Health insurance provides security over-all security in terms of health. In such cases wherein a person requires dire need of medical service, insurance can help you access on free medical services for your convenience.
Health care is extremely expensive especially for countries with high standards of living such as those living in the first world countries. Since the expenses are really high, individuals prefer to have security not only of their health but as well as security of their financial assets.
Health insurance offers particular schemes wherein an individual conforms to a program of payment. Similar to taxes or what they call premiums, the individual religiously pay the set agreement between the insurance company and their preferred program. The health insurance assesses the characteristic of the individual in order to determine the risk of health impairments. This is where they base the health insurance program for the individual.
Currently, the vast expansion of this health insurance firms has led the people into the trend of health insurance preferred necessities. Many families, especially for those high-risked, employ this type of insurance and view this as a dire need.
Companies and business association provides health insurance as part of their employee benefits. However, there are certain limitations for these insurance programs; since, it only depends on the rightful premiums that the individual pays.
The current trend of health insurance in the market is now at risk of endangerments. Approximately, there around 84% of American people who are actually insured and each one of them has varying source of their health insurance.
The economy of United States and other counties are very much advancing these days, hence, expectations of increase economic progress is indeed possible. The actual implication of this condition to health insurance crisis is the increase of individuals who apply for health insurance. The vast growth of economy also increases the growth and expanse of different organizations that provides insurance as part of their benefits.
Another point to view at, aside from the insurance firm scarcity, is the general capacity of the private working and non-working individuals to avail such health insurance. The fact about health insurance is the actual expensive characteristic of such service.
Since most of the insurance holders get their health insurance benefits from their employees, we cannot consider every person possessing insurance since not all are provided with the same benefits. Another crisis tat involves health insurance is financial status of the people living in the United States. Not every citizen can afford to have such service because of financial constraint.
There are many contributing factors, which cause the decline of health insurance reply. The proportion in terms of requirements and supplies are very much in inverse relationships.
The crisis of service is caused by the increase of health insurance applicants while the companies that render such service gradually increase. The slow growth of service supply cannot rightfully cope up with the society’s need. The aim of this research paper is to determine the contributing factors that affect such conditions.
In this research paper, we are going to determine the effects and the risks that cause the decline of health insurance. This research paper shall rightfully answer the following proposed objectives.
a. Determine the various factors that cause the crisis of Health insurances.
b. Analyze the effects of these factors, interpret the results, and provide the implications, both long-term and short-term, of the said crisis.
c. Provide solutions that are being adapted in order to resolve such crisis.
Health insurance is a dire need in the society, yet in faces tremendous shortage due to advancing needs.
The significance of this research is the provision of crisis description; hence, enabling planning, implementation and evaluation of such crisis. On the other hand, the limitations of this research lie mainly on the proposed objectives. The research shall focus mainly in the proposed objectives of the research.
In the Unites States, almost every company provides health insurance for their employees. The employees per company usually range from ten to thousand employees, and each one of them is being provided by health insurance.
According to statistics, there are around 84% of American people insured in 2007 and 60% of this insured people possess their health insurance from their company. The statistics show only 5% of them avails insurance from their own financial resource while 19% obtains their insurance from government agencies. Out of the total population in the United States, 45 million people do not have any health insurance.
This is around 16% of the total population; however, this data are only crude ratings and do pose guaranteed accuracy but rather estimation (Derek, 2004). Using this statistics, we can determine two major crises that involve health insurance.
Scarcity of Health Insurance Service
According to the book of Verheijde (2006) entitled, Managing Care: A Shared Responsibility, the increase of business corporation expands its body as well, which is the number of employees, and create scarcity effect of insurance firms.
Insurance firms are mostly and readily accessible in the United States and in every country as well. This promotes the company as well as increasing the number of their insurance holders. However, the beneficiaries of health insurances from the companies are the ones that trigger the scarcity effect.
Scarcity occurs if the available resource is exceeded by the number of individuals requiring the particular resource. This condition promotes depletion and in the end, the amount of available resource is not anymore enough to supply every individual. Conditions such as this trigger various effects such as price hike and dispute over the particular resource. In our case, impending scarcity of health insurance suppliers occur since, there are a mast of civilians availing such service.
This triggers the increase of premiums as well as massive inappropriate discrimination at some points. Effects of this price increase leads to another reason of health insurance crisis occurrence (Haley & Deevey, 1997 p.106).
In raw quantitative data, there are around 120 million of health-insured individuals that only acquire their insurance from their employer. The government employees and personnel cover around 39.2 million from Federal, State, Military and Local.
Fortunately, there are public insurance programs as well such as Medicare, which covers 39 million, and Medicaid, which covers 41 million. This numbers are still expected to soar high for the coming years hence, increasing the number of insured individual as well. The chain reaction, however, is the increase of insurance costs (source: www.pbs.org).
Every time an employer hires an employee, he directly calculates the amounts of productions, expenses and part of this is actually the insurance costs. The soaring insurance premiums greatly increase the salary deductibles of these individuals, which decreases as well their over-all salary.
Moreover, the employers possess tax-free health insurance premiums, while the employees possess health insurance with tax pays. This condition greatly increases the financial load of the employee.
The presence of 47 million uninsured individuals plus the rising costs of the premiums has led to the great crises of health insurance (Chavez, 2007). The scarcity of the situation might further increase the premiums thereby, aggravating the situation more.