The Importance of Having Health Insurance - Essay Example

The Importance of Having Health Insurance Insurances are done in an attempt to save money in case of a mishap or an unexpected catastrophe in which the company is liable to pay the bills of the individuals who have attained the assurance. There are many different kinds of insurances and health insurance is one of them. This insurance is devised for the health and safety of an individual. With the changes in technology and upcoming of new medical procedures, medical practice has become very expensive. A proper health cover has hence become very essential. Health insurance policies differ in different places around the world. With the increasing awareness regarding the health, the trend of getting health insurance has greatly increased over the years. It has been estimated that around 85 percent of all Americans have their health insurance done either by their organizations that they work in, by the government or by private health insurance policies. This paper will focus upon the benefits of health insurance explaining its increasing importance in today’s world. Health insurance is on a rise and the reason behind this is the changing lifestyles and the unhealthy practices of individuals. Smoking, drinking and obesity related diseases are rising. The elderly population has also increased substantially over the years due to the increased life expectancy. All these factors have made health insurance an essential part of everyone’s life. Many people consider it to be a financial burden but these people should consider the long term benefits of the health insurance. In case of an accident or sickness a person can loose a lot of his money if not covered by a proper health insurance. These points should be considered by people to understand the importance of this insurance. There are different kinds of health insurance. Two vital types are the basic health insurance and the major medical insurance. Basic health insurance is the type of health insurance which fulfills the needs of the individuals in relation to their expenses of health and safety. Health insurance policies tend to pay the expenses of the hospital, surgeries and physician. In basic health insurance these three aspects are covered in a combination such that the company is liable to pay for all the three aspects. The policies for basic health insurance are different and most of them include an additional option for which the individuals have to choose for themselves. This provides additional coverage to the policy holder with regard to their medical insurance. But an additional cost is also imposed by the companies for such an option to be availed. On the other hand major medical insurance is a type of insurance in which the company guarantees to pay the expenses which are not even covered by the basic health insurance. In other words where basic health insurance fails to cope up, the major medical insurance takes over. In such type of insurance the coverage provided is not complete but on the other hand coinsurance payments and deductibles are provided. These coinsurance payments and deductibles help to lower the expenses of the policy holder. However certain conditions may be levied while these incentives are provided. For example the payment of services beyond basic health insurance would be lowered down to 20% of the whole cost whereas the rest 80 would be covered by the company itself. Moreover such a policy also includes the stop-loss provision which would make sure that the policyholder does not have to pay after reaching a certain limit. After reaching this limit the company would be liable to pay the total expenses. This shows that each different health insurance policy has its own plus points. A closer understanding of these health insurance methods can clearly tell a person which health insurance plan suits them the most and which plan to opt for. These plans relieve the financial burden that a person might fact when he may be exposed to sudden medical issues. Health insurance has also been taken up as an important part of governments. The governments to ensure the well being of the citizens have introduced many plans with regard to their health care. The health insurance plans of the government of United States will help to have a closer analysis and understanding of the importance of health insurance. The government sponsored plans in the United States can be divided into two categories, firstly the state plans and secondly the federal plans. The state plans are for work related mishaps and illness of the workers as per the state workers compensation law. And federal plans include schemes such as Medicare and Medicaid. The workers compensation was seen as a necessity in the early 1900s during the time in which the number of workers rose to a great extent. As work related accidents were more common in those days it was seen as a necessity by the government to introduce such plans. These laws come under the jurisdiction of states and thus it depends on the states solely as to which workers are provided with such insurance. These compensations come into play when a worker faces an accident while working with his/her employer and the states tend to pay for medical expenses of the worker. The Medicare program is a federal plan introduced in the 1968 by the government. This program covers the disabled and the aged people of the society i.e. people who are 65 or older. The cost by such a program is covered by the Social Security benefits in which the individual person is liable to pay an annual deductible. A part of this program is voluntary to be chosen with an increase in the deductible. This part provides the coverage for the fees of the doctors and the medical supplies whereas the other part which is mandatory covers hospital insurance benefits. However this program still does not cover the medical expenses of prescriptions out of the hospital. Medicaid is a federal scheme introduced in 1865 which provides medical help to people who are needy. The word needy here implies on the people who are disabled i.e. blind deaf or aged and to the people who cannot earn enough to serve their dependent households. These programs provide an insight into the fact that health insurance is essential for people belonging to the different walks of life. They are as essential for the workers, the needy as they are for the people who belong to a higher social class. The difference would just be probably that the diseases and ailments that they would suffer from might be different. Many young adults are against the idea of getting their health insurance policy. They believe that they do not need it. Another reason is that they consider it to be expensive and prefer spending that money on other expenses. To address this issue the house speaker Nancy Pelosi included the health insurance of young adults up to the age of twenty seven in their parents health insurance cover. The reason behind this is that young adults are more susceptible to diseases and infections which include Chlamydia, human immunodeficiency virus and gonorrhea. It can be seen from this act that the government realizes that health insurance is very essential and this importance should also be looked at by everyone. Health insurance provides the benefit of not only a proper medical care but this care is also provided at the right time. It has been seen that people who are uninsured suffer from chronic conditions. The reason behind this is that they are not obliged to go for regular checkups. On the other hand many health insurance companies have the requirement that the insured people get regular medical check-ups done. Due to this policy the insured population gets a regular health check and if they are suffering from any condition it can be diagnosed at an early level which is beneficial for their health. Important screenings which include screening for cervical, breast and other different forms of cancer are also missed upon by the uninsured people. Due to this they might be diagnosed with these lethal conditions when it has reached a higher stage and caused much damage. Blood pressure and cholesterol tests also need to be done on regular basis and these might also be missed by the uninsured people. Many people believe that they are medically fit and do not require a health insurance. But these people miss upon the fact that any untoward incident or accident can lead to much health related issues. Studies have shown that uninsured people who are diagnosed late with certain conditions or have an accident do not have regular follow up treatment as compared to the insured people. It has also been seen that individuals who do not have health insurance do not continue with the regular treatment of diseases which requires long term medical management like heart diseases. Health insurance is also important because it provides offers for the customers who get insured. These offers provide low payment offers for their customer. Hence this puts the uninsured people at loss as well. Another incentive which is provided to the customers is that they are provided a greater access to medical services. Health insurance helps in the reduction of many diseases and hence providing a better life expectancy and reducing the mortality due to curable diseases. Health cover also relieves the patients from the strain of going again and again to the hospital for the payment of bills. This is because all this is mostly covered by the health insurance company. It has been reported by the Institute of Medicine that people who are not insured would want medical services for free or in reduced prices and this can be a burden for the clinicians and health care personnel. Much awareness regarding the importance of health insurance has been created and more needs to be done. Health insurance is a vital and important policy which should be availed by people who can. The strength in the argument supporting health insurance cannot be overlooked. It clearly indicates that health insurance can be beneficial for the health and better life of an individual. Though 85 percent of the population of United States is covered by health insurance, there are hundreds of people who are still uninsured. According to a research conducted by the Institute of Medicine, there are eighteen thousand additional deaths each year related to the uninsured population. Thus for leading a healthy life without having to worry about the high expenses related to sudden medical illnesses, a health insurance is very important. References: Institute of Medicine (U.S.). Coverage Matters: Insurance and Health Care. Insuring health. Washington, D.C.: National Academy Press, 2001. Lenneice Drew, Some Young Adults Feel Health Insurance is Pricey and Pointless http://ezinearticles.com/?Some-Young-Adults-Feel-Health-Insurance-is-Pricey-and-Pointless&id=3209600 McLaughlin, Catherine G. Health Policy and the Uninsured. Washington, D.C.: Urban Institute Press, 2004. New York (N.Y.). Health Care Access Among Adults in New York City: The Importance of Having Insurance and a Regular Care Provider. New York, NY: New York City Department of Health and Mental Hygiene, 2007. The Importance of Health Insurance Today, http://www.articlesbase.com/health-articles/the-importance-of-health-insurance-today-224425.html Read More