Advantages And Disadvantages Of Health Insurance

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RESULTS In the article, Economic Research on Direct-Purchased Health Insurance: New Models For Real Health Care Reform Linda Gorman (2009) describes the history of direct health care and how it all started. Gorman (2009) also explains that after a Great Depression took place in 1929, The American Hospital had created Blue Cross which gave individuals benefit plans. This article also talks about the advantages of direct health insurance. Goodman (2009) states “ It controls health spending by pricing individual risk, encourages substantial variation… to accomodate differences in individual risk tolerance, and provide incentives for cost minimization”. This article also describes how this type of insurance makes people care more about their…show more content…
This article was very interesting to read because it doesn’t want readers to feel that their type of health insurance is perfect, but describes what is good and bad for this specific health insurance. This article explains that direct purchase insurance can be very useful for employees because of the coverages they will receive. Pauley, Peercy, and Herring (2015) explain three types of advantages that individual health insurance has “The first benefit is that everyone can get the type of coverage that they want for themselves while group insurance has less choices. Another advantage would be that there is no guarantee that the employer is choosing the type of insurance that the individual wanted. Finally, another advantage is that the individuals doesn’t have to worry about their plans if they decide to change jobs because they are paying for it not their job”(31). Pauley, Peercy, and Herring (2015) also state that there disadvantages to individual private insurance “ First, administrative costs are higher… Second, individual insurances provide less risk pooling or premium”(31-32). Overall, this source was definitely very helpful because it covers why direct purchased insurance can be used as an advantage or disadvantage. This source also focuses on the premiums, benefits, and expenses of direct-purchased health insurance. This source relates to the newspaper article The Consequence of “No” because they both focus on the

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