text: Insurance and Demand for Healthcare - Term Paper
  Submitted By sangreene
  This assignment will show how having health insurance or not having health insurance determines if a person will receive laser eye surgery. This assignment will also show how the medical market differs from other markets and how this contributes to the rise in health care costs. Finally, the assignment will show how a small business owner whose group insurance policy costs continue to rise may make decisions to halt increases to his insurance cost.
  I would not get the laser surgery at the cost of $500.00 per eye. The procedure is considered to be cosmetic and not a medical need or emergency. This would make the surgery elective and a choice. Since my nearsightedness does not interfere with my job performance and also is not a detrimental factor in getting a job, I would not see a need to spend that amount of money. Even though odds of the surgery correcting my vision are very high, due to the surgery not being covered by my health insurance, I could not afford the out of pocket expense for the procedure. Such a response also reflects the reality that the moral hazard is low or non-existent. This is due to the fact that the procedures would not protect me from a disease or debilitating health condition (Folland, Goodman & Stano, 2010, pp. 155-156). If my health insurance covers 80% of the cost of surgery, I would have the surgery. This would mean that I would only have to pay a total of $200.00, as my out of pocket costs would be $100.00 per eye. The insurance company would pay $800.00. Coinsurance allows for the insurance company and the person insured to share the costs of the medical procedure. The insurance company paying the subsidy of 80% of the costs does not expose the person insured to the actual cost of the surgery. This demonstrates that individuals will decide to get more medical procedures especially if they have health…...
  ...claims than at any point in history from patients and tort lawyers. From increased demands by malpractice insurance carriers to higher standards and quality of care criteria, medical professionals are under extreme scrutiny which makes the art of practicing medicine very difficult. As pressure continues to mount in America both by politicians and social groups how are demanding a restructuring and overhaul of the current system, medical professionals will have to be very diligent about meeting the new standards expected in healthcare of they will face lawsuits and tort actions that could destroy their careers (Qazi, 2012). The healthcare debate in the United States has been dominating the industry since President Obama passed key legislation that will forever change the American medical system. Arguments against healthcare reform stem largely from the provisions and laws that are being proposed by Obamacare. The restructured proposals have drawn many opponents, especially in the healthcare and insurance industry. Primarily, the argumentative claim is that the costs to practice medicine and insure all patients will not be sustainable. Additionally, the increase in the amount of patients that will flood the system will demand an increase in medical insurance premium costs, drive down competition, and lower the overall quality of care that Americans are used to receiving. For private physicians, the demands placed on their practices to meet and maintain the new laws and......
  ...Income, Risk, and Consumer Demand for Healthcare Why is the depreciation of capital good a cost of society? In what ways does a person's health depreciate? Depreciation is the way to track the wear and tear of assets over time. Now, only those assets which are defined as being capital goods can depreciate. The capital goods will provide value or generate income for the company over a period of time normally greater than one year. The depreciation of capital goods requires knowing three different variables: the original cost of the asset, the salvage value of the asset and the life expectancy of the asset. All three of these variables help the organizations or companies to determine the amount to write policies off against income on an annual basis. Based on that, the cost for the society for the use or availability of this service or technology will be established. So the investment for example on a new instrument or new technology will be recuperated thru the years of use as income, and this income would be obtained from the users (customers). At the end, the company will obtain the total investment plus some income from that investment if used by customers to obtain good health. The health is treated as a stock which degrades over time in the absence of "investments" in health, so that health is viewed as a sort of capital. Unfortunately the depreciation rate increases with age similar to any instrument or technology. It is more difficult to achieve......
  ...Cameron 1 Issues on Healthcare Insurance Although the United States is dealing with the issue of healthcare insurance, the president should consider ways to avoid letting the needy families suffer because there are children and adults in need of healthcare insurance. Healthcare coverage insurance is a way of method to apply for medical coverage when you are sick, has an injury or to help use for preventative health measures. Medicaid is a form of health insurance coverage that is provided to most individual in most states whom is eligible for it. It provides coverage to a many low-income families. An important issue that is going on in this day and time is that universal health insurance coverage will have to be mandated for everyone, by way of method through private insurance, through state or by means of your employer. By means of having your own insurance coverage will provide for a lot families to make their own informed decision about their health coverage. Healthcare coverage will be expanding and have affordable coverage for lower-income families in the upcoming future. There a variety forms of healthcare coverage which is available out there for the old, young and disable. There are also forms of insurance for the rich (high class), middle class and the low income class. Just to name a few are: Medicaid, which is provide through federally-funds, Medicare which provides coverage to people over the age of 65 and those with disabilities. Health Saving Account and...
  ... Today, consumers face a baffling health insurance marketplace, especially if they buy insurance on their own. Americans find it all but impossible to compare health insurance policies on an "apples-to-apples" basis because the policies are written in legalese and the terms of coverage are so varied. As lawmakers consider comprehensive health care reform, they have an opportunity to manage the way we "shop" for health insurance. Recommendations include new consumer-friendly rules for the health insurance marketplace. These rules require clear and consistent definitions of insurance terms, standardized health plan provisions, new health plan disclosure forms, unbiased enrollment assistance and rigorous enforcement at the state and national levels (Healthy Policy Brief, 2009). There is a more improved way to seek health insurance. We need a health insurance marketplace which has consumer protections commensurate with the importance of the purchase, new rules for insurance plan disclosure that considers real consumer decision-making behavior and less variation in health plan design so that consumers can easily compare benefits and costs. In order to create this new marketplace, there is a proposal of five specific changes that must be created: a manageable number of plan choices, standardized benefit designs, standardized consumer-friendly health plan materials, decision aids and a strong federal oversight body. Consumers should have a manageable number of "good" health plan...
  ...1st Prize Winner – Shri Devaraj Belke Mahadeva, NIA, Pune Taken from IRDA INCREASING INSURANCE PENETRATION IN INDIA Insurance as an industry has secured a vital position in the development of the nation's economy. An efficient insurance market is essential to achieve integration into the global economy and sustainable strong economic growth. In conjunction with the forces of global consolidation, current advances in information technology and the potential of e-business mark the beginning of a veritable efficiency revolution in the insurance industry. One of insurance's key roles is safeguarding the financial health of small and medium-sized enterprises. In addition to the protection provided by social security systems, insurance cover is crucial for people to insure themselves against inability to work, set aside money for retirement or protect themselves against the loss of their assets. Insurance reduces the investment risk faced by companies and the state. Many companies find it far more expensive, if not impossible, to take out a loan without purchasing the requisite insurance protection. Insured, thereby reduces the costs of raising the capital they need. By reducing investment risk, insurance can also encourage companies to think more long term and increase their risk tolerance. A lot of investments in new production facilities and newly founded companies would never happen if every company was required to have the necessary financial means to make......