Question

What are the reasons for government involvement in both public and private health care?

Why do people purchase health insurance?

Answer 1

The Affordable Care Act (ACA), introduced in 2010, created "shared responsibility" for ensuring that all Americans have access to affordable and high-quality health insurance between government, employers, and individuals. Health coverage, however, remains inconsistent, with multiple public and private outlets as well as wide disparities in insurance rates across the U.S. population. The Medicare and Medicaid Services Centers (CMS) manage Medicare, a federal program for persons 65 and older and some disabled people, and operate in collaboration with state governments to administer both Medicaid and the Children's Health Insurance Program (CHIP)

Private insurance is mostly regulated at the level of the Government. State and federally operated health insurance marketplaces were established in 2014 to provide greater access to private insurance coverage, including premium income-based discounts for low-and middle-income people. Furthermore, states have been given the option to engage in a federally subsidized Medicaid eligibility extension.

People purchase Health insurance due to the below reasons

Lifestyle change: There are plenty of reasons to have a health insurance policy in place. The tectonic shift in our lifestyle has made us more prone to a variety of health conditions. The risk of developing health problems has risen with driving, hectic work schedules, poor eating habits, food quality and increasing levels of pollution.

Medical costs rise: Medical costs have recently risen dramatically. So consumers end up spending their savings in the event of a medical emergency, which will take a toll on their future plans. Reports highlight that when it comes to addressing health emergencies, Indians rely primarily on their own savings.

Coverage of pre-and post-hospitalization expenses: not only the mainstream medical costs, but also the costs of OPD (out-patient department) expenses, diagnostic tests have also increased in recent times, making it even more vital for one to purchase health insurance. It is important that not only the hospitalization costs are covered by the insurance procedures, but also the costs incurred for OPD and diagnostic testing before and after a specified period as required by the policy.