In the history of health insurance in us , “accident insurance” began to become available, acting as a modern disability insurance. This payment model continued into the early 20th century in some jurisdictions (such as California) where all laws regulating health insurance actually refer to disability insurance.
Health insurance works by protecting your property from the high cost of health care. Without it, your entire life savings could be wiped out by a $ 300,000 medical bill. In fact, health care spending is the No. 1 reason for bankruptcy.
This is complicated, and many people are overwhelmed with the process. Health insurance is outlined here and how it has become a major delivery vehicle for health care in America.
Why you need health insurance
Americans need health insurance for the high cost of health care. Unless you are very rich, over 65 years old or very poor, you need it. Most rich people can afford exceptional emergency or long-term medical care. More than 65 people pay for Medicare. Many poor people can qualify for Medicaid.
Everyone else has to buy health insurance or go bankrupt. This is like insurance for your car, home or apartment. It is believed to save your life from the catastrophic costs of a major accident, medical emergency or chronic illness.
But, unlike other insurance, health insurance makes it possible to get the health care you need when you need it. If you don’t have car insurance, you can get on the bus until you fix your car. If you break your leg, you cannot divide it yourself until you go to the doctor.
How to Choose Health Insurance
Health insurance companies provide lots of choices. But before you select a plan, you’ve got to wade through various combinations of deductibles, copayments, coinsurance, and premiums.
- Monthly premium. Like auto or homeowners insurance, you pay for it even if you never claim it. It provides cash flow so that insurance companies can cover their daily expenses.
- Reduced. Before you pay a contribution from an insurance company. Deductions range from $ 500 per year to $ 10,000 or more per year. Reduced deductions only come from company-sponsored schemes. They are annual, which means you start on January 1st of each year.
- One copy for each trip. A typical coop is $ 20 per doctor visit, $ 50 per hospital visit, and $ 10 to $ 40 per prescription. You have to pay 100 percent for the trip until the exemption is available.
- It is the percentage you pay for policies such as surgery or hospital stay. If your doctor visits you at the hospital, you can pay for travel and coins for hospitalization.
Why do insurance companies charge deductibles, caps and coins insurance? For every sniff they want you to stop walking to the doctor. They were concerned that if health care was 100 percent free, their costs would be higher. The Affordable Care Act states that these pocket-out costs do not exceed a maximum of $ 6,600 or $ 13 for a family. After that, the insurer pays 100 percent.
All of these options make health care insurance extremely complicated. You have to be a weird producer on your own health.
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For example, you may be willing to pay a higher monthly premium for a lower coin percentage and / or discount. If you have a chronic disease like diabetes it makes sense and you know that you will often see a doctor.
On the other hand, those who are healthy should seek the lowest premium and the highest discount. They are willing to take the opportunity to pay more for health care because they believe the opportunity is less. The higher the deductible, the higher the premium, co-pay or co-insurance. As health care costs increase, more and more people opt for high-deductible plans to keep their monthly premiums affordable. Obamacare has not corrected this inherent flaw in the health insurance system.
Why the US relies on insurance for medical care
According to The history of health insurance in us Center for Disease Control and Prevention, as of 2018, 68.9% of American adults have private health insurance.
Before World War II, most Americans did not have health insurance. Existing policies cover only hospital room and board costs. After the war, the federal government set up a wage freeze to curb inflation. But this does not mean that companies do not pay to get the best employees. Instead, they offered benefits, including health insurance.
This made additional health insurance worth more than the taxable salary. The Tax Policy Center estimates that this tax break alone will increase the US deficit by $ 250 billion a year. They are unlikely to be reelected if the politicians suggest it should be removed.
This is especially true because this tax deduction is similar to a government insurance subsidy for the upper-middle class and the rich. The Tax Policy Center finds that the average benefit of a health insurance tax break for a home in the 15 percent tax range is approximately 1 281. But the benefit is 25 37 per cent for taxpayers 4 374.
Health insurance options
According to the history of health insurance in us Center for Disease Control and Prevention, as of 2018, 68.9% of US adults have private health insurance.
In the late 1990s and early 2000s, health system problems began to help patients cope with health system problems. In the history of health insurance in us The complexity of the health care system has led to many problems for the American public.
Most countries adopt universal health care. The government pays for health care just as it pays for education and care. It’s like expanding Medicare or Medicaid for everyone. When a Frenchman or a German goes to a doctor or hospital, the government pays the majority or the bill. The downside is that it can take a long time to see a specialist or get an emergency operation. On the other hand, no one is worried about dying of the disease because they cannot afford treatment.
When HillaryCare tried to implement universal health care in the US, the medical profession and health insurance companies defeated it. Obamacare was originally presented as universal health care. But insurance companies have shifted to relying on their products.
The alternative to health insurance is self-pay. If people pay for their health care, they can negotiate the price to get the best deal. This reduces overall health care costs. They can borrow for expensive policies, such as a car or home. They take good care of their health to prevent preventable diseases like diabetes.
On the other hand, it forces low-income people to choose between food. Research shows that the higher your income, the better your health.
In Depth: Introduction of insurance