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The Value of Health Insurance

The value of health insurance coverage in the United States can be seen in multiple situations and areas of life. Health insurance coverage provides certain obvious benefits, such as lower direct medical costs, but it can also provide secondary benefits, such as admission to an emergency room for after-hours treatment or required immunizations and check-ups for children.

  1. Premiums vs. Medical Costs

    • Going without health insurance may be cheaper in the short term for younger adult Americans with few health problems. As people age, the need for coverage grows as the likelihood of a health problem increases. Some may consider the cost of a monthly premium a financial burden; but when this premium is compared to the high cost of medical care without any type of insurance coverage, the value of health insurance is evident. According to "USA Today," medical costs in the United States increased by 9 percent in 2010. A consumer without health insurance would have to directly bear the burden of this cost increase.

    Emergency Room Visits

    • A trip to the emergency room for almost any condition can be expensive for a person without health insurance. Some hospitals may even refuse a patient care who is not critically injured or ill if the patient does not demonstrate an ability to pay. Having health insurance not only protects a patient from the high cost of emergency room care but it may also get her admitted to a facility for treatment when she may not have otherwise been admitted.

    Kids and Health Insurance

    • Children require immunizations and regular doctors' visits to ensure healthy growth. Obtaining all the medical care that a child requires without health insurance can be difficult given the cost of care and frequency of required visits. Health insurance is valuable because it can offset these high costs and help to ensure a healthy child. Health coverage may also encourage parents to take their children in for treatment earlier, in turn, making the cost of care more manageable.

    Quality of Insurance Matters

    • Not all health insurance coverage provides the same level of care. According to "U.S. News and World Report," a policy with a low-cost monthly premium may give a consumer peace of mind, but the policy may provide very little in terms of actual coverage. Value, when it comes to health insurance, is not just in terms of the monthly price of the premium but in what the particular policy actually covers. If a consumer has a cheap health insurance plan and his claim is denied, he may end up paying more money as opposed to a consumer who has a more expensive plan with better overall coverage.

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