In the United States consumers may choose to purchase health insurance from any private insurance company, or they may receive it through an employer-sponsored program. In addition, the federal government offers subsidized programs to supply health insurance to the elderly and low-income families and individuals. But even with this combination of factors, millions of Americans lack adequate health insurance.
Purpose
The purpose of heath insurance in the United States is to ensure that citizens have access to affordable health care and can receive care in a timely fashion. Health insurance reduces the cost to patients and families by paying for certain types of care, depending on the policy limitations.
Types
Each health insurance policy is different, which can make selecting the right type of insurance a complicated process. Some insurers offer personal policies that consumers pay for with their own money. Others work with employers to offer plans to employees at a reduced price. Within the limits set by the insurance company, buyers may choose the level of coverage and the amount of the deductible, which is how much the policyholder pays for medical care before filing a claim. Finally, the federal government administers health insurance through Medicare, for those over age 65, and Medicaid, for those with a very low income.
Benefits
The variety of health insurance options in the United States means that most consumers have a range of options, including high-priced plans that offer full coverage and limited plans that cost much less but feature a high deductible or limited coverage. Government-sponsored health insurance is only available to those on a fixed income or who would otherwise not be able to pay for care, reducing the cost to government.
Shortcomings
Millions of Americans lack health care, which points to the high-cost of private insurance and the general lack of low-cost options. Some employers fail to offer insurance benefits due to the cost, while young people may opt to go uninsured rather than pay high monthly premiums for insurance they may never use. The United States health insurance system lacks a mandate for coverage, which means that citizens have the choice to fore-go insurance. However, if uninsured patients seek care at a hospital, doctors are obliged to treat them. This can lead to personal financial strain or an additional cost to the health-care provider or government.
Alternatives
The primary alternative to the health-care system in the United States is a universal, or public, health-care system, like those that industrialized nations throughout Europe offer to all citizens. Public health care is funded by the government, which bears a much higher cost than a government that allows for a largely-private system, as in the U.S. However, no citizen is without basic coverage and private health insurance companies can still operate by offering supplemental coverage to consumers who want more than the basic coverage that a national plan includes.
Tags: health insurance, United States, health care, health insurance, Americans lack, basic coverage
