Mandatory Private Health Insurance Policy

Document Type:Research Paper

Subject Area:Economics

Document 1

In this case, the policy has a wide range of coverage and levels since it has benefits that are specifically identified by the law as a form of statutory minimum level of coverage and benefits, (Greß, et al. The implementation of this policy is based on equal sharing of coverage and benefits since irrespective of age, gender and health condition, every person that gets the plan has access to same premium insurance plan as the others in the plan and they all get same benefits. In this case, the under-privileged people and those who are grouped as low-incomer earner, get the advantage of the government being able to subsidize their premium and in some case, they are paid for. The main component of this policy is that the person who happens to be a high income earner, is not able to subside the low income earner.

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Therefore, the policy offers a wide range of coverage in the basic or rather essential healthcare services, (Savedoff and Gottret 4). In their article, these author explain that mandatory private health insurance serves as an alternative arrangement for the mandatory social health insurance. It is argued that private health insurance has a coverage to services that social health insurance don’t have which include dental care for adults as well as cosmetic surgery. The common form of insurance plan is the supplementary insurance covers that people take in countries such as France in order to cover for the financial risk, (Stefan, Okma & Wasem 3). According to Jost, the health economics policy makers have challenges when designing a regulatory measure for the mandatory private health insurance cover.

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Their challenges are dependent on the functions that they intent to achieve through the policy, (Imai, Jacobzone & Lenain). Therefore, the mandatory health insurance policy is effective in German since its benefits are projected through cost containment, (Greß, et al. Effects of the mandatory private health insurance on equity in health delivery is identified as a problem in France. The reason behind is the increase in the cost of copayment which only involves basic services that are not graded as luxurious. There are about 59% of the unskilled workers who no supplementary private health insurance. This is according to case study done to determine the percentage of income earners who have access to supplementary private health insurance, (Bocognano et al). If the government intervenes and issues standard contracts, then there is a high risk of an exacerbated problem where adverse selection will come in which will eventually lead to instability of the market, (Belli).

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Conclusion In conclusion, the government intervention to reduce risk is through implementation model that strategically helps in the implementation of mandatory private health insurance. Through the intervention, the government will be providing subsidiaries to health in saving the market since the insurance companies have a competitive arena where each is focused on settling for low-risk. Intervention of the government should be well calculated to reduce risks related to adverse selections. Mandatory private health insurance is therefore, a close remedy to the healthcare cost problem especially in the United States but clear government implementation projects should be put in place to prevent chronic market instabilities. Which Coverage for whom? Equity of Access to Health Insurance in France. Paris, Presentation at the European Public Health Association Congress, Paris Dec 14-16 2000.

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