Health Insurance

The most basic definition of health insurance is that it is insurance which pays for all types medical expenses.  It is used in a broader sense to encompass the areas concerning mental and physical disabilities, as well as custodial or long-term nursing care (also referred to as “assisted living”).  Health insurance is classified in two different ways --- privately provided programs from insurance companies and social programs that are government sponsored.

Health insurance can be purchased in group format, such as when an employer provides medical, dental, and sometimes vision insurance for their employees (oftentimes on a shared-cost basis).  Or it can be privately purchased by an individual for themselves and/or their families.  In either case, the purpose of this type of insurance is to protect individuals against high or sudden health care expenses.  The government provided plans, a.k.a. social welfare programs provide the same protection for the less fortunate and indigent members of American society.

Herein lies the dilemma with health care as it specifically relates to the medical aspects.  Unfortunately, in the United States, there are three groups of individuals where health insurance is concerned:

• individuals that can either afford the out of pocket expense for health to protect themselves and their families, or those that have the same thanks to the employer providing it or at least a share of the costs.
• individuals who are considered indigent or poor, but have health insurance provided by one of their government’s social welfare programs
• individuals who work for a living, but do not have the financial means to afford health insurance.

It’s a sad state of affairs, but the last group mentioned is the largest demographically.