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When we looked at sources of financing for healthcare, 32 percent comes from private
health insurance and another 20 percent comes from Medicare (which is also a kind
of insurance - just government organized). And indirectly, the 12 percent paid
out of pocket is heavily influenced by insurance choices. That is a significant
impact on the way healthcare is delivered and financed.
When we talked about factors influencing the demand for healthcare, health insurance
plays a major role - more so than in other kinds of insurance. Insurers call this
"moral hazard" - where a person's behavior changes as a result of the protection
afforded by insurance. While we don't torch our homes once we buy homeowners insurance
or drive into a light pole once we have collision insurance, we do increase our
demand for covered healthcare services.
We will also explore how insurance has become so tightly linked to employment,
and the changes in insurance coverage for our population as a result.
In this week's session we will explore:
- How insurance changes the demand for healthcare services
- The theory of insurance - AKA our willingness to pay for risk aversion
- History and growth of health insurance
- The strong link between employment and insurance
- Adverse selection and underwriting concerns
- Different insurance models
- The impact of not having insurance
Resources Used in This Session