Question

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 3 from chapter 13:

"One idea to extend health insurance to all Americans is to require Americans to purchase a health insurance policy. People of limited means would have their purchase of insurance subsidized. Discuss the benefits and costs of requiring people to purchase health insurance."

Answer 1

To encourage the people of America to buy the health insurance they should be made aware about the various benefits of the health insurance they will enjoy so that they are convinced to purchase the health insurance.

The health insurance provides the security to the insured against the health problems and provides him with the means and the funding to tackle any health related problems without creating extra burden on the members of the family. The health insurance provides the security of the funding problems against the payment of the small premiums to the health insurance companies.

These health insurance companies provide the funding in case of any health problems and all the expenses related to the hospital and the treatment are covered.

The premium paid for the health insurance is the only cost the insured person has to pay for getting insured.

On the other hand other than the direct health expense benefits the insured also gets many tax rebates and deductions due to which his disposable income increases. Hence there are many benefits with very low costs.

This also leads to the mobilising of the savings of the individuals.