Health, Disability and Long Term Care Insurance Essay

Health, Disability and Long Term Care Insurance - Essay ExampleThis crisis is a fact and statistics are good enough to enkindle its validity. USA spends twice more on its annual healthcare then does 19 of the developed countries in North America and Europe. The percentage of GDP dispense to health seems to be at a rise since 1997 when it reached to 15.7% in the year 2005, and as projected by the agencies of Medicare and Mediaid this percentage would further outgrowth in the neighboring 10 years to a figure of almost 17.5% of the GDP. Yet 15.6% of the American population is still uninsured. (services, april,2005) For a country that has the highest expenditure rates on healthcare, it is preferably shocking that the public gets to face the crisis of high rising prices for healthcare. The two major problems set about by the healthcare scheme of USA include rapid increase in the expenditures made on health and disabilities and high costs for administration of health care issues whi ch account for at least 26% of the total silver in healthcare. The reasons for the rising costs are many including the dependence on the high costs of new medical technologies, drugs and tests, the rising population of the elderly, the rising frequencies of driveway traffic accidence and criminal activities requiring medical attention, intensive work hours and rising pays of health care professionals and doctors, high awareness of medical problems requiring immediate and most of the generation unnecessary medical attention, untoward issues like fraud and issues causing waste of administrative money, the internal situation and inflation rates of the health care system and many more reasons. TYPES OF MEDICAL COVERAGE Broadly speaking, health amends can be of two casings. First is the group health insurance in which an employee and his immediate family are covered by an insurance company that is either partially or mostly paid by the employer. This type of insurance comprises as h igh as 90% of the total insurance issued by the insurance companies. (DeNavas-Walt, 2008) Sometimes this type of insurance may not provide the necessary guard that an case-by-case requires in that case an additional aid with the help of individual insurance can be purchased. Second type is the individual insurance plan. This type of plan, as the name suggests, is individually tailored to anyones needs. This type of insurance is usually acquired when the group insurance is not enough or requires certain addition. In that case one can choose their own preference of insurance company and select as much coverage as they require. This means an encompassing browsing of the options available in the market as the mark ups and premiums on different plans by different companies vary to a great extent. The group and individual insurance plans provide different types of coverage. These policies further include the following types of coverage 1) MAJOR MEDICAL EXPENSE INSURANCE Major medical e xpense insurance is a type of insurance which covers the excess medical expenses incurred due to sudden accidents, injuries or severe illnesses. It is usually in relation to the basic individual or group insurance that would provide the baseline insurance for the regular medical expenses. This type of insurance only covers the excess and high bills that are often faced after an accidental situation or a severe illness. Usually the amount that can be paid through this type of insurance is quite an high which requires the premium to be covered by the individual through various ways.