Leading Sources of Health Insurance Coverage

Health insurance coverage may be provided by either the private sector or the government in a free market economy. In the United States, most Americans are covered under a private insurance system, with premiums paid for by the individual or his employer. Low income adults, children, and the elderly are usually covered by government subsidized health care in order to ensure fair access to prescription drugs and medical procedures.

Single Payer

• Since the self-employed work for themselves, they must finance the burden of health care on their own. Persons without access to health insurance may include part time workers, small business owners, freelancers, and employees who work on commission. Hundreds of different U.S. insurance companies offer insurance to individuals, of which the most popular is the Blue Cross and Blue Shield Association. Blue Cross Blue Shield is a confederation of 39 health insurance agencies that provide affordable health insurance to more than 100 million Americans.

Employer Sponsored

• The Kaiser Institute reports that 80.4 percent of full time workers in the private sector were offered health insurance in 2005. These plans are fully paid for by the employer or the costs of coverage are split between the employer and employee. Larger companies can often negotiate for health insurance policies in volume, which allows employees to obtain better coverage and lower premiums than they would be able to obtain on their own.

COBRA

• Employees who have been recently laid off by their employer frequently find themselves without health coverage. Consolidated Omnibus Budget Reconciliation Act (COBRA) plans provide subsidized health insurance for 18 months after an employee has been terminated.

  If your job loss occurred between Sept. 1, 2008 and Feb. 28, 2010, the U.S. government pays 65 percent of your cost in keeping health care coverage, while the employer receives a tax credit for covering 35 percent. With this subsidy, the average American family pays $410 a month for coverage, as compared to $1,137 without coverage, the Henry J. Kaiser Family Foundation reports. Unless Congress extends it, the subsidy will expire on Feb. 28, 2010

Government Programs

• Medicare provides health insurance for persons who have paid payroll taxes into the program. Medicare recipients must be at least 65 years of age to qualify, or they must suffer from a disability that prevents them from working. Medicare covers medical procedures and prescription drugs. Medicaid is a program funded by the states and the U.S. federal government for low income adults and children. As of 2007, Medicare and Medicaid provide health coverage for roughly 84 million Americans.

  The State Children's Health Insurance Program (SCHIP) provides matching federal funds to states in order to subsidize health insurance plans for families with children. As of 2006, SCHIP covered 7.3 million adults and children.