Chapter 3, Problem 1E

To determine

Necessity of health insurance.

Explanation of Solution

Health insurance pays the health services of the buyer, that is, the insurance carrier will cover for the charges incurred by the buyer for the medical treatment. Health insurance plays an important role in healthcare. This is because those who have no health insurance will get only least health care and it will worsen their health. Another benefit of health insurance is that nowadays, the medical care expense is increasing, so that health insurance will facilitate health care affordable and also, it will help the people in emergency situations. The importance of health insurance can be listed as follows:

1. 1. Health insurance provides better healthcare.
2. 2. Health insurance facilitates healthcare affordable and guarantees timely care.
3. 3. Health insurance will help at the time of emergency.
4. 4. Health insurance will prevent the people from increasing the cost of health care.

Economics Concept Introduction

Health insurance: Health insurance refers to an insurance that covers all the charges incurred by the buyer for the medical treatment.