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The Advantages of National Health Insurance

Americans must obtain health coverage from independent health insurance companies because, unlike in other countries such as Canada and England, the United States has no national health insurance. The topic of national health insurance has been hotly contested in contemporary society. Some advocates for health care reform argue that the development of a national health care system is of paramount importance, while others argue the ills of such a system. While many are divided on whether national health insurance is the right choice, there are some nearly irrefutable advantages to a system of this type.

  1. Everyone is Covered

    • Under a national health insurance system, all citizens would be covered, regardless of their employment or financial status. The individual, social and societal costs racked up by individuals without health insurance would be eliminated.

    Legislative Control of Insurance Rules

    • Under a national health insurance system, the government, not privately run insurance companies, would determine the rules by which the insurance plan would operate. For example, in a national health insurance system, individuals would not be denied coverage for pre-existing conditions as is commonly the case now. This legislative control of insurance rules also puts more power into the hands of the citizens as they could base their election decisions in part upon how their legislators vote on health insurance rules.

    Reduced Financial Hardship

    • Many individuals struggle with financial hardship as a result of their high medical costs. In 2007, more than 60 percent of all bankruptcies filed in the United States were in some way related to medical costs. Individuals covered by a national health insurance plan would be less likely to rack up high medical bills and, by connection, less likely to experience financial need as a result of the costs of their medical treatments.

    Paperwork Reduction

    • In our current system, those in the health care industry must shuffle through a patchwork of private insurance companies, spending an excessive amount of time dealing with billing and other insurance-related issues. This extensive paperwork costs money. In fact, as Yes! Magazine reports, 15 cents of every dollar spent in the health care industry today goes to paper shuffling and medical billing. If all or most individuals were covered by one overarching insurance program, billing would be much easier and the need to complete lengthy insurance claims processes reduced.

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