Question

{flow of funds} Why is the development of a middle class a precondition for the development of medical insurance? Why is insurance necessary for the development of a modern, high-technology medical care system?

Answer 1

Medical insurance is the amount of coverage that is provided to the patients for various health issues and diseases. Insurance is usually purchased on a periodic basis usually annual, to cover for the period for any medical expenses incurred and come under the purview of the insurance policy. Hence, before purchasing an insurance policy, it is important that the individual understands the areas for which the coverage is offered. Middle class contribute to the majority of population in America and spends the highest amount on medical expenses. Hence, the development of a middle class is a precondition for the development of medical insurance.

Most of the employees working for an organization are offered insurance by the firm as a part of benefits. Also, the government sponsored medical insurance schemes like medicare, medicaid etc. offers coverage to a wide range of diseases for certain target groups. Insurance has thus become necessary for the development of a modern, high-technology and efficient medical care system as it offers an automated payment system, an efficient and hassle-free treatment process, a cost effective care etc.