Question

The United States is the land of the overinsured, the underinsured, and the uninsured. What do these concepts mean? Why might this comment be true? Economic factors and issues must be explained

Answer 1

Health plays very important role in any ny nation's economy because if the persons of any country or employees of any company are not healthy how would they work for their country, their company. For that they should have a good health and it is not possible to get a good treatment for every person because of their financial conditions , so for their welfare there are insurance policies provided to them by government , by their companies. Before discussing these in America we will discuss what is overinsured, underinsured and uninsured ?

OVERINSURED : Overinsured is the condition where a person is insured it means he have insurance but he have bought so much coverage and which leads to exceed the actual cash value of the risk.

UNDERINSURED : This covers those persons who have had health insurance for a full year but high deductions or other expenses which are not affordable to them according to their income will be considered as underinsured an these person's limits are not high enough to even claim full expenses.

UNINSURED : This category defines those persons who are not protected by any insurance policy. They cannot receive any benefit , which is provided to them by government or any other employer for their welfare and which are provided to them who cannot meet financial or categorical criteria.

OVERINSURED , UNDERINSURED AND UNINSURED IN US :

In United States there are so many people who have insurance and they are overinsured as well because of their uninsureble expenses.There are so many small expenses and their occurrence probability is very high such as : Routine dental examination , replacement of eyeglasses . It will cost low if it would buy directly, it cost more if it would be buy through insurance. And it is very clear that so many insurers provides this because this is some way to reduce their tax value. Sometimes Insurance will cover only those expenses which have very limited coverage or their occurrence is very rare. Consumers are underinsured because risk of Castrotrophic is present here. It is because those employees who get health insurance benefits had high income it they will be entitled with high subsidies and people with low income have not any subsidies . So these comments are true.

ECONOMIC FACTORS AND ISSUES : US spends so much on health care but it outweighs it's implication when it fails to achieve its goals in healthcare. So many persons are not able to take or not able to receive benefits because there are so many uninsured people and government will try to give benefits to all uninsured people it will be a hidden cost which leads to drain of government's budget. In US Medicare programme is provided for those who have poor health but it becomes costly after enrolling into medicare. And now a days health insurance has been become more difficult for business and company because it puts companies into competitive disadvantage economy globally.