Description of the Business Opportunity
Statics indicates that more than 47 million non-elderly American adults were uninsured in 2012. Among the reasons identified by the large population of uninsured individuals is low income. The low income implies that they have little disposable income, and therefore they spend a little on food and other daily survival necessities (Bailey, 2012). Sixty one percent of the respondents stated that they would seek insurance services if a company offered them at affordable costs that are relative to their income. Only 1.5% of the uninsured population perceived that they did not require insurance.
Similar to other industries in the food processing industry, poultry companies do not offer high wages for their employees (Finkelstein, et. al. 2012). Therefore, the workers cannot subscribe to the insurance services. Ninety eight percent of the uninsured adults perceive that insurance is necessary for accessing health services, and they admit that they need it. However, low wages hinder them from accessing the service (Davies, 2011). Insurance companies have a business opportunity to provide a customized insurance policy for the poultry firm workers (Creighton, 2012). The health insurance policy should be customized in order to cover the workers health under low wages. The insurance company can collect the premiums from the workers or from the employers.
Purpose of Investigation
Uninsured adults stand a higher chance of premature death with 25%
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Financial burdens greatly limit the system’s accessibility; however, many in the U.S. are unable to fully utilize either option. Census estimates from 1999 indicate that 43 million Americans live without health insurance even though 75 percent of them have a full-time job or live in a household with at least one member working full-time (Mueller, , 5) In addition to the totally uninsured, census estimates also reveal that approximately 42 million other people in the U.S. are underinsured. This means that they have some insurance, but are still unable to afford all of their needed prescriptions, tests, visits to physicians, or hospital
In addition to those who are unemployed, you also have the Americans that are employed and still uninsured. These Americans either choose not to have health insurance or they are still unable to afford it. I have been there, I had to choose more money on my paycheck over having health insurance. For most, being uninsured is not a choice, insurance is simply unaffordable. In an article on The Economic Impact Of The Uninsured it states that “eighty percent of uninsured people are employed, or live in a home where a family member is employed. Their plight has nothing to do with a slow economy” (Knowledge@Emory). More young Americans look at insurance as a luxury not a necessity. However, when the unknown happens then these young people are faced with an enormous
So why don’t these people get insurance? Well, as is so often quoted, “money makes the world go round.” When it comes to health insurance however, it is not the world, but only America that seems to have a problem with providing health care for a reasonable price to its citizens. 55 percent of uninsured people answered that the reason they are without the safety of insurance is the reason everyone expects--they cannot afford it (NRHA 1).
Money plays a huge role in access, therefore it is a vital issue to discuss. Within the current system, lack of money results in lack of health care, which leaves thousands of people without any health care coverage. Between 2001 and 2005, the number of people paying for health insurance increased 30%, however income only raised 3% (Health Care Problems). Adequate income is a necessity and unfortunately that is not present. According to the National Conference of State Legislatures, the average annual premium across the country is $16,000. Currently, the average annual income in the United States is $51,107. Mint Money Management suggests that about 4-6% of one’s total income should be spent on insurance, including life, disability, and health insurance. However, the averages in the United States show that the average person spends about 31% of their income on health insurance, which is not financially beneficial. When this rise in health insurance is not parallel to the inflation of income, innocent people are left without a method to achieve health care. There is a program for those who can’t afford health insurance out of pocket nor have access to it, and that is called Medicaid. Issues still exist with the program. There is only so much funding, which leaves many still uninsured. Additionally, people with Medicaid have difficulty
More and more people with medical insurance are relying on the health care system as new technologies and treatments become available. This leads to a grater number of claims for payment by insurance companies, the costs of which are passed back to health care consumers. The baby-boom generation is entering its peak health-care using period. Over eighty million Americans will turn 50 in the next 10 years. The cost of providing heath care for these individuals will be staggering
The cost of health insurance has changed drastically over the years as it has become more expensive. Depending on personal characteristic, the cost of health insurance may vary. For instance, as individuals grow older the more expensive it becomes. In this case, health insurance is more costly because “older individuals require more health care” therefore “the cost of providing health care is rising” (Madura &Atlantic, 2012). Not only does this affect the high cost of health insurance, but the number of individuals uninsured. As stated by Madura and Atlantic (2012), “about one in every five workers is uninsured” and has increased since then because health insurance has become unaffordable. As a result, individuals tend to seek health care elsewhere as they can no longer
Large populations of Americans are uninsured mainly because of the high cost of insurance. Majority of the uninsured are the low-income working families’. The adults represent a higher percentage of the uninsured than children. Before the law, you could be denied coverage or treatment because you had been sick in the past, be dropped mid-treatment for making a simple mistake on your application, hence, the Affordable Care Act was implemented into law on March 23, 2010 by President Barrack Obama to make sure that every American irrespective of their status will be insured and have full access to proper health care benefits, rights and protection(1). To understand the
Rising health insurance premiums have made healthcare unaffordable in the United States. Health insurance premiums in this country have undergone a steady rise over the past few years while incomes have remained the same. More than 50% of individuals with low incomes holding private insurance in the United States are unable to afford their healthcare costs (Collins, Gunja, Doty & Buetel, 2015). In addition, costs related to healthcare are equally unaffordable to 25% of working-age individuals who hold private health insurance policies (Collins et al., 2015). According to the Kaiser Family Foundation/Health Research and Educational Trust (Kaiser/HRET) survey on employer health benefits, employer-sponsored health insurance plans have also had moderate rises in premiums in 2013 for both individuals and family coverage (Claxton et al., 2013). While
In America, we not only have the problem of the non-insured but the under insured which causes just about as much problem as the underinsured. Each group has contributed to the vast growing cost of healthcare. Over the last decade or two, the amount of uninsured has risen due to the job market in the economy and the fact that most insurances are tied to employment, which is also a problem as the unemployment rate rises. The purpose of this paper is to explore this issue.
Even with some especial programs like ACA, a lot of people can’t afford for coverage due to extreme rate of poverty.”Cost still poses a major barrier to coverage for the uninsured. In 2015, 46% of uninsured adults said that the primary reason they were uninsured was because it was too expensive, making it the most common reason cited for being uninsured”(Key
One of the major social problems in the United States is the increasing number of uninsured people who are among the vulnerable populations in the America. In 2008, there were approximately 46 million of non-elderly Americans without health insurance including adults and children. While this population includes people from all age ranges, young adults account for a significant portion of these people since they are likely to be uninsured. Moreover, many uninsured individuals are in families with at least a single full-time worker as Hispanics excessively have the highest rates of the uninsured. However, the huge share of this population is white Americans as compared to people from other races.
Even with employer-sponsored programs and federal programs for those who qualify, many Americans are uninsured. Over 46 million Americans had no health insurance in 2006, and 86.7 million went without health insurance at some point in 2007 and 2008 (“Health Care Issues”). Why has the number of uninsured risen so drastically and why are employer-sponsored programs dwindling?
Most of the people who are uninsured are the working poor, which the overall costs of medical care can hurt them. By the means of doing their best, these people just can’t afford the insurance. Health care has become increasingly unaffordable for businesses and individuals. (Reese) Premiums grow several
With the rising number of uninsured Americans, health care has been a major issue in the United States. Due to “The Great Recession” and the growing number of Americans who found themselves unemployed, the number of uninsured Americans has rose from 46.6 million in 2005 to a record number of 50.7 million in 2010. Many of these uninsured again have lost their employee health insurance benefits or they made the decision to cut their health insurance just to cut back costs. The rising prices of health care have also been a concern over the last few years. With new medical technology and increasing prices of prescription drugs, it has become hard for one particular group to keep up. Our
Data was taken from the Central Texas Region and 3 tables were drawn breaking down the factors of health and income. The evidence suggest that for Central Texas residents surveyed making $35,000 or less had a higher percentage of being uninsured. This correlates with economic status and jobs such as blue collar workers as opposed to those white collar occupations, specifically those in the community averaging a yearly income of $15,000 - $35,000 had no health care coverage of approximately 30%. Upon further analyzing the second graph the number 1 reason the community suggested at 30% for not having health care coverage