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Choosing best plan in United States Health Insurance

In the United States, the system of health care is mainly owned by private sector companies but there are facilities being owned by federal, state and city governments.  It was made public in a report by the World Health Organization (WHO), that the total money spent on health care in the U.S. was as high as 15.2% of its GDP in 2008 which is the highest in the whole world.

The sources of health insurance in U.S. include public programs like Medicaid, Medicare, the Veterans programs and private health insurance. Private health insurance is taken by the maximum people in the United States that means approximately 58% of all Americans. The public programs form the primary source of health cover for elderly citizens and families that belong to low-income households. In case a person is not covered by a publicly funded program, or if the coverage is partial, there arises a need of private health insurance. (AP)

The Office of the Actuary (OACT) of the Centers for Medicare and Medicaid Services collects and publishes data on the money spent on total health care in United States that includes both the historical levels as well as future projections. In 2006, the money that was spent was almost 16% of GDP, an increase of 6.7% over that spent in 2004. It is predicted that growth in money spent will increase to average 6.7% annually over the period from 2007 through 2017. The total hospital capacity includes non-profit hospitals, whose share is relatively stable i.e. about 70% for decades along with privately owned for-profit hospitals and the government hospitals that are owned by both county and city governments.

It was found by the Congressional Budget Office that major growth in the health care sector has been made possible with changes that have come in medical care that was made possible by advancement in technology. Some other factors that helped for the same are higher income levels, the changes in insurance coverage, and inflation.

A point must be noted that the health insurance system in America as compared to the health insurance in almost all other developed nations is a voluntary system. There are a lot of perspectives on the purpose of health insurance in the United States. There are a lot of benefits of health insurance.

  • For consumers, there are two main purposes for health insurance: –

i)              Providing access to health care that can be afforded by all with the help of preferential pricing.

ii)             Offering protection financially in case of any type of unexpected health care costs.

  • For clinicians and other health care providers, the purpose of insurance is to ensure that financial stability of their practice is maintained. Health insurance was for first time developed by Baylor University Hospital for the same purpose.

With the change in times especially in 21st century, there are a number of Americans who do not have any health cover but the demand for all forms of insurance has been increasing as the people are getting cautious of protecting themselves, their health and their property.