Access to a health insurance plan is no longer a luxury, owing to the many emerging diseases and the escalating costs of treatment. Moreover, the main primary purpose of health insurance is to allow holders to receive the best medical care without straining their finances. The law requires every employer to cover their employees’ health insurance coverage under the affordable care act or otherwise known as Obama Care. Additionally, individuals can opt for personal health covers with their insurance providers, and these can perform the same function of covering the costs of their health. Whether private or employer-provided health coverage, ensuring one’s health is essential in covering the cost of healthcare because it is no longer a luxury but a necessity.
The affordable care act that is otherwise known as Obama care requires employers to cover the health needs of their employees through insurance. The act requires that Americans maintain a basic level of health insurance, which is generally referred to as minimum essential coverage (Kullberga, Blomqvis, & Winblada, 2019). Such plans mean that employers split the cost of premiums with the employees. The employer does all the work in choosing the type of plan options for the employees, and hence, the employees get the best variety of options available on the market. Moreover, premiums that are contributed by the employer are generally not subject to federal taxes. Contributions for health insurance can be made pre-tax hence lowering the taxable income.
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Although private health insurance may be sought to cover a wide array of illnesses and conditions, it does not refer to patients abroad. Moreover, it does not allow for the functions of risk pooling across individuals. Individual plans will enable the person to be included the liberty to choose their insurance plan of choice and convenience (Pardo, 2019) . This allows individuals to meet the plans that meet their needs and wants at their expediency. The person insured also has the liberty to renew or change their choice of cover during the open enrolment period. Additionally, private insurance plans are never tied to the job, and hence, employees can change their jobs at will without losing their cover. The insured is allowed to choose their plans from doctors and hospitals they can trust.
Primary Insurance plans are made of insurance schemes that are financed via private health premiums. An insurance policy usually comprises a contract issued by an insurer to a person that is covered by the same plan. Such insurance plans typically are but not always voluntary and may also be compulsory for the employees and include part of their conditions of work (Pardo, 2019) . Premiums are never related to the income even though the purchase of the PHI by a specific kind of population can be subsidized by the government. Although the insurer may be owned by the government, the channel of financing is never administered by the government.
Overall, various differences abound between private or individual insurance covers and employer-sponsored insurance covers. Generally, they are all forms of insurance covers that help to subsidize the cost of health care. With an increase in the price of healthcare all over the world, it is paramount that every individual strives to have some form of health insurance coverage because they not only help to cut down the cost of health care but they also expose individuals to the best caregivers in the health care industry.
Works Cited
Kullberga, L., Blomqvis, P., & Winblada, U. (2019). Health insurance for the healthy? Voluntary health insurance in Sweden. Health Policy, 1 (1), 122-132.
Pardo, C. (2019). Health Care Reform, Adverse Selection, and Health Insurance Choice. Journal of Health Economics, 1 (1), 12-15.
