Disadvantages Of Health Insurance

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The thought process that is involved with choosing an insurance plan can range from simple to very complex. So many factors can affect how an individual or a family chooses what type of coverage they may need. Some of these factors can include present illnesses, present state of health, work or personal habits and environment, age of self or family members and types of activities that the individual or family members are involved in.
The reason health insurance exists is because of the unknown. The unknown about who will become injured or ill and at what time and to what extent this event will be. It is a given that there will be thousands of people across the U.S. every day that will need to seek out healthcare in some form or another and will need help from health insurance to pay for that care. This fact makes the choice involved with health insurance about risk.
According to Moriates, Arora, and Shah (2015), “At its most basic level, all insurance is designed to mitigate risk of financial catastrophe. Insurance ideally spreads this predictable population-level risk among the entire group so that the unlucky afflicted individuals can afford to have these vital therapies when they need it. The idea is that lifesaving therapy should not necessarily deplete one’s life savings. One of the great challenges in …show more content…

Approximately one half of all of the healthcare expenses in the United States are paid for through the states or the federal government in the form of Medicaid or Medicare (Mosser and Begun, 2014). According to Bodenheimer and Grumbach (2012), “Medicare is a social insurance program, requiring individuals or families to have made social security contributions to gain eligibility to the plan. Medicaid, in contrast, is a public assistance program that does not require recipients to make contributions but instead is financed from general tax

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