The Importance of the Health Insurance in the U. S. Health Care System

The United States is famous around the world for many things, such as a producer of culture, and the country’s film industry is unrivaled in terms of revenue and influence. However, the health care system is unique among industrial countries. One important difference that makes the health care system dissimilar between countries is how people pay for it. In America, most people have health insurance that helps them pay for their medical bills. “Health insurance is a contract under which buyer agrees to make payments, or premiums, in exchange for the provider agreeing to pay some or all the buyer’s medical bills”.

Health insurance in America is diverse. There are two main kinds of insurance: public health care coverage and private health care coverage Public health care coverage is a program providing the primary source of coverage for most seniors and also low-income families who meet certain eligibility requirements.

Medicare, Medicaid, and SCHIP, for instance, are very popular. Medicare is a federal social insurance program for seniors, who generally aged 65 and over), and certain disabled individuals.

Medicaid is funded jointly by the federal government and states but administered at the state level. It covers certain very low-income children and their families, SCHIP is also a federal-state partnership that serves certain children and families who do not qualify for Medicaid but who cannot afford private coverage. There are some other public programs that include military health benefits provided through TRICARE and the Veterans Health Administration and benefits provided through the Indian Health Service.

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If public insurance is for low-income people. private health care insurance is opposite. Private health insurance may be purchased on a group basis, for instance, by a firm to cover its employees or purchased by individual consumers. Most Americans who have private insurance receive it through their employers. Similar to public coverage, private health care also have many types. Fee-for-service is a system under which doctors and hospitals receive payment for each service they provide. Blue Cross Blue Shield Association is a federation of 38 separate health insurance organizations and companies in the United States.

They also act as administrators of Medicare in many states or regions of the U.S., and provide coverage to state government employees as well as to federal government employees under a nationwide option of the Federal Employees Health Benefits Plan. A health maintenance organization (HMO) is a type of managed care organization (MCO) that provides a form of health care coverage that is fulfilled through hospitals, doctors, and other providers with which the HMO has a contract. Even though health insurance is very important, in 2012, about 16 percent of people were not cover. Their lack of insurance is because their income are low, and they think that they cannot afford for private health insurance. As mentioned, the government has many programs for low-income people. However, some people don’t qualify for it.