First, when it comes to health care, the basics need to be established and expounded. Insurance is there to insure that an individual will be taken care of in the event of an injury, sickness, or tragedy.
Insurance providers require their clients to pay a premium every single month (depending on the policy) for as long as they want coverage. The amount of premium paid each month is not only dependent on which plan an individual chooses but also on the age of the individual and on how great is their risk for an accident to occur.
Ideally, the premium is money paid to the insurance provider every month and never seen because no accident ever occurs.
In the event of sickness or injury the individual pays a deductible to the insurance company and then the company pays the rest. Typically, the higher the monthly premium the lower the deductible and vice versa.
Although this is only a crude explanation it helps with parameters going forward.
One of the important things the Affordable Care Act has done to completely reform health care is not only to mandate that people must acquire insurance but also that people with pre-existing conditions can apply for it and insurers have to grant them coverage.
This is a crucial element of the ACA. This legislation allows individuals to sign up for insurance after contracting or injuring whatever they seek to insure in the first place.
For the welfare mentality this is liberating. However, in the long run this could produce problems.
Future posts will delve deeper into possible issues.
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