About Public Health Insurance

Public health insurance programs in America differ greatly from those offered by other nations. The nations that have such systems are developed countries and their programs when compared with one another also vary in scope and funding mechanisms. In the United States, the federal government offers limited programs for senior citizens and a joint program with the states administered by the states, but not a single universal public health care coverage system like those in other First World nations.
  1. Types

    • Public health insurance is a program that government agencies organize or oversee, with an aim that health care services can be made available for nearly everyone. Funding for public health insurance programs can be derived from varying sources, depending on the governmental structure. In the United States, a broad public health insurance policy has yet to be established, though programs exist to serve segments such as senor citizens and low-income families. States and smaller political subdivisions also offer other forms of public health insurance programs.

    Considerations

    • Public health insurance depends greatly upon open access and accountability, which differs from private health insurance. Private insurance involves contracts between individuals or companies and insurance companies. Public health insurance programs are funded either by taxes, or, as in nations with national health insurance programs, through contributions by employers, deductions from worker paychecks, or government assistance. Generally, when taxation is used, programs are available to everyone regardless of their ability to pay for services rendered.

    Function of Public Health Insurance Systems Outside America

    • Outside the United States, most First World nations have some form of a public health insurance system. Nations in the United Kingdom have the National Health Service (NHS), while Canada and Australia offer what is known as the Medicare systems. Other nations, including Germany, France, Belgium and Germany, provide public health insurance programs under a government social security system funded by taxes pledged or payed over a lifetime. How much an individual must pay for direct cost of care can differ from nation to nation.

    Federal Public Health Insurance Features in the U.S.

    • In the United States, most health insurance programs are offered through private industry. While the federal government does not provide a program universal across state lines, there is Medicaid, a jointly-funded federal state health insurance program for low-income and needy individuals and families. It covers about 36 million people. The federal government provides funding and broad guidelines, and each state establishes its own program, often with differing names and eligibility requirements. For example, in California the Medicaid program is known as Medi-Cal.

    Misconceptions about Medicaid and Medicare

    • Medicaid is not to be confused with Medicare, a federal health insurance program offered only to persons who are age 65 and older or who meet other special standards. Medicare is partially funded by payroll taxes (labeled "FICA," for Federal Insurance Contributions Act on payroll stubs). Medicare rarely covers all health care costs and senior citizens often face out-of-pocket costs or seek supplemental insurance coverage.

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