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What Is Public Insurance?

Public insurance is a type of coverage that provides benefits for citizens of a country as part of a benefits program that is paid for collectively by everyone. Many countries offer public insurance benefits, and they have the potential to help many people get access to health insurance coverage that they could not otherwise afford.

  1. Public Health Insurance

    • The most common type of public insurance is health coverage. With this kind of coverage, citizens of a country can get access to health insurance for a reduced rate or for free, depending on the system. When a citizen needs health care, he can simply go to the appropriate medical facility and get treatment. Part of the money for the program is typically subsidized with tax dollars that are provided by the citizens of the country. In the U.S., the government provides Medicare public health insurance for the elderly and Medicaid for the poor.

    Benefits

    • One of the primary benefits of this system is that it provides health care benefits for everyone who qualifies. When public health care is not used, many people within a country cannot afford to pay for health care because of the increased costs associated with it. By using free or reduced health care, a country's citizens can take advantage of preventive care and potentially live longer. This has the potential to increase the quality of life for the country as a whole.

    Drawbacks

    • Even though public insurance does have the capability to help many people, it also can lead to a few potential problems as well. For example, to pay for this kind of coverage, it takes tax dollars. This means that taxes either have to be raised or other programs must be cut out of the budget. This could end up costing everyone more money or it could keep them from gaining access to other government programs that they need.

    Income Guidelines

    • Another type of public insurance is one in which eligibility is based on income and assets. For example, the Medicaid system in the United States is a type of public health insurance that is available for those with low incomes. To qualify for this program, you have to fill out an application and verify that your income is below a certain amount. You also cannot have above a certain amount of assets to qualify for the program. Many states also offer public health insurance programs for children.

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