Health Insurance: Public Provision Report Analysis and Discussion

This report examines the public provision of health insurance, exploring arguments for and against it. It discusses the benefits of health insurance, such as reduced out-of-pocket expenses and improved access to healthcare, particularly for the elderly population. The report also highlights the limitations, including the scope of coverage and potential for rising service costs. It references studies on the impact of health insurance on health outcomes and financial burdens, and concludes that public provision has two aspects of outcomes that can result in deliveries of health services, including the quality of care to the people.

Running head: HEALTH ECONOMY POLICY MODEL
HEALTH INSURANCE
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1HEALTH INSURANCE
Introduction
Health insurance covers the expenses of multiple medicals bills such as surgical,
emergency cases, or any dental expenses and any other general health issue. Health insurance
act as a beneficial factor for the people who seek the health services. This paper intends to
understand the controversial topic that is the public provision of health insurance.
Arguments for public provision of Health Insurance
The public health insurance will benefit multiple individuals to avail the health care
services. The first argument for the provision of health insurance is the increase in the aging
population (Chenget al., 2015). Multiple health insurance focuses on the elderly population
for availing and accessing health care facilities with the reimbursing against multiple critical
diseases or any illness. Thus, it will also improve the welfare of the elder population.
Another major argument in support of health insurance is that it reduces the out of
pocket expenditure of an individual (Aryeeteyet al., 2016). Patients can claim cashless
benefits with the help of health insurance that includes pharmaceutical expenses or
hospitalization expenses, and many others vary accordingly to the specific health insurance.
Many health insurance that are funded by government such as Medicare or Medicaid help the
vulnerable group to avail the healthcare.
Arguments against the public provision of Health Insurance
The major argument against the health insurance is that not all the medical
complications or diseases come under single health insurance. Every health insurance covers
a specific list of illnesses or diseases. Lack of transparency in the health insurance schemes
and services brings the major drawback to the health insurance.

2HEALTH INSURANCE
Another major argument against health insurance is the rising cost of the services.
Many health insurance schemes provide limited reimbursement to healthcare providers or
professionals for delivering services. There is a rise in pricing of service, equipment or any
element increases due to an increase in demand for services. Therefore, lower reimbursement
results in limiting the delivery of service with a lesser quality of care. That also results in
another consequence that patients with lesser critical complications are being taken care of
later and not be taken as an urgent delivery of services. Therefore, according to Donabedian
(2020), unless there is no monitoring from the external forces such practice in health
insurance can bring disparity in delivering the high quality care to the people.
Conclusion
From the above discussion, it can be concluded that the public provision of health
insurance has two aspects of outcomes that can result in deliveries of health services. Health
insurance reduces the out of pocket expenditure and also can influence the quality of care to
the people.

3HEALTH INSURANCE
References
Aryeetey, G. C., Westeneng, J., Spaan, E., Jehu-Appiah, C., Agyepong, I. A., & Baltussen, R.
(2016). Can health insurance protect against out-of-pocket and catastrophic
expenditures and also support poverty reduction? Evidence from Ghana’s National
Health Insurance Scheme. International journal for equity in health, 15(1), 116.
Cheng, L., Liu, H., Zhang, Y., Shen, K., & Zeng, Y. (2015). The impact of health insurance
on health outcomes and spending of the elderly: evidence from China's new
cooperative medical scheme. Health economics, 24(6), 672-691.
Donabedian, A. (2020). Issues in national health insurance. Retrieved 11 February 2020,
from https://www.c/pmc/articles/PMC1653279/