Estimating Demand for Private Health Insurance: Lessons from Europe and the USA

by

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I [type your full first names & surname here], declare that this dissertation represents my own work, except where due acknowledge made, and that it has not been previously included in a thesis, dissertation or report submitted to the University or any other institution for a degree, diploma or other qualification.

Signed __________________ Date _________________

ABSTRACT

The main theme of this dissertation is to estimating demand for private health insurance in Europe and the USA. The specific aims of this proposal are to investigate the effect of health insurance and severity of illness on the probability of health care use and on the choice of public versus private providers (ambulatory care). This study deals exclusively with modern medical care providers, rather than with traditional care providers such as traditional healers and acupuncturists. Insurance is a device that has been developed to handle risk. Its primary function is to substitute certainty for uncertainty as regards the economic 'cost of disastrous events. Insurance may be designed more formally as a system under which the insurer, for a consideration usually agreed upon in advance, promises to reimburse the insured or to render services to the insured in the event that certain accidental occurrences result in losses during a given time period. The findings of this study suggests that the people who avail private health insurance are leading a comfortful and happy life.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER # 1: INTRODUCTION1

Background of the Study1

Problem statement2

Purpose of the Study3

Rationale of the Study4

Research question4

Conceptual framework5

CHAPTER # 2: LITERATURE REVIEW7

Insurance7

Characteristics of Insurance7

Reasons for buying insurance8

Prior Studies of Crowd-Out of Private Insurance by Public Program Expansions13

Predicting access: Andersen and Newman framework of health services utilization17

Access to primary and secondary care in the UK18

Primary care: access to general practitioners18

Secondary care: access to outpatient services and hospital consultants19

Private health insurance in the UK20

The role of private health care21

Private insurance buying behaviour22

Previous research on effect of insurance on physician utilization24

Impact of Private Health Insurance before and after Medicare25

Private health insurance, income and social inequalities in access to care in the UK27

Difference and similarities between Insurance and Assurance28

Life insurance29

CHAPTER # 3: METHODOLOGY30

Mixed Research30

Classification of research methods30

Multi-method studies31

Mixed method studies31

Steps in mixed methodology31

Strength and weakness of the mixed research32

Strengths32

Weaknesses33

Instrument for data collection33

Data analysis33

Reliability/Dependability33

Validity35

Ethical Considerations36

CHAPTER # 4: RESULTS AND FINDINGS37

Introduction37

Questionnaire Analysis37

Chi Square Testing for Private Health Insurance44

Status and history of United States health insurance45

Status and history of United Kingdom health insurance54

CHAPTER # 5: CONCLUSION63

Discussion63

Research Question's Discussion64

What are the demands for private health insurance in Europe and USA?64

What are the importance ...