An overview of the health insurance system in the United States

An overview of the health insurance system in the United States

The US health insurance system is considered to be one of the most important insurance systems in the country. It is a well-known fact that the cost of medical care in the United States is steep. Therefore, it is best to buy a health insurance plan and get your medical expenses covered by the health insurance company.

An overview

The concept of health insurance in the United States was first considered as voluntary programs. Already in 1850, health insurance had already been made available, mainly by brutal benefit associations and cooperative mutual benefit organizations. However, the spread of health insurance systems in the United States was still vague until the 1920s when most people were treated at home. Therefore, the need for comprehensive health insurance was not necessary.

In addition, most insurance companies were unsuitable in providing health insurance at the time, given the very low demand for such insurance. Experts say it was at this point in history that insurance companies believe that health was not an insurable service due to high probabilities of moral hazard and negative selection.

Moral danger relates to the mental state and behavioral changes caused by an awareness that if something terrible should arise, all of his insurance policies are alleviated. Side effects, on the other hand, relate to an individuals prerequisite for insurance because he is most likely to use it. Therefore, those who are ill and unhealthy are likely to buy health insurance than those who are healthy. Healthy people would probably not buy health insurance because they do not need it and would regard it as electrical and not extremely necessary, except that it is an additional cost.

But when the development of medical technology and medicine continued, the cost of medical treatment has become expensive. And with the growing need for healthcare, especially the older generation, more and more people knew that they needed good health insurance to cover their healthcare costs.

And since the US health insurance system continues to develop, commercial companies have been able to provide limited health insurance. Many trade unions and other companies could also offer limited health insurance plans. Most health insurance was carried out by Blue Shield and Blue Cross. They were available primarily as nonprofit and socially funded plans based on agreements with the subscriber and the affected hospital.

The pharmaceutical insurance system in the United States was further improved by various governments promoting the use of health insurance. The need to provide possible medical care for the elderly was evident, consequently the creation of Medicaid and Medicare.

Medicaid was created for the poverty-deprived population. Since the beginning of 1972, the number of people previously lacking health insurance has increased significantly. Alternatively, Medicare, a state-sponsored health insurance program, was created to cover the cost of health care for the elderly.

So far, more than 80% of the American population is already covered by health insurance. Almost 60% of total insured members received their plans through employers while more than 25% of Americans receive health insurance through different authorities. The number of persons receiving health insurance increased from 12 million to more than 220 million in 1996.

However, the increased costs of health insurance were felt by the members. This shows why nearly 44 million people in the United States chose not to get health insurance. Premium prices have increased significantly, and employers providing health insurance to their employees have also increased the number of employees contributions.

In this way, the need to restructure the US health insurance system is important. A national health insurance system in the United States was considered the second best for a good government. Experts say that the United States should consider a national health insurance system, as it exists in all countries of the world.

Many people see the health insurance system in the United States more of a luxury than a privilege. Therefore, advocates of the National Health Insurance Scheme in the United States consider that legislators should create bills for national health insurance plans and provide comprehensive coverage for people with low incomes. Reports show that this marginalized sector in society covers two thirds of the uninsured population.

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