The People Factor

The People Factor

Introduction

Heath is one of the fundamental rights that an individual enjoys over the society. There are a number of facilities that must be provided to the citizens. These include hygienic and well-equipped medical facilities, hospital and clinics, trained medical experts and personnel, access to medication, synthetic drugs and syringes, and other important tools and equipments that the health care setup in any country must possess. However, the important thing to note is that the availability of these services is useless until and unless they are easily accessible to the individuals. It has been observed by many researches over the years that the biggest and most commonly observed obstacle in the way for the citizens to access these facilities and services is their high costs. Therefore, although the availability or access to health facilities provided to all without any bias is a fact that is openly accepted and acknowledged in many developed countries. However, it is only unfortunate that even in the strongest economies such as USA, these essential health services and facilities do not serve and cater the individuals and families belonging to low income backgrounds. The fact that the Governments in these countries have failed to propose effective healthcare policies is indeed an alarming sign.

Discussion

The sudden rise in inflation has affected even the most economically strong and stable countries in the world especially United States of America. In addition, the introduction of various new and updated technologies in the health care system has although offered several benefits in improving the health care standards. However, these technologies have also introduced additional costs and expenditures in the overall health system. This factor, along with the unemployment or limited employment factor has made it impossible for many low-income households to be able to afford quality health care insurance services or to afford any at all (Franks, Clancy & Gold, 1993). Relationship between Risk and Insurance

Risk can be defined as exposure to uncertainty. On the other hand, any insurance policy can be regarded as an exchange of a specific amount of loss (that is the premium) by an individual, to have another party, that is the insurer, absorbs only parts or all of the consequences that would occur by being exposed to the risk or uncertainty.

The two important factors of the insurance is exposure and risk or uncertainty. Health insurance is a perfect example to quote here. Any individual knows for certain that at some point in time he will get sick or face any other physical problem or disability. However, these individuals do not know for sure when or how they will get ill or sick. Hence, the insurer is covering that individual against a premature disease, symptom or condition.

Therefore, there exists a direct relation between risk and insurance. In more precise words, it can be said that a Risk in any aspect is converted or transformed into insurance. It can also be said that the Insurance is used to cover and cater any risk and ...