ABSTRACT
This chapter explores the etiology of various private sector health care financing arrangements, describes and compares their configurations, and examines their potential for contributing to a solution of Peru's overall health care problems. Private health care coverage involves four essential participants: a financing entity, a medical care facility, a medical staff, and a beneficiary, who may be insured as an individual or as a member of a group. The market now became very competitive, with several factors contributing to the development of new health care financing and delivery systems. In all health care prepayment mechanisms, individuals pass their risk of incurring medical costs to an institution, which pools subscribers' risks as well as their premium payments. With traditional health insurance, the enrollee pays a fixed amount to the insurance company, thus transferring the financial risk of a possible illness to the company—to the extent specified in the policy.
