Question

What is the difference between health insurance inequality and health care inequality?

Answer 1

Health care inequality is when one group of people in an economy are in much worse health than another group. Here in the United States, health inequality is related to income inequality. The higher your income, the better your health. The reason behind this is that America has a health care system that relies on private health insurance. Research says that Low-income adults are more likely to have trouble with the activities of daily living. Certain chronic illness may make them too sick to eat, bathe, or dress without help. Their children are more likely to be obese and have elevated blood lead levels than those in high-income families.

Health Insurance inequality is when the working poor doesn't qualify for high medical standards due to their low income. They can receive a subsidy under certain government schemes, but often those policies only cover certain hospitals and doctors' practices. Again, in rural areas, the covered medical services may not be sufficient. Health insurance companies have been increasing patients' medical costs by raising deductibles and co-payments. So this is giving rise to a higher rate of health insurance plans which are affordable to the financially sound category in the economy. Health insurance inequality is really a part of healthcare inequality.

Health insurance inequality, when understood, allows policyholders the ability to protect themselves from unpredictable future health care costs at a reasonable cost benefitting the private insurance establishments. It provides an affordable way for people to meet unexpected health care costs when and if they arise. Private purchase of insurance at heavy prices in a competitive phase of the economy gives individuals incentives to lower their health risks through better diet, exercise, and care, while insurers compete through lower prices and better service. Due to unavoidable transactions costs and necessary profits for insurers, insurance coverage of routine health care can only cause costs to rise. Thus, the only reason to do it is so that some get free care or health care paid for by others. But recipients of health care paid by others or free health care have little or no economic incentive to lower their risks and thus reduce health care costs.