Response to Health Insurance Challenges in Private Sector

The assignment is a response to a discussion post about health insurance and the challenges faced by the healthcare industry. It begins with a precise definition of health insurance as an arrangement where patients subscribe to an insurance company to finance their healthcare. The post examines issues with private insurance companies, noting that high premiums often result in substandard services due to profit motives. However, it lacks explanation for why these firms do not provide better quality care despite higher payments. The main reason cited is the high cost of accessing quality medical services and the need for insurance companies to limit payouts based on patient contributions. Overall, the post provides valuable insights into the difficulties faced by private healthcare insurance, making it an interesting read.

Running Head: RESPONSE TO THE POST 1
Response to the Post
Name
College of Affiliation

RESPONSE TO THE POST 2
Response to the Post
In this post, my friend is talking about health insurance, and the challenges facing the
health industry. The post begins by the definition of health insurance, and he defines it as a
method ion which insurance companies seek to offset and finance the healthcare of their patients.
However, it is not for free, because the patient has to subscribe to an insurance firm, and pay
monthly or annual fee for the health care insurance services. From this argument, it is possible to
denote that the post does a good job in defining health care insurance: the definition is precise
and to the point.
Moreover, the post examines the weaknesses of private insurance companies. From this
post, we are able to learn that patients normally pay a huge amount of money to private insurance
firms, only to receive substandard medical services. Nonetheless, the post does not explain the
reasons why these private medical insurance firms do not sponsor or pay for quality medical
services, (Folland, Goodman & Stano, 2016). The major reason is the fact that the cost of
accessing quality medical services is high. Note that, insurance companies have an aim of
making profits; thus, they will always be restricted to paying medical bills based on the amount
of premium that a patient contributed. This is the reason why people who pay high amount of
premiums are able to have an access to better medical services.
Finally, the post provides important insights on private healthcare insurance and the
various challenges that the industry passes through. It was therefore interesting and fun to read it.

RESPONSE TO THE POST 3
References
Folland, S., Goodman, A. C., & Stano, M. (2016). The Economics of Health and Health Care:
Pearson International Edition. Routledge.