Inequities in Insurance

Abstract

As insurance companies, like any other company, is subject to the ideas of supply and demand, their goal is to create optimal pricing packages to maximize profits and enrollee retention. However, this creates exorbitant prices for health insurance packages. To curb this, the Affordable Care Act (ACA) required companies to provide insurance for their workers and, for smaller companies and individuals, an exchange-based market was formed where people can buy their own coverage. Though its goal was to expand access to healthcare, the ACA was not successful in making health insurance more affordable. The Medicaid and Medicare government programs support lower-income individuals and families, providing them with some insurance. But, the qualifications for these programs exclude new immigrants and the lower-middle class, causing an unequal spread of coverage. Additionally, those with insurance do not use it equally. For example, while paying the same amount, the healthy would use less insurance but the sick would use more. Understanding the cost models that insurance companies use to determine if an enrollee is deemed profitable could shine a light on how much is provided in insurance plans and how to make health care more accessible and useful. Throughout the 21st Century, there have been many debates regarding how policies should evolve and address the inequities in healthcare. With recent politics and differing views of the two political parties - Democrats and Republicans -, there are, though gradual, changes to healthcare policy to increase coverage. However, further change is needed with a potential action plan being to enforce insurance companies to allocate portions of their funds to subsidize needing customers and the government subsidizing those along the poverty line to afford healthier options.