{Updated} Private Health Insurance | Public Health Insurance | Meaning | Difference | Examples

Post Updated on 18 January 2020

Difference between Public and Private Health Insurance Companies: Hello, If you are searching for the detailed information on private and public Health Insurance then you landed in the right place.

Even though you may not have heard about this before I'll try to explain in a pretty simple and easy way.

What is Private Health Insurance?

As the word private suggest, Private Health Insurance is a type of Insurance that is marketed by Private companies or individual.

Private Health Insurance can be purchased from the variety of sources like your employer, a State or Federal marketplace, or the private companies etc.

Private Insurance Premiums are Usually Higher than Public since their motive to gain profit.

Example: If you Purchase Life, Car Insurance from XYZ Pvt Ltd.

What is Public Health Insurance?

Public Health Insurance it's just the opposite of private health insurance.

Public Health Insurance is the type of Insurance that is provided by Government

Example: If you Purchase the Health Insurance from Government. The Best example of Public Health Insurance is Medicaid.

Difference between Public and Private Health Insurance

Definition:- Private Health Insurance is a type of Insurance that is marketed by Private companies, individual & more.

Public Health Insurance it's just the opposite of private health insurance.


Public health Insurance is provided by the state-run government the best example of public health insurance is Medicaid.

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Cost:- Private Health Insurance is Costlier than Public Insurance.

Since their main motive is to make the profit so it is costlier than public companies.

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Enrol:- You can enrol Public Health Insurance anytime after you qualify whereas private health insurance has defined enrollments periods.

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Coverage:- Public health insurance coverage begins from the first month after the application you receive whereas in private health insurance coverage begin dates may vary.

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Providers:- Public Health Insurance is provided by the government whereas private health insurance is provided by private companies, employers, etc.

Public and Private Health Insurance Examples

Medicaid and Child Health Plan Plus (CHP+)  is the best example of Public Health Insurance.

Medicaid is the State-run government insurance and its main motive is to provide insurance to low-income group.


Similarly Child Health Plan Plus (CHP+) it's main motive is to provide very cheap or free Health insurance to children.

Another popular example of Public Health Insurance is medicare its main motive is to provide health insurance to senior citizens who are not cover by private health insurance.

Talking about The examples of private health insurance, any insurance provider other than the government is private health insurance provider. an example could be doctors, hospitals, employers etc.

I hope you Enjoyed this article...Still, any Confusion persists please feel free to comment below :-)