Question

Question 3 in 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."

Rycroft, Robert S. 2018. Economics of Inequality, Discrimination, Poverty, and Mobility, 2nd Ed. NY: Routledge

Answer 1

Benefits

• Changing lifestyles have exposed people to a plethora of diseases. Pollution, hectic work schedules, wrong eating habits - all have increased the risk of developing health related ailments these days.
• Medical/Pharma/Healthcare is becoming increasingly expensive.In case of a medical emergency, people end up spending their savings, which takes a toll on their future plans. OPD expenses, diagnostic tests etc has made it more vital for people to get health insurance.
• It is difficult for a family to quickly arrange for huge amounts of money required in medical treatments. Most of the savings of a family are in the form of fixed assets, which cannot be liquidated quickly.

Costs/ Negatives

• Cost is one of the main disadvantages. Health care coverage for families may cause an added financial burden.
• Many times one can avail for the healthcare benefits only after a minimum months waiting period which can even be as long as 18 months in case of some serious illnesses.
• Many times the medical coverage does not sufficiently cover the cost of tests, surgeries and procedures that need to be done.
• Pre-existing conditions are considered a part of approval process and at times can be denied of the coverage.