Insurance Industry - Case Study Example

Running Header: Insurance Industry Student’s Name: Instructor’s Name: Course Code: Date of Submission: Insurance Industry Introduction Health care insurance in a country is one of the most important aspects of industry which makes sure that citizens are healthy to improve both social and economical aspects of the country. US and the UK have different health care insurance policies where US mainly operates on premiums and private insurance companies while the UK funds its health care insurance from general tax payers money. These two insurance policies differ in many areas because people in the US who cannot afford health insurance because of low income jobs are faced with hardships when they are in need of immediate medical attention unlike the UK. Those who are treated in the US using health care insurance also face huge debts that lead to bankruptcy. THESIS STATEMENT: This essay will discuss Health Insurance in both the US and the UK, compare the two policies and look at the reasons why UK has the best health insurance. Health Care Insurance in the US Health care insurance in the United States is based on premiums contributed or out-of-the pocket payment made on the onset of illness or in an emergency case. Most of health insurance is provided by private companies who demand premiums to be paid every month by either an employee or the employer on behalf of the work-force. Health care is provided on a supply basis which means that US citizens have to provide a lot of money before they are treated. Fishburn and Nemeck (2005) discovered that some international student cards in the US offer limited or partial health insurance cover. America is one of the richest developed countries in the world but it has severe case of poverty. Many people work in low income jobs that cannot allow them to have health insurance or out-of-the pocket money for treatment. Despite this, health providers treat those who have health insurance whether privately insured or those with out-of-the pocket cash with advanced technologies and work longer hours. This is because the insurance money has provided a good capital for doctors in the US to treat those who can afford treatment. Aaron and Schwartz (2005) observed that when the capital is high, services are more both for in and outpatients in the US. Health care in the US has a higher rate than inflation and both private citizens and government leaders agree on health care reforms to reduce the cost of health care in the US (Shippey & Auerbach International, 1995). Medicare in the US Medicare in the United States is a form of health insurance provided by the government for persons who are 59years and above. This health insurance works only when the elderly pay the initial deposit and the government pays the rest. Medicare pays for inpatient and also outpatient. The life expectancy in the US is 75.6 years lower than that of UK because of expensive health care system (Haley & Deevey, 1997). For those patients who have been admitted, the Medicare will cater for doctor’s medical bills, hospital bed and drugs while consultation will be paid by the initial deposit. Outpatient’s hospice care is also catered by Medicare especially when a person has six months left to live. Medicare does not provide funds for cure or treatment during this time but it makes the life of the person who has six months left to live more comfortable. Long term care is not usually provided by Medicare this is because the insurance is only for a short term treatment or hospice care. Newport and Gallup (2004) carried out a poll and found 8 out of 10 Americans did not support the cost of health care in the US and most had family members put off treatment because of its cost. Health Insurance in the United Kingdom United Kingdom has a different health care system as compared to the US. Most funding of the health care comes from the employed population through tax. Tax collected from the working population is divided between health care and other resources in the UK. This means that health care is based on demand. People who are sick in the UK get treatment free of charge regardless of their income levels. People who can afford or not afford health care get the same type of treatment from public hospitals. Mental health care is also provided when visible crisis such an accident has occurred (Wilkinson, 2007). This health care insurance funding comes from people who work on legal jobs in the UK. People who are poor in the UK can afford treatment and they can rest assured that the kind of health care received will not lead to debt because the health care fund is always on the national budget. UK has a centralized and health care is affordable to all residents because the insurance industry is not controlled by a few people who can decide to raise the insurance coverage (Wilensky, 2002). Foreigners in the UK will receive emergency care for free but other treatments beyond that require a health insurance. This has helped a lot of foreigners for example tourists, exchange students and also people on a business trip to the UK. Health insurance has been dominated by the government but there are few private companies in the UK that offer health insurance cover to clients. UK’s comprehensive and centralized health insurance plan makes sure that private insurance companies do not shift prices of insurance due to competition which will affect consumers (Flood, 2003). This form of insurance has helped a lot of people especially those who cannot afford treatment to get the best care so as to help in contributing to the health care insurance. People however complain that the health care provided in the UK does not meet the standards it should. This standard of health care is in direct proportion to the amount of money budgeted for health care in the UK. Some funds provided by tax payers are used for other expenses and if there is a need for the health care fund to be improved, then many people must need special hospital care. Health care insurance in the UK is based on supply and not demand. Sorell (2008) suggested that UK’s universal health care system does not however contribute to the rise in economy as compared to when there are a lot of private insurance companies. UK Health Insurance is the Best as Compared to Health Care in US Many developed countries except the US derive health resources either through tax or social security contributions (Gottret & Schieber, 2006). People in the US who can afford health care are those in the middleclass population because they have jobs can allow health care insurance premiums, living expenses and mortgages. People who work in low income jobs or entry jobs can barely afford their own upkeep. Residents and citizens who live in the UK are at a better position when it comes to health care because anyone who is a citizen in the UK will receive health care regardless of the income level. Private companies that own most of the insurance industry in the US are basically widening the gap between the rich and the poor. In UK care is often given free of charge at the point of rescue. This means that health care in the UK is only provided when needed and it is free rather than when one is able to pay or has been insured. Health care in the UK is universal. Everyone within UK can access health care regardless of disability, ethnicity and gender. Health care in the UK is also comprehensive and this is a good factor for residents in the UK because health care will be provided regardless of the patient’s condition. Jennings et al. (1994) observed that the gap between the rich and poor is wider in the US than in the UK because of policies that deny residents their rights to health and also enslave citizens through health care debt. People who can afford health care in the US get the utmost care they require and doctors work for longer hours to make sure these patients are treated and recover well. A larger percentage of debtors in the US owe health care insurance companies a lot of money. On the other side of the world, the UK always budgets for health care for its citizens. It has the best health care insurance policy because regardless of gender, income level, age or location, residents and visitors will get immediate health care in case of emergency without paying for it. Many UK residents are hopeful about their future because they know that they will have good health and their children will also be safe. Even though the type of care in UK is limited to the funds available, the demand for health care affects the amount of funds set aside from residents’ tax. An estimated 40 million Americans lack health care insurance cover (Greener, 2008). This means that a lot of people are uncertain about the future because they are unable to pay for their own health care. Greener (2008) further explains that UK’s health care is universal where all citizens in the UK have a right to health care based on need even when they cannot afford to pay. Weitz (2009) concluded that UK citizens rarely see health insurance forms, medical bills or any paperwork with regard to health care which is unlike what US residents are accustomed to on a daily basis with debt collectors giving bad financial advices to make sure debt is repaid. It is very unfortunate many people in the US will not receive health care (Johnson & Johnson, 2010). Conclusion Health care system in the UK is more appropriate because it has a standard health care for its entire citizen at no costs. Many people are able to live healthy lives for a longer period of time and they are certain about the future when health care is free. Health care system in the US is only meant for people who are wealthy or those who can afford to work in companies that pay for health care cover. Although the economy of the US improves due to private insurance industry, many people who live from paycheck to paycheck are in a bad position now and also in future if they cannot afford health care. Health care is one of the most important aspects in a country and if people cannot even afford the basics, social ills such as prostitution, kidnapping and rise of gangs will cripple the country for a long period of time. REFERENCES Aaron, Henry J. & Schwartz William B. (2005). Can we say no?: the challenge of rationing health care. Washington DC: Brookings Institution Press Fishburn, Alice & Nemecek Anthony (2005). Uni in the USA: The UK Guide to US Universities. UK: Lucas Publications Ltd. Flood, Colleen (2003). International Health Care Reform. UK: Routledge Gallup, Alec M., & Newport, Frank (2004). The Gallup poll: public opinion 2004. 4501 Forbes Blvd., Suite 200: Rowman & Littlefield Gottret, Pablo Enrique & Schieber, George (2006). Health financing revisited: a practitioner's guide, Volume 434. Washington DC: World Bank Publications Greener, Ian (2008). Healthcare in the UK: Understanding Continuity and Change. UK: The Policy Press. Haley, Barbara A. & Deevey Brian (1997). American health care in transition: a guide to the literature. Washington DC: Greenwood Publishing Group. Jennings James, Monroe William, Trotter Institute, Boston Foundation's Persistent Poverty (1994). Understanding the nature of poverty in urban America. University of Massachusetts: Greenwood Publishing Group. Johnson Nancy J. & Johnson Lane P. (2010). The Care of the Uninsured in America. New York: Springer. Shippey, Karla C. & Auerbach International (1995). USA business: the portable encyclopedia for doing business with the United States. New York: World Trade Press. Sorell, Tom (2008). Health care, ethics and insurance.UK: Routledge. Weitz, Rose (2009). The Sociology of Health, Illness, and Health Care. UK: Cencage Learning. Wilensky Harold L. (2002). Rich democracies: political economy, public policy, and performance. California: University California Press. Wilkinson, Greg (2007). Seminars in General Adult Psychiatry. Royal College of Psychiatrists UK: RCPsych Publications. 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