Importance of Health Insurance: Benefits, Impacts, and Penalties
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This article discusses the importance of health insurance, its benefits, impacts, and penalties. It covers the Affordable Care Act, financial advantages, and health impacts of being uninsured. It also explains the health insurance penalty and the recent changes in the law.
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INTRODUCTION Health insurance is an insurance service that provides medical and surgical expenditures for an insured person. By appraising the whole risk ofhealthcareandhealth systemexpenditures over the risk pool, an insured person can create a monotonous finance model, like a monthly premium to deliver the money to pay for the healthcare aids stated in the insurance contract (Finkelstein, Mahoney & Notowidigdo, 2018). HEALTH IMPACTS Uninsured people do not get proper and adequate access to health care compared to the people who have health insurance. In a report, it was seen that one in every six people who did not have insurance were living without proper medical care due to cost. Differentarticlesrepetitivelyindicatedthatthe people who did not have insurance are less likely to receiveappropriatemedicalandpreventive treatments for severe health conditions and chronic diseases (Garfield, Damico & Orgera, 2016). Uninsuredpeoplegenerallyreceiveexcessive medical bills when they seek medical care. In the report,itwasstatedthatthepopulationof nonelderly adults who did not get their insurance wereovertwicecomparedtotheinsured counterparts to have had problems paying medical bills in the past 12 months. These medical bills can quickly turn into medical debt since most of the nonelderly adults who did not get their insurance havemoderateincomesandhavelittlesavings (Garfield, Damico & Orgera, 2016). “Uninsured during the year” comprise of the population who were not insured duringtimeofsurveyorhada limitation in coverage during the past 12 months. “Privatecoverage”comprisesof peoplewhowereregisteredforthe employer plans, marketplace plans, or plansboughtdirectlyoffofthe marketplaces (Gunja et al., 2017). AFFORDABLE CARE ACT This healthcare act was enacted on March 2010 (HealthCare.gov, 2019). The ACA consist of three important goals- To provide affordable health insurance toeverybody.Theactprovidesthe customers with subsidies, which reduce thecostforhouseholdsoffederal poverty stage with incomes in between 100 to 400 percent. EnhanceandpromotestheMedicaid programforindividualsoffederal poverty stage whose income are below 138 percent. Assistadvancedmedicalcare distributiontechniquesplannedto reducethecostsofhealthcare (HealthCare.gov, 2019).
HEALTH INSURANCE PENALTY Earlier according to the Affordable Care Act, people who did not have any health insurance had to pay penalties. However, a tax bill was passed by the Congress in the year 2017, which prescribed that the health insurance penalty should be eliminated. The new law was enacted in the year 2019 (Blumenthal, Abrams & Nuzum, 2015). As per the new rules, individuals can apply for a hardship exemption that will excuse them from taking a health insurance only if they (Blumenthal, Abrams & Nuzum, 2015): 1.Stay in a region where marketplace plans are not available. 2.Stay in a region where marketplace plans are sold by only one individual. 3.Cannot find a reasonable marketplace plan that does not covers abortion. 4.Till 2018, it was mandatory for individuals to pay a fee called Individual Shared Responsibility Payment when paying the federal taxes if they did not apply for health insurance. However, since the 2019 plan year, the Individual Shared Responsibility Payment has been removed. 5.Though, the states might consider state taxes from an individual if they do not have a health coverage, though the states wants an individual to have one (HealthCare.gov, 2019). CONCLUSION It is important for every family to have a health insurance since uninsured individuals receive few medical services compared to insured individuals. When an uninsured individual are affected by illness or any injury, they receive high health expenses compared to the income they receive. On median, uninsured females and their babies obtain less prenatal care and less costly perinatal facilities. Uninsured females are more probable to have bad results during childbirth than the insured females. It is important for an individual to purchase a healthcare insurance since medical care is very expensive in the private sector. During hospitalization, it can burn a hole in the individual's pocket and overturn their finances. FINANCIAL ADVANTAGES With the help of health insurance access to funds would be easy. An individual can go for treatment with the confidence that there won’t be any shortage of resources for the medical expenses(Wong et al., 2015). When a person owns a health insurance policy he will not be afraid of any illness that will make the person physically ill and financially short. This will put a positive effect on the person’s work and family life (Wong et al., 2015).
REFERENCE Blumenthal, D., Abrams, M., &Nuzum, R. (2015).The affordable care act at 5 years. Finkelstein,A.,Mahoney,N.,&Notowidigdo,M.J.(2018).Whatdoes(formal)health insurance do, and for whom?.Annual Review of Economics,10, 261-286. Garfield, R., Damico, A., &Orgera, K. (2016). The coverage gap: Uninsured poor adults in states that do not expand Medicaid.Kaiser Family Foundation. Gershon, R. (2017). Health Policy and the Tax Cuts and Jobs Act. Commonwealth Medicine Publications, 175. Gunja, M. Z., Collins, S. R., Blumenthal, D., Doty, M. M., & Beutel, S. (2017). How Medicaid Enrollees Fare Compared with Privately Insured and Uninsured Adults. HealthCare.gov.(2019).AffordableCareAct(ACA).Retrieved4October2019,from https://www.healthcare.gov/glossary/affordable-care-act/ HealthCare.gov. (2019). Individual Mandate Penalty You Pay If You Don't Have Health InsuranceCoverage.Retrieved4October2019,from https://www.healthcare.gov/fees/fee-for-not-being-covered/ Sommers, B., Gawande, A., & Baicker, K. (2017). Health Insurance Coverage and Health — What the Recent Evidence Tells Us.New England Journal of Medicine,377(6), 586- 593. Wong, C. A., Asch, D. A., Vinoya, C. M., Ford, C. A., Baker, T., Town, R., & Merchant, R. M. (2015).SeeinghealthinsuranceandHealthCare.govthroughtheeyesofyoung