BROWSE

Unallocated Benefit

What is 'Unallocated Benefit'

A provision available in health insurance policies, where the insurer covers extra miscellaneous hospital expenses up to a predetermined maximum amount, instead of specifying a maximum payment for each individual type of expense. An unallocated benefit reimburses policy holders for extra hospital expenses, such as the costs of anesthesia, X-rays, lab tests, medications and supplies, all of which may be provided without entirely conforming to a schedule.

Explaining 'Unallocated Benefit'

A health insurance policy's schedule of benefits lays out which services the policy covers, how much the policy will pay toward the cost of those services and how much the policyholder is expected to contribute. It also states the policyholder's annual deductible, annual out-of-pocket maximum and lifetime maximum, and shows the difference in benefit amounts, if a medical service is acquired from an out-of-network provider, rather than an in-network provider.


Further Reading


Tax advantages of ESOP financing
search.proquest.com [PDF]
… the traditional registration procedure. In terms of benefits, we find that stock-return volatility and the likelihood that firms use shelf are positively related. Thus, the firms we anticipate would benefit the most … unallocated shelf use …

Guide to practical project appraisal. Social benefit-cost analysis in developing countries.Guide to practical project appraisal. Social benefit-cost analysis in developing countries.
www.cabdirect.org [PDF]
… the traditional registration procedure. In terms of benefits, we find that stock-return volatility and the likelihood that firms use shelf are positively related. Thus, the firms we anticipate would benefit the most … unallocated shelf use …

Understanding the economics of leveraged ESOPsUnderstanding the economics of leveraged ESOPs
www.tandfonline.com [PDF]
… the traditional registration procedure. In terms of benefits, we find that stock-return volatility and the likelihood that firms use shelf are positively related. Thus, the firms we anticipate would benefit the most … unallocated shelf use …

Cooperative principles and equity financing: A critical discussionCooperative principles and equity financing: A critical discussion
ageconsearch.umn.edu [PDF]
… the traditional registration procedure. In terms of benefits, we find that stock-return volatility and the likelihood that firms use shelf are positively related. Thus, the firms we anticipate would benefit the most … unallocated shelf use …



Q&A About Unallocated Benefit


Where can you find an example of an unallocated benefit?

You can find examples of this in health insurance policies.

What is an unallocated benefit?

An unallocated benefit is a provision in health insurance policies where the insurer covers extra miscellaneous hospital expenses up to a predetermined maximum amount instead of specifying a maximum payment for each individual type of expense.

Why do economists consider street lights to be an example of a public good?

Street lights are considered to be an example of a public good because they provide light for everyone on the road at night without having to pay for it individually. They don't have any rivalrous effects since one person's use doesn't affect another person's ability to use them. They also aren't excludable since anyone can access them without paying for them individually or being excluded from using them by others who have paid for their use.

What does an unallocated benefit reimburse policy holders for?

An unallocated benefit reimburses policy holders for extra hospital expenses, such as the costs of anesthesia, X-rays, lab tests, medications and supplies.

How much does the insurer pay toward these extra miscellaneous hospital expenses?

The insurer pays 100% toward these miscellaneous hospital expenses.

How can you tell if something is a public good?

If the good in question is both non-excludable and non-rivalrous, it's likely to be a public good.

Are there any limitations on what constitutes as a "public" or "private" goods?

No, there aren't any limitations on what constitutes as either type of goods; however, economists often classify private goods into two categories based on how much people will demand in relation to their availability (which would determine whether they're rivalrous or excludable). The first category includes those with high demand relative to availability (e.g., food) while the second category includes those with low demand relative to availability (e.g., diamonds). Economists also distinguish between private and social costs when determining if something should be classified as either type of goods (see below).

What is a public good?

A public good is a non-excludable and non-rivalrous good.

What are some examples of goods that are not necessarily public goods but may be considered as such?

Goods that may be considered as such include national defense, street lights, clean air, lighthouses and bridges.