Argumentative Essay: Why Do People Buy Health Insurance?

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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
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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

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