Health insurance prices are outrageous

Health insurance prices are outrageous

Introduction

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant facts and figures related Health insurance. Health insurance is the term as the insurance adjacent to the risk of incurring medical expenses among individuals. It is an instrument of transmission threat to a third party or risk pooling over large groups or transfers the benefit from healthy to ill individuals. Moreover, individuals develop a plan such as a monthly premiums or payroll tax, in order to keep a certain amount on the safe side for health care benefit. Health insurance provided by the private organizations as well as a government organization. There payments system differs in these organizations. Along with this non-profit organization administer the earnings of the insurance policies beneath their organization. There is group health insurance and an individual health insurance. These insurance policies have to been purchased from the health insurance companies. Health insurance pays the bill for the part of a person health care. The main objective of this insurance is to assist individuals in covering their cost of health. These cots consist of visiting the doctor, hospital stay, surgeries, medical tests and other various treatments and services (Gruber, 2003). In this paper, the author will examine the fact that health insurance prices are outrageous and it is imposing a negative effect on the public's ability to pay for health services.

Discussion & Analysis

The health care system of America encompassed of mixture of the of health insurance programs. Comparing to other countries where government finance healthcare for their majority of their private, resident, and employer sponsored insurance which has been a primary source of insurance in United States that covers almost 60% of American. The most expensive health care system is in United Sates with per capital health expenditure comparing to other nations. The cost is high above the overall rate of inflation (David, 2006).

Private health care coverage is a system for people that have a potential financial power to meet their medical care and ensure the access of health care when needed. Health insurance consists of the insurance provider and insurance holder. The person who is paying the amount monthly or quarterly, to the insurance company, is term as the policy holder and the person to whom the amount made, term as the policy provider. Policy provider is the third party which ensures that the payment be made to the service provider on behalf of the individual. Health coverage offered by public and private sources. Public sources encompasses of the State Children's Health Insurance Program, federal and state employee health plans, Medicaid, Medicare, the military and the Veterans Administration (Christine, 2010).

The providence of health coverage is through benefit plan that sponsored by employers. Health insurance can be obtain privately if employer sponsored insurance cannot be access. Besides this, Affordable Care Act of 2010 ACA that built on the employer-based health insurance system by developing exchanges through which small employers can ...