Argumentative Essay: Why Do People Buy Health Insurance?

Improved Essays
Why do people buy health insurance? Most people buy insurance because they would rather pay a small premium than have the risk of getting sick and having to pay large medical bills. Consumers may purchase additional health care services only because they have insurance so insurance companies implemented co payments and managed care. The implementation of co pays and managed care was designed to keep the consumer from receiving additional services that may not be necessary or are of low value. Most people purchase insurance to have a safety net when they become sick. Insurance companies, in order to make a profit transfer the insurance premiums from those who are healthy and do not need services to those who are ill. This in theory allows the sick to have procedures that may save their lives that otherwise they may not have been able to afford.

The factors that might influence decisions to purchase or not purchase health care insurance depend on the consumers ability to process and navigate through the overwhelming amount of choices they are offered. Commercial health insurance typically focuses on a business to business approach. Insurers offer plans through employers that allows the employer to choose
…show more content…
Traditionally the insured tend to be those with higher levels of education and those who are more health-conscious. Health insurance leads to a reduction in the price of health care so the insured tend to use health care more than those that would pay out of pocket. For example, individuals who would not use medical services at uninsured rates will tend to use it if they have insurance. An adverse effect in the connection between insurance and health care is that when individuals become insured they may not be as cautious about their health and participate in unhealthy behaviors that will lead to more health problems that will require additional health

Related Documents

  • Superior Essays

    The healthcare system is overpriced, point blank. The people who can afford it have to be rolling in dough. Yet, others go without even the most basic care such as an appointment to the doctor’s office. The reason being is that the cost of healthcare is too damn high! They suffer with the nighttime, sniffling, sneezing, aching, coughing, stuffy-headed, fever, symptoms of sickness.…

    • 1191 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Health care doesn 't even cover the whole medical expenses so that 's still more you have to pay. So why does health care cost so much when it really shouldn 't? We live in a world where some people can 't afford to keep a decent meal on the table.…

    • 753 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The Affordable Care Act (ACA) has its ups and downs just like any other health insurance company out there. Is the act really affordable? The title of the act claims that it is as you can see when saying or reading. Do we know for sure or agree on this though? Does the tittle lie to us or is it just the name it needs.…

    • 1809 Words
    • 8 Pages
    Improved Essays
  • Great Essays

    With health insurance it gives people the ability to pay for the services but also give the consumers and providers to price the service high. Consumer behavior leads to a higher use of health care services when the services are being paid for by the insurance. This is known as moral hazard. If the consumers had to pay out of pocket then many of the services would not be used at all. This is known as provider-induced demand.…

    • 1225 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Insurance companies: Insurance companies are expected to come in a pay for the treatment of all medical problems, often that could have been treated at a much earlier state of possibly prevent with proactive health care, increased public education…

    • 123 Words
    • 1 Pages
    Improved Essays
  • Improved Essays

    In the United States many people don’t have health insurance. Health care reform is one of the top argument in our country. Most people see having a health insurance lead to a healthier life, but most of the people cannot afford it. Increasing price of doctor bills and prescription drugs causes to millions of people unable to get health coverage. People lost their jobs and houses because of the high price they have to pay for their illness.…

    • 717 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Before the Affordable Care Act, there were many different health insurance companies, each with their own payment plans. These payment plans were difficult for companies, businesses, and individuals. The companies and businesses did not necessarily provide health insurance to their employees. People…

    • 1622 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    ICD-9: A Case Study

    • 714 Words
    • 3 Pages

    They feel as though it needs to be more of a market based approach. According to Frakt, A., 2010, consumer-directed health plan and are at the center of this concept. Other industries feel that if you spend more of your own money that the prices will become lower in the end. This is unrealistic when it comes to healthcare.…

    • 714 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Uninsured Health Care

    • 1298 Words
    • 6 Pages

    A high-rate of Americans living without health insurance coverage in one of the wealthiest countries in the world is a major social issue in the United States. Sered Fernandopulle and Ebrary research showed that there are over 40 million uninsured Americans that are falling through the cracks of the health care system. The research is investigated to determine how having no health insurance affects the lives of the millions of Americans. There is an extremely high-rate of adults and children that suffer from being uninsured due to inadequate and inaccessible medical care. Uninsured Americans’ lives are greatly being impacted, by not having no health insurance, according to interviews with 120 uninsured men and women and several medical providers,…

    • 1298 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    Benefits Of Obama Care

    • 1460 Words
    • 6 Pages

    “The test of our progress is not whether we add more to abundance of those who have much; it whether we provide enough for those who have too little.”- President Franklin Roosevelt. The government system was created by the founding fathers to prevent anarchy. This system has helped the country run since its creation. Unfortunately, there are time in which democracy comes to a halt due to the disagreements between the government parties in the house of congress and the House of Representatives.…

    • 1460 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Health care affects us all whether we like it or not. Health care is a very controversial topic because many are not happy with the new “Obama care” coverage due to the fact that it requires state funding. Some tax payers do not feel they should be responsible for paying for people who need health coverage. Individuals that go long periods of time without regular check-ups are at risk for medical conditions that require serious extensive medical treatment. Personally, I believe that everyone should have affordable health care coverage.…

    • 703 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Assignment On ACA

    • 894 Words
    • 4 Pages

    1 John Xuan Dinh RMI 2101 Prof. Wilkins Fall 2016 Homework Assignment 5 20 Points A. What is the ACA? Explain in detail the purpose of the law and how it is intended to operate. What are the key features of the ACA?…

    • 894 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The right to affordable health care is as sacrosanct as the right to be free, if not more. The most important issue is making medical care a right for everyone at an affordable price. American health care has an insurance-based system; thus, to get affordable and efficient medical help, you should be insured. Currently, there are about 44 million uninsured Americans. According to Elizabeth Bradley, the author of the book The American Health Care Paradox, the paradox of today’s system is that “United States spends so much on health care but continues to lag behind in health outcomes” (33).…

    • 1634 Words
    • 7 Pages
    Great Essays
  • Decent Essays

    The government should do some reform to provide insurance to everybody. The all- payer system should be adopted by the government. This system diminishes the cost of insurance and people could be able to afford it and also improve their health.3 For example, in Europeans countries they use this system and it functions correctly and people receive all the care they need. Also people think that the more they are uninsured, the more it is costly, because when they are sick they cannot afford the hospital price, and they take the over the counter drugs, and when their disease get worse, they need more serious care, and this cost more to the…

    • 477 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Health insurance pays for medical and surgical expenses for the people that are insured. Millions of Americans participate in the game of insurance. By investing money in insurance, they hope to stay in the game of life a little longer. Although, nothing catastrophic may happen to you, most people pay the money to feel secure and for “just in case” circumstances. Health insurance is mostly for the dying.…

    • 1114 Words
    • 5 Pages
    Improved Essays