Economic Implications of National and Private Health Insurance in the United States

2482 Words10 Pages
Currently in the United States, acquisition of affordable health insurance plans through employers and private corporations is one of the main topics in the political landscape between liberals and conservatives. The traditional way of obtaining health insurance is either by subtracting a certain amount of payout from one’s salary/paycheck or pay out of pocket. However, many people do not have access to health care because of the high costs associated with poor insurance plans that require individuals to pay high premiums and deductibles, which may or may not contain good benefits such as free preventative care. In addition, due to the past economic recession in 2008, many employers could not afford to pay for health benefits and…show more content…
Census Bureau, 2012). Due to the high amount of people who are not insured and require medical assistance, whether it is crucial or non-crucial, refer to the ED to obtain the needed health care because the ED cannot turn down anyone who requires medical attention.
This overarching problem has significant economic implications in America where the costs to provide healthcare are high and the overall organization between national/private insurance and hospitals/clinics is highly inefficient. With all of these issues plaguing the national economy with a financial structure that is in disarray, one would question how America’s health insurance developed into a severe problem both from an economic and individual perspective. To understand how and why the current health insurance system is causing many problems to society and the economy, a historical observation is required.
Starting in the mid-19th century, the earliest form of health insurance was incepted by the Franklin Health Assurance Company in Massachusetts in 1850 where it provided accident insurance related to injuries from railroad and steamboat travel. Health insurance was slow to form and was not formed until the 1930s (Yale Journal of Medicine & Law, 2009). Before the early 20th century, health insurance was not commonplace because of poor healthcare quality, which pushed people away from hospitals due to its unreliability.
Get Access