Pharmaceuticals, medicine industry, health insurance industry are the main suppliers. Health insurance value chain needs this element because without suppliers you won’t get a proper health insurance. A supplier purchases healthcare products and provides them to the medicals, intermediaries etc. In the health insurance value chain suppliers play a vital role.


Without manufacturers the health insurance value chain would be incomplete. If a manufacturer stop manufacturing, then the suppliers will never get products. For this healthcare will be impossible. Without medicine or healthcare products it’s impossible for people to receive healthcare. Not only that creating a health insurance agreement will be nothing but a total waste of your time. Health insurance provide good healthcare according to the manufacturers.

E – Commerce

Modern world is simply nothing but online presence. An online presence can easily boost up business and saves clients time. E-commerce means online business. After year 1990 the online business trend streamlined all the health insurance value chains. The contact is easy and smooth, the health insurance customers don’t need to meet an insurance provider to make an agreement. You just scroll down on the website. Make an agreement. Online presence helps making a chain with the suppliers, providers, manufacturers or clients.

Some Final Thoughts

The term health insurance value chain means the whole production or providing process of the insurance. If you need to keep a health insurance than you must understand the value chain. People sometimes ask why health insurance are expensive. Well they don’t understand the value chain of a health insurance. If you can understand the production process you will understand the insurance policy or plans the dealer offers you.

Before you choose a plan you should check out the facilities and you’re out of pocket costs. A health insurance depends on their elements such as Patients, service providers, manufacturers etc. They can offer you facilities according to their value chain elements.

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