Abstract
Healthcare is an expensive need, especially in the modern healthcare system. It cannot, therefore, be financed by individuals themselves due to the difference between, individual’s resources and the needs. In this regard funding the healthcare needs be done by pooling resources together and this can be done in a number of ways: family, voluntary association, private insurance, government health coverage programs and so on. This enables a large group of people afford the essential need of healthcare.
Healthcare Finance
Healthcare is an expensive need especially in the modern healthcare system. It cannot therefore be financed by individuals themselves due to the difference between, individual’s resources and the needs. . In this regard funding the healthcare needs be done by pooling resources together and this can be done in a number of ways: family, voluntary association, private insurance, government health coverage programs and so on.
Insurance Premiums are obtained primarily from the workplace as an employee’s benefit from the employer or as a deduction from the employee’s wage. The employer therefore determines how much they would pay for the insurance plan. When the plan increases the employee will have to pay from their own pocket, incurring the extra cost.
When we look at public health insurance for example Medicaid, whose main service is to provide health coverage to the low-income earners, those living with disabilities, elderly and so on. This means inclusivity, affordability and equity. These social goals are supposed to cushion the burden of high premiums and inadequate coverage to the vulnerable. It should therefore be the primary goals of such a company to maintain and fulfil such goals.
References
Hicks, L. L. (2014). Economics of Health and Medical Care. Burlington: Jones & Bartlett, LLC.