In the United States, most people have health insurance. This is not the case in many European countries, where healthcare is nationalized and is therefore free. With that said, of course, it is possible to have health insurance, and therefore private healthcare, in European nations too.
The quality of healthcare in America is significantly better than it is in many places in the world, which is in part why it is privatized. If you are an American citizen with health insurance, then you are probably wondering why your insurance costs so much. This post will tell you why.
One of the first things that you need to know if you want to understand why your health insurance costs as much (or as little) as it does is to understand what type of insurance you actually have. In the U.S., the most common type of health insurance is managed care contracts, which more than three-quarters of Americans have. These kinds of policies tend to be quite affordable. However, there are also of course other, more high-level types of insurance that people can access, which can cost a lot more.
If you have existing health problems when you apply for health insurance, you should expect to pay more. People who are already in bad health are significantly more likely to make use of their policy than people who aren’t. Because of this, people with health problems are naturally charged more. If you do have health problems, then in many respects you are actually lucky to have a policy. Many insurers won’t even consider giving health insurance to people who are already in bad health.
Frequency of Use
The frequency with which you use your health insurance policy will also play a very large role in the amount of money that you are charged for it. Naturally, if you plan on using your policy often, then you will have to pay higher premiums. Your premiums increase with every claim you make. It is also worth noting that if your health begins to deteriorate and you begin using your policy more, then your premiums will go up even more. A person who is in bad health has to pay more because they are more likely to use their policy than somebody who is in good health, as already mentioned.
Quality of Care
One of the reasons that you pay more for health insurance in the United States than you do in many other places is because you are paying for very high-quality healthcare. As mentioned in this post’s introduction, the U.S. has some of the world’s best healthcare. You are guaranteed good healthcare when you go to an American hospital. While medical malpractice is definitely a threat, it’s less so in the U.S.A. You always pay more for good products than you do for ones of lesser quality, which is why healthcare is free or less expensive in other places.
When you have health insurance, you are also able to access exclusive private hospitals. It is worth noting, membership in private hospitals can be very expensive. More often than not, you have to pay an additional yearly premium to be a member of them, on top of your insurance payments. However, the cost of the actual healthcare is significantly reduced by your insurance payments, so you don’t have to worry about spending a fortune on operations or treatment. Private hospitals are accessed by the nation’s most elite, but they can be accessed by you too if you have health insurance.
Something else that’s worth noting is that you can make more contributions to your health insurance policy if you want to, which can reduce the amount that you have to pay each month or year. A lot of people pay the bare minimum toward their insurance plan, mainly because they are on reduced budgets. If you have a lot of savings then you can significantly reduce the size of your premiums or the amount that you have to pay by making voluntary contributions. Voluntary contributions are definitely something worth doing if you are the holder of an expensive health insurance policy.
One of the other good things about health insurance in the U.S. (and why it’s so expensive) is that you are able to get immediate help. In places like the United Kingdom, you can have to wait several months to get treatment even if you have a very serious disease or health condition. In the U.S., this is not the case at all. You can turn up to a hospital and get treatment immediately. You don’t have to worry about delays, waiting lists, or being turned away because there are too many people waiting for treatment.
Healthcare in the U.S. is a controversial subject. A lot of people think that it’s exploitative, while others think that it is the world’s best. One thing that is for sure is this: the U.S. healthcare system provides people with health insurance with efficient, effective, and high-quality treatment. If you can’t afford to pay for healthcare, then you too should take out a policy.
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