Approximately 84 percent of Americans have some form of health insurance, but is health insurance a worthwhile investment for Americans? ¹  Let’s take a brief look at health insurance in America.

Americans pay for health insurance with the peace of mind that they will be taken care of when they need medical care.  It is obvious that health insurance plays a large role in American health care.  For example, most doctors’ offices bill through insurance companies.

Health Insurance Fraud

Health insurance fraud is a growing problem in America.  For example, you might be over billed or falsely billed for your medical services. ²  One problem with fraud is that it leads to higher costs for everyone, including patients.  Another problem with fraud is that insurance companies do not always take the problem seriously. ³

The best thing you can do to avoid becoming a victim of insurance fraud and keep health care costs down is to stay aware by asking questions about items on your medical bills that you do not understand.  Talk to doctors and insurance companies.  Do not be afraid to ask questions.

Medical Expenses Not Covered

Having health insurance does not necessarily “guarantee” that you will receive any coverage in the event of a medical emergency.  Many private health insurance policies do not provide coverage under certain circumstances. ^{4 5}  If you have health insurance, make sure you take the time to completely review your policy, and ask specific questions if necessary.

We like to think of investing in health insurance like investing in the stock market or saving for retirement.  It is never a good idea to put all of your eggs in one basket, relying solely on a health insurance policy to cover almost any medical situation.  To help “insure” your security, also try to be self-sufficient and plan ahead as much as possible.  For example, instead of paying health insurance premiums, invest the money you save for medical expenses or retirement.

The Bottom Line

Health insurance may be a good supplement to a health care program. However, Americans rely heavily on health insurance, which has proven to be a mistake for some in the past. Health insurance has not proven to be a sure thing, regardless of what health insurance companies lead you to believe.

In the end “some” health insurance is probably a worthwhile investment for most Americans. However, the reliability of private health insurance appears to be uncertain, due to the lack of coverage under certain circumstances. In the end try to be responsible for yourself as much as possible. An ounce of prevention is worth a pound of cure.

Sources:

1. Income, Poverty, and Health Insurance Coverage in the United States: 2006.  U.S. Census Bureau. http://www.census.gov/prod/2007pubs/p60-233.pdf
2. Insurance Fraud and Abuse: A Very Serious Problem.  Quackwatch. http://www.quackwatch.org/02ConsumerProtection/insfraud.html
3. Small Insurance Fraud Costs Big Dollars. Louisiana Department of Insurance. http://www.ldi.state.la.us/Legal_Services/Fraud/Facts/fr5.htm
4. Sick and Broke. CommonDreams.org News Center. http://www.commondreams.org/views05/0212-10.htm
5. Medical bills make up half of bankruptcies. MSNBC. http://www.msnbc.msn.com/id/6895896/

This entry was posted on Thursday, August 14th, 2008 at 4:09 pm and is filed under Health Care. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.