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Health insurance is a type of insurance whereby the insurer pays
the medical costs of the insured if the insured becomes sick due to
covered causes, or due to accidents. The insurer may be a private
organization or a government agency. Market-based health care systems such
as that in the United States rely primarily on private health insurance
With publicly funded health insurance the good and the bad risks all receive coverage without regard to their health status, which eliminates the problem of adverse selection and amplifies the problem of moral hazard. According to the latest United States Census Bureau figures, approximately 85% of Americans have health insurance. Approximately 60% obtain health insurance through their place of employment or as individuals, and various government agencies provide health insurance to over 29% of Americans. In 2005, there were 41.2 million people in the U.S. (14.2 percent of the population) who were without healthcare insurance for at least part of that year.(ibid) For many people, however, this does not boil down to a simple question of affordability. |
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