Why Is Health Insurance So Important?

By Robert Fredricks Posted in Health Insurance News



Healthcare Debates

With the current climate surrounding the healthcare debate many wonder why it is so important to have health insurance coverage. In layman’s terms, health insurance provides financial coverage for expensive medical procedures for a premium paid monthly or bi-monthly. The average cost of a visit to an emergency is $1500-$5000 for a non-emergency visit. Because healthcare cost is not regulated, an MRI (Magnetic Resonance Imager) at one hospital can cost several hundred dollars more than the same test at another hospital.

Without health insurance, the patient is responsible for 100% of the cost. One inpatient visit, which can cost a minimum of $5,000, can completely wipe out a savings account. A normal (non-surgical) birth without complications can cost around $10,000. Even trips to a primary care physician for routine checkups can cost several hundred dollars. Healthcare in America is very expensive and those who do not have health insurance stand the chance of being ruined financially if they require anything more than routine medical care.

Quality Of Care

Patients without medical insurance and the ability to pay large sums of money of healthcare may not receive the best possible care in the event of a life-threatening disease. It is no secret that those with health insurance have better access to medical care than those without medical insurance. Patients without medical insurance will not have the same access to specialists in the event of a life-threatening illness.

There is another negative side affect of treating patients with no health insurance that directly affects the cost of tests and procedures. If a person is treated at an emergency room or admitted to a hospital and does not have health insurance, they are considered “self-pay.” If the patient cannot afford to pay back the hospital, then the hospital has to absorb the cost of caring for that patient. In turn, the hospital increases the cost of care for those with health insurance to prevent the hospital from losing money. The hardest hit hospitals are non-profit hospitals or state funded hospitals that care for the poor. More and more of these hospitals are closing due to bankruptcy. It is vitally important to the health of the healthcare system to have everyone insured. Not only does this reduce the cost of medical care it also gives patients access to the best medical care available.

Related posts:

  1. What Does Health Insurance Do?
  2. Health Care Reform: Goodbye To Doctor-Patient Relationships?
  3. How Does The Co-Insurance Clause In My Health Insurance Plan Work?
  4. What Is An IPA For Health Insurance?
  5. How Does One Survive Without Health Insurance?






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