Abstract
Health Insurance is a form of insurance where an individual is insured against the risk of paying medical expenses in case they are in need of various types of medical care. Health insurance may not appear beneficial especially when a person stays for many years without becoming sick or requiring any medical care attention. However, it is clear that health insurance is necessary for every individual as it comes with numerous benefits. These benefits include protection from running into a financial ruin, access to preventive and primary care services, access to follow-up care services, eligibility to options for offsetting various coverage costs, and avoidance of a certain penalty.
Why have Health Insurance
Thesis Statement: It is necessary that every person pays for health insurance as it improves their access to various health care benefits.
Introduction
What is health insurance
Research Background
Thesis Statement
Health Insurance Prevents Financial Ruin
Terminal Illnesses and Traumatic accidents
Filling Bankruptcy due to lack of sufficient medical care money
Health Insurance Improves access to preventive care
Preventive care programs access and Primary care services
How access to preventive care improves health
Health Insurance allows cover for follow up care
Follow up care necessary after accidents
Health Insurance allows one to be eligible for various cover up costs
Cover up cost for low and moderate income earners
Out-of-Pocket Expenses
Health Insurance prevents a penalty imposed by law
Conclusion
Why have Health Insurance
Health Insurance is a form of insurance where an individual is insured against the risk of paying medical expenses in case they are in need of various types of medical care (Pauly & Goodman, 1995). An insurer makes an estimation of the overall risk of a particular health system in a target group and then develops a financial structure that ensures availability of money for paying the healthcare benefits that are normally specified in the financial agreement. Since people cannot predict when they will fall sick or require medical care, sometimes it might feel like there is no need for one to have health insurance. It seems like an overall loss where one may spend years paying for health insurance but they do not get to use any of the healthcare benefits listed. However, one must note that Health insurance is vital in the life of every individual since a single instance of medical care may require a lot of money even during the unexpected time. After the launch of the Affordable care Act in America, it was compulsory that each American purchases health insurance at the start of year 2014 (Manchikanti & Hirsch, 2012). By then, a significant percent of the American people did not have health insurance and therefore, missed the various benefits of healthcare insurance. Some of them especially the young and healthy people did not find any importance attached to healthcare insurance. However, they ended up realizing that is was important that they paid healthcare insurance due to its numerous benefits. This paper looks into the issue of health insurance and the reasons why it is necessary for every person to have health insurance.
Health insurance is necessary since it prevents one from the risk of financial ruin. One may be fit and healthy right now but in case a sudden or serious illness such as cancer or diabetes strikes, they might require huge finances to cover the cost of care for such cases. In the event of a traumatic events such as a car accident, one may be left with staggering bills to clear. If a person fails to pay such medical bills, which are usually high, they may be forcedto file for personal bankruptcy (Himmelstein et al. 2005). Filing for personal bankruptcy ruins the credit history of an individual and may set them back for many years.
Health Insurance is necessary as it helps an individual to access preventive care and primary care services. The law has been laid out in such a way that insurers should be able to cover for the preventive care and annual checkups that are necessary for the citizens. These annual checkups and preventive care programs include vaccinations, prostate cancer screenings, and colonoscopies. The insurer covers these costs without co-pay (Berwick et al. 2008). Therefore, when an individual has health insurance, they can be able to stay healthier and detect health problems earlier when these problems areeasy and inexpensive to treat. Such programs and checkups are also beneficial to young people, as regular checkups will ensure that they lead a healthy life and can detect any developing problems earlier.
Health insurance is necessary as it makes one-access follow-up care services easily. It is normal for the emergency departments in hospitals to take care of individuals with urgent needs such as head injuries from accidents, broken bones, or burnt body parts, without getting concerned with the ability of the patient to pay. However, it must be notedthat follow-up care and any other services that are required for the individual to fully recover, might require a certain amount of payment. It is therefore necessary that one pays for health insurance as it will cover for all these costs and they will be able to access all the follow up cares services required so that they can recover fully from their injuries or other body problems (Lowe et al. 2005).
People who have paid for the health insurance are eligible for options to offset the various coverage costs. The Affordable care act created a health plan applicable state-based insurance market places. People who earn moderate and low incomes can now access tax credits and subsidies for offsetting the out-of-pocket expenses and premium costs that are sold in health insurance market places. Out-of-pocket expenses can be costly to low income earners and therefore, the ability of the health plan introduced by Affordable care act to offset these costs is an added advantage of having paying for heath insurance.
In U.S.A., paying for health insurance prevents an individual from paying a penalty. After the establishment of the new healthcare law through the affordable care act, people who have not paid for health insurance would have to pay a tax of $95 per adult from year 2014 or 1% of their annual income which would increase to $695 or 2.5% of their annual income by year 2016 (Sommers et al. 2014). Therefore, even if an individual is completely sure that they do not require the benefits that emanate from having paid for health insurance, they still need to pay so that they can avoid this penalty.
Conclusion
Health insurance is necessary for everyone since no one can predict their future and therefore, know whether they might require the health insurance befits in future. Paying for health insurance will reduce the risk of paying huge amounts of money in case of terminal illness or accidents. It also brings various other benefits including follow up care and preventive care programs.
References
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http://papers.ssrn.com/sol3/papers.cfm?abstract_id=664565
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Manchikanti, L., & Hirsch, J. A. (2012). Patient Protection and Affordable Care Act of 2010: a primer for neurointerventionalists. Journal of neurointerventional surgery, 4(2), 141- 146.
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