The Health Care Of The United States

1773 WordsAug 6, 20168 Pages
Introduction The healthcare cost in United States is almost twice as much as it does in rest of the developed countries. The $3 trillion cost in health care cost was its owe country than it would have the 5th largest economy in the world. The asymmetry of information in the health care sector often leads to making bad decisions for example, doing more business with less-profitable or riskier market segments and insurance companies try to reduce exposure by limiting coverage or raising premiums (ConsumerReports, 2014). “Because of adverse selection, a company selling insurance finds people at higher risk of death are more willing to take out and pay greater premiums for policies” (Investopedia, 2016, para. 4). A health insurance…show more content…
American that currently have and like their insurance does not have to switch over to ACA as long as it meets minimum requirements (HHS, 2016). Americans that don’t have insurance has an options to choose the insurance coverage that works best for them from the new open insurance market. “The insurance exchange will pool buying power and give Americans new affordable choices of private insurance plans that have to compete for their business based on cost and quality” (HHS, 2016, para. 2). In addition small business will have the choices to choose on these exchanges for competitive insurance coverage and they will receive tax credit to help offset the cost of covering their employees (HHS, 2016). Advantage of ACA The practice of adverse selection by insurance companies will be eliminated through ACA because it bans insurance companies from denying insurance coverage to people with pre-exiting medical condition. ACA prohibiting health insurers from charging different rates based on patients ' medical histories or gender. The people will have the power to appeal insurance company’s decision to deny any treatment ordered by doctors which is covered under the insurance plan. Lifetime and annual limits are on eliminated. Parents can add children up to age of 26 on their insurance plan which in turn increase profits on insurance companies
Open Document