Workers’ Compensation and health and/or disability insurance differ greatly. There are many differences between the types of insurances. Workers’ Compensation has specific guidelines and parameters whereas health insurance and disability insurance are not as specific.
Health insurance is a preventative care that ensures overall health and wellness. Health insurance is normally between a contractor and a buyer. As I stated previously, it is a preventative service. So, by singing up by contract, the buyer agrees to be covered by a certain amount. This dollar amount is what the health insurance company is willing to pay for and cover for medical expenses. These expenses can include, but are not limited to, office visits, x-rays, prescription drugs, Emergency Room visits, and emergency/ambulance care. The contract, or health plan, states the agreements and qualifications between the insurance company and the consumer. In this health plan the buyer agrees to pay a premium, monthly payment. The payment amount is dependent on the amount of money the health insurance company is going to cover. The higher the company will cover, the higher the monthly premium.
Disability insurance works in the same fashion as health insurance. For disability insurance, the consumer enters into a contract and agrees to pay a premium. Many aspects of the two types of insurance are the same. The only difference is what is being covered. For disability insurance it only covers disability…and that is it. So, it is only good for those who are disabled. Other than that, it is useless to the non-disabled.
Workers’ Compensation is not a contractual agreement. Workers’ compensation is normally given for free by the company, business, or state you work for. There are no monthly premiums or set amounts of money that are covered. The amount of money covered by workers’ compensation is determined by the injury or illness. So, this service is to ensure the welfare of workers. For workers’ compensation it only covers illnesses or injuries incurred from the work place or job conditions.
